Community Futures Community Futures Treaty SevenTreaty Seven

Community Futures Treaty Seven5th Annual Disability Employment Symposium“Keeping the Momentum, Moving Forward”May 17, 2012Entrepreneurship – Shawna Morning Bull

PROGRAMSPROGRAMSWestern 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 Symposium

Community Economic Development

GENERAL BUSINESS LOANS GENERAL BUSINESS LOANS CRITERIACRITERIA

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).

Cont...Cont...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

approved.

Cont...Cont...Emphasis on loans that will generate long

term full time employment for on or off reserve residents or Treaty Seven members.

Emphasis on loans that can assist clients to leverage outside funding.

Equity financingLife insured loans

Business Support ServicesBusiness Support ServicesReviewing business plansIdentify potential opportunitiesBusiness counsellingEntrepreneurial trainingBusiness financial control assistanceNetworking with other lenders and/or

Aboriginal Financial InstitutionsBusiness Consultant Services

First Nations Entrepreneurial First Nations Entrepreneurial Youth Camp Youth Camp August August 26-31,201226-31,2012Tailored 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 Operations

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 and Economic DevelopmentDevelopmentEntrepreneurs are vital to the

economic health of any community or nation.

They create the opportunities for jobs and retaining money in the community or nation,

Reducing leakage and encouraging external money to come in.

An economic model for community development begins through entrepreneurial activity.

EntrepreneurshipEntrepreneurshipEntrepreneurs 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 entrepreneur.

Essentially what can work, you have to try.

What is EntrepreneurshipWhat is EntrepreneurshipWikipedia 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 Why do Small Business’s Fail?Fail?Growing too fastFailing to track your financesOverspendingLack of reserve capitalPoor choice of locationPoor executionAn inadequate business planFailing to change with the timesIneffective marketingUnderestimating the competition

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.

What is Developmental What is Developmental Lending?Lending?

How do Lenders deliver on their How do Lenders deliver on their promise to assist you?.....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?

Proof of experience, skills and self confidence to successfully carry out your project.

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 What the Lender will be looking for?for?

For new and existing companies:Forecast for next 2 yearsA cash flow analysis that describes your

forecasts: shows the seasonal fluctuations in your business and prescribes the need for capital

Amount of personal investment (money/equipment)

Risk sharing strategy: with a third party, who is taking all the risk.

What the Lender will be looking What the Lender will be looking for?for?

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 residents.

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 corporation.

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.

Typical Loan CriteriaTypical Loan Criteria

Character/CreditCapitalCapacityConditionsCollateral

5 C’s of Lending5 C’s of Lending

Questions on Lending or Questions on Lending or Services?Services?

Thank YouThank You