Cont... - Community Futures Treaty Seven

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					Community Futures
  Treaty Seven
Community Futures Treaty Seven
5th Annual Disability Employment Symposium
“Keeping the Momentum, Moving Forward”
May 17, 2012
Entrepreneurship – Shawna Morning Bull
 Western Economic Diversification (WED)
  • General Loan Fund
  • Disability (Entrepreneurship)
 Aboriginal Business Development Program
  • Business Support Officer
 Government of Alberta – Human Services
  • Business Support Initiative
  • Entrepreneurship Training
  • Third Party Consulting
 First Nations Entrepreneurial Youth
 Community Economic Development

 Business loans to Treaty Seven Nation Members
 51% percent interest in a business on or off
  reserve, excluding agriculture loans.
 Loans up to $25,000 for asset purchase, equity
  and joint venture participation.
 Loans must have community support (Band
  Council Resolution).
Purpose of loans primarily for business
 creation and expansion.
Emphasis on loans that would not
 otherwise qualify at a conventional
 financial institution.
All loans require equity 10 %
Only viable business opportunities
Emphasis on loans that will generate long
 term full time employment for on or off
 reserve residents or Treaty Seven
Emphasis on loans that can assist clients
 to leverage outside funding.
Equity financing
Life insured loans
Business Support Services
 Reviewing business plans
 Identify potential opportunities
 Business counselling
 Entrepreneurial training
 Business financial control assistance
 Networking with other lenders and/or
  Aboriginal Financial Institutions
 Business Consultant Services
First Nations Entrepreneurial Youth
Camp               August 26-31,2012
    Tailored to meet the needs of youth entrepreneurs
     between the ages of 18 – 35 years.
    One week intensive training on the fundamentals of
     completing a Business Plan consisting of: Guest
     Speakers, Accounting, Marketing, Small Business Law, a
     Bankers Panel and Risk-Taking Activities
    Participants leave with a completed Business Plan and
     knowledge of Small Business Ownership and
Community Economic
Development (CED)
   CED is action taken locally by a community to provide
    economic opportunities and improve social conditions in a
    sustainable way.
   CED initiatives aim to improve the fortune of those who are
    disadvantaged. It is the aspect of “localizing economics,”
   CED is a community-centered process that blends social and
    economic development to foster the economic, social, and
    cultural well-being of communities.
   CFT7 has been active in the Treaty Seven communities as
    well as in the urban centers promoting CFT7 programs;
    meeting with the Economic Development Officers of Treaty
    Seven on a regular basis; and enhancing internal partnerships
    with both programs at CFT7, Business Development and
    Labour Market Development.
   CFT7 is active in CED projects.
Entrepreneurs and Economic
 Entrepreneurs are vital to the economic
  health of any community or nation.
 They create the opportunities for jobs
  and retaining money in the community or
 Reducing leakage and encouraging
  external money to come in.
 An economic model for community
  development begins through
  entrepreneurial activity.
 Entrepreneurs perceive an opportunity and
  develop a business to fill the opportunity.
 Large scale projects create opportunities to tap
  into the customer base of the initiative.
 Development of a plan to fill these
  opportunities is the starting point for an
 Essentially what can work, you have to try.
What is Entrepreneurship
   Wikipedia notes Entrepreneurship as:

    “Entrepreneurship is the practice of starting
    new organizations, particularly new businesses
    generally in response to identified opportunities.
    Entrepreneurship is often a difficult undertaking,
    as a vast majority of new businesses fail.
Why do Small Business’s Fail?
   Growing too fast
   Failing to track your finances
   Overspending
   Lack of reserve capital
   Poor choice of location
   Poor execution
   An inadequate business plan
   Failing to change with the times
   Ineffective marketing
   Underestimating the competition
What is Developmental Lending?
   Financing is an integral part of any business or social
    enterprise, whether it is for start-up costs or expansion.
    Loans to new, existing or expanding businesses that
    operate within the starting phase.
   Developmental loans are the different types of
    loans that cater to the specific needs of small
    businesses. (Eg. Term loan, LOC, or Equity)
   Developmental loans are have the flexibility to provide
    financing for businesses that are unable to secure
    funding under reasonable terms and conditions from
    traditional lenders. In some cases, lenders may be
    prepared to consider a position of higher risk than
    other conventional lenders.
How do Lenders deliver on their
promise to assist you?.....
   To understand you and your business by
    finding out:
       - Who are you?
       - Who are your business partners?
       - What are your successes and challenges?
       - Where is your business at right now?
What the Lender will be looking for?
 Proof of experience, skills and self
  confidence to successfully carry out your
 Your personal credit history – past
  performances can affect perception about
  how you will perform in the future.
 Your business plan must be clear,
  structured and short, but it must cover all
  elements of your business idea.
   What the Lender will be looking for?
For new and existing companies:
 Forecast for next 2 years
 A cash flow analysis that describes your forecasts:
  shows the seasonal fluctuations in your business
  and prescribes the need for capital
 Amount of personal investment
 Risk sharing strategy: with a third party, who is
  taking all the risk.
Typical Loan Criteria
   The investment fund is not a grant or forgivable loan program.
    Loans are available to businesses operating in the lending area:
   Demonstrates some job creation/retention for lending area
   Is not involved in the commercial exploitation of sex or religion or
    involved in political or illegal activities.
   Establishes a reasonable expectation of economic viability.
   Demonstrates the ability to repay funds advanced by the
   Includes other funding partners such as:
    ◦   The shareholders of an incorporated business,
    ◦   The principals and/or partners of an unincorporated business,
    ◦   Private investors, including family members,
    ◦   Government agencies,
    ◦   Other approved funding partners.
5 C’s of Lending

 Character/Credit
 Capital
 Capacity
 Conditions
 Collateral
Questions on Lending or
Thank You

 Suite 6011 1A St. SW
      Calgary, AB
 Phone: 403.251.9242
   Fax: 403.251.9750

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