PROGRAM PURPOSE

Grants under this program are intended to support business development and expansion within Saskatchewan through funding a portion of initial start-up capital and operating expenditures in businesses within key sectors of the Saskatchewan economy.

APPLICANT ELIGIBILITY

To be eligible for support, an applicant must be a Canadian resident of Aboriginal ancestry living in Saskatchewan or a Canadian corporation, partnership, association or other legal entity that is majority-owned or controlled by Canadian residents of Aboriginal ancestry living in Saskatchewan. Businesses with Aboriginal and Non-Aboriginal partners are eligible for funding provided the Aboriginal partner holds the majority ownership position and meets the other program requirements.

A Canadian of Aboriginal ancestry is a person who is:

• a Status Indian;
• a Non-Status Indian;
• an Inuk; or
• a Métis.

Evidence of ancestry will include self identification on the application form and any other available documentation (e.g. Treaty cards for Status Indians, MNS membership cards for Métis). As evidence of residency, applicants will be required to provide current and previous addresses, and length of time at each location, as well as copies of health cards or other Saskatchewan based identification.

Legal entities associated with Indian Bands, Tribal Councils, Métis organizations and communities are eligible to apply for support. Evidence of legal entity status, such as a corporation’s Articles of Incorporation, must be provided as part of the application process.

Applicants that intend to locate a business on-reserve must obtain a Band Council Resolution in support of the proposal.

If the involvement of the applicant is deemed critical to the success of the business, the applicant must be actively involved in the business on a day-to-day basis. Exceptions may be made based on the seasonality of a business (for example, a client may have a full time job during the off-season of a seasonal tourist destination).

GRANTS LIMITED TO KEY STRATEGIC SECTORS

The Program provides grants aimed at enhancing Aboriginal involvement in the following key strategic sectors of the province:

Energy

To be eligible for support, an initiative must demonstrate that business activities would either derive at least 50% of its revenues from energy sector activities; or receive at least 50% of the value of its products or services from the energy sector.

Examples of potential opportunities in the energy sector include:

• Wind-power
• Ethanol
• Oil and gas exploration
• Transportation of oil and gas
• Environmental assessment and monitoring
• Site reclamation and restoration

Mining

To be eligible for support, an initiative must demonstrate that business activities would either derive at least 50% of its revenues from mining activities; or receive at least 50% of the value of its products or services from the mining sector.

Examples of potential opportunities in the mining sector include:

• Mineral exploration or extraction
• Transportation of minerals
• Environmental assessment and monitoring
• Site reclamation and restoration

Forestry

To be eligible for support, an initiative must demonstrate that business activities would either derive at least 50% of its revenues from forestry activities; or receive at least 50% of the value of its products or services from the forestry sector.

Examples of potential opportunities in the forestry sector include:

• Logging and lumber businesses (non-retail)
• Transportation of forestry products
• Processing forest resources into higher value, consumer-ready products such as cabinets, windows, furniture, doors, building components, remanufactured products and pallets used for shipping
• Wildcrafting
• Specialty forest products, such as:
  • Wild berries, herbs, spices, mushrooms and peat moss
  • Pine needles, which produce essential oils
  • Mosses and lichens; tree bark for use in crafts
• Harvesting burned timber
• Re-manufacturing and specialty wood products:
  • Oriented Strand Board industry, paper and secondary manufacturing of wood-based products such as millwork products
  • Portable sawmills

Value-Added Agriculture

To be eligible for support, an initiative must demonstrate that business activities would either derive at least 50% of its revenues from value-added agriculture activities; or receive at least 50% of the value of its products or services from the value-added agriculture sector.

Examples of potential opportunities in the value-added agriculture sector include:

• Pulse crop products
  • Processed packaged food products
• Meat processing and slaughtering
  • Beef, pork and chicken processing
  • Specialty meat processing
• Animal feeds
  • Commercial pre-mixes, bean/pea protein, processed forages
  • Other animal feed ingredients
• Oilseed processing
  • Edible oils from canola
• Fruit products
  • Wines, jams, pie fillings, syrups
• Specialty and gourmet foods
  • Organic products from grains and livestock
  • Specialty livestock
• Nutraceuticals and functional foods
  • Herb or spice-based products
  • Dietary supplements and medicinal herbs
• Non-food and non-traditional food products
  • Dermaceuticals (oats)
  • Detergents (canola)
  • Biodegradable lubricants, bio-diesel fuel
  • Hemp or flax fibre-based products
  • Pharmaceuticals

Manufacturing

The manufacturing sector comprises companies primarily engaged in the transformation of materials into new products. These products may be finished (i.e. ready to be used or consumed) or semi-finished (i.e. a material for another business to use in further manufacturing). Manufacturing may take place in factories or in workers' homes, using either machinery or hand tools.

Examples of potential opportunities in the manufacturing sector include:

• Arts and crafts
• Electronics and instrumentation
• Flour goods and bakery mixes
• Beef, pork and chicken products
• Jams, jellies and other preserves
• Paper, furniture, cabinets, millwork and flooring
• Specialty vehicles such as ambulances, highway trailers, recreation vehicles and automotive accessories
• Agricultural equipment
• Mining and industrial equipment
• Satellite and landline communications technology
• CATV and wireless telecom products
• Contract manufacturing services for telecommunications, satellite, military and aviation markets
• Chemicals

Aboriginal-Themed Tourism

Tourism businesses will be limited to Aboriginal-themed tourism destinations and attractions. Examples include eco-tourism, nature/wildlife viewing, and cultural museums. Any business expecting to derive a significant portion of its revenues from Aboriginal-theme tourist ventures is eligible for support. Short-term events such as festivals and powwows are not eligible for support, since they are not ongoing commercial activities.

ELIGIBLE INITIATIVES

Eligible costs include initial project costs such as:

1. capital costs (land, buildings, equipment, leaseholds, etc.)
2. inventory costs
3. pre-operating costs
4. marketing costs
5. purchase of shares to acquire an existing business as a going concern
6. costs involved with infrastructure (such as access roads, sewer and water lines, etc.)
7. costs of engaging consultants and/or qualified professionals (lawyers, accountants, etc. for business plans, business skills training and mentoring, building inspections, environmental inspections, building and equipment appraisals, etc.)
8. financial and business service costs (information technology, telecommunications, website development, accounting systems, etc.)

Note: This list of eligible costs is not intended to be all inclusive. Other justified expenditures will be considered on a case by case basis.

• Eligible costs apply to new businesses, acquisitions of existing businesses, and expansion of existing businesses.
• Businesses must be located in Saskatchewan.
• The business may operate year round or seasonal.

INITIATIVES NOT ELIGIBLE FOR FUNDING

• Travel, sustenance, lodging, conferences, seminars, convention and like costs
• Residential real estate
• Non-arms length business acquisitions
• Businesses not located in Saskatchewan
• Refinancing, repaying existing debt or dividend payments

FUNDING CRITERIA

• There are two steps to apply for funding. Initially, applicants will be required to complete and submit a general application. Those chosen for further consideration will be required to submit a comprehensive business plan demonstrating the long-term viability of the proposal and the ability to create jobs. Where required, the program may fund up to 75% of the cost of business plan development.
  
• Applicants will be required to list total financial requirements as part of a business plan which could include personal equity, borrowings from financial institutions, CCDF, SIEF, etc., private and public equity financing or funding from Federal Government Programs.
  
• For businesses owned by individual entrepreneurs or private corporations, grant funding will be set at a maximum of $25,000 on condition that the provincial contribution will not exceed 35% of the total financial package.
  
• For businesses owned by legal entities associated with Indian Bands, Tribal Councils, Métis communities and institutions, grant funding will be set at a maximum of $50,000 on condition that the provincial contribution will not exceed 35% of the total financial package.
  
• In a case of businesses with Aboriginal and Non-Aboriginal partners, the maximum funding will be prorated based on the level of Aboriginal ownership and control. This requirement will be waived in the case of a marital relationship where the business is clearly a family business.
  
• 10% of total financial requirements will be sourced from applicant’s own equity through cash and other asset injections. In the case of youth (ages 18-35) this requirement drops to 5%. The value of non-cash asset injections must be appropriately substantiated through an independent appraisal by a qualified person. Cash injections may come from a variety of sources (personal savings, friends, relatives, bands, etc.) provided that there are no repayment terms and no business related assets pledged as security. Applicants will be required to provide bank documentation as proof of available cash. 

APPROVAL OF PROJECTS AND PAYMENT

Based on a review of applications, SIEF and CCDF will make recommendations for funding to the Government of Saskatchewan through Saskatchewan First Nations and Métis Relations (FNMR). FNMR will make final funding decisions and disburse monies to approved applicants.

LIMITED FUNDING FOR RELATED INITIATIVES

• Funding is also available from FNMR for related initiatives other than capital and operating costs. This includes building community capacity in the key sectors and assisting applicants in the development of their proposals through feasibility studies and market analysis, etc. Where required, the program may fund up to 75% of these costs up to a maximum of $10,000. There may be exceptions but these would be considered on a case by case basis.
  
• To assess merits and strengths, proposals should include such information as rationale, its connection to one of the strategic sectors, potential economic impact and other benefits, involvement of other communities/partners, breakdown of costs and sources of funding, timelines, etc.
  
• Applications of this type should be submitted directly to FNMR (see the contact information below).
   

CONTACT INFORMATION

For more information about this program please contact:

Saskatchewan First Nations and Métis Relations (FNMR)
210 – 1855 Victoria Avenue
REGINA, SK S4P 3T2
Toll-free: 1-866-240-4484
Phone: (306) 798-7800
Fax: (306) 787-6336

Métis individuals, and legal entities associated with Métis organizations and communities can submit applications to:

Clarence Campeau Development Fund (CCDF)
2158 Airport Drive
SASKATOON, SK S7L 6M6
Phone: (306) 657-4870
Toll-Free: 1-888-657-4870
Fax: (306) 657-4890
Website: http://www.clarencecampeau.com/

Status Indians, Non-Status Indians, Inuit, and legal entities associated with Indian Bands and Tribal Councils can submit their applications to:

Saskatchewan Indian Equity Foundation (SIEF)
Asimakaniseekan Askiy Reserve
202 Joseph Okemasis Drive
SASKATOON SK S7N 1B1
Phone: (306) 955-4550
Fax: (306) 373-4969
Website: http://www.sief.sk.ca/