2014-15
Annual Report
National Aboriginal Capital Corporations Association
NACCA’s Members 2014-15
The National Aboriginal Capital Corporations Association is a Canadawide network of Aboriginal Financial Institutions dedicated to stimulating
economic growth for First Nations, Métis and Inuit people by promoting and
underwriting Aboriginal business development.
Aboriginal Business and Community Development Centre
Akaitcho Business Development Corporation
Alberta Indian Investment Corporation
Apeetogosan (Métis) Development Inc.
Arctic Co-operative Development Fund
Atuqtuarvik Corporation
Baffin Business Development Corporation
Beaver River Community Futures Development Corporation
Burns Lake Native Development Corporation
Cedar Lake Community Futures Development Corporation
Community Futures Development Corporation of Central Interior First Nations
Clarence Campeau Development Fund
Community Futures Treaty Seven
Corporation de développement économique montagnaise
Dakota Ojibway Community Futures Development Corporation
Däna Näye Ventures
Deh Cho Business Development Centre
Eeyou Economic Group/ Community Futures Development Corporation Inc.
First Peoples Economic Growth Fund Inc.
Haida Gwaii Community Futures
Indian Agricultural Program of Ontario
Indian Business Corporation
Kakivak Association
Kitayan Community Futures Development Corporation
Kitikmeot Community Futures Inc.
Kivalliq Business Development Centre
Louis Riel Capital Corporation
Métis Voyageur Development Fund Inc.
NWT Métis Dene Development Fund
Native Fishing Association
Nishnawbe Aski Development Fund
North Central Community Futures Development Corporation Manitoba
Northwest Manitoba Community Futures Development Corporation
Northern Enterprise Fund Inc.
Nunavik Investment Corporation
Ohwistha Capital Corporation
Rainy Lake Tribal Area Business and Financial Services Corporation
Sahtu Business Development Centre
Saskatchewan Indian Equity Foundation Inc.
SaskMétis Economic Development Corporation
Settlement Investment Corporation
SOCCA National
(Native Commercial
CreditCorporations
Corporation)Association
Aboriginal Capital
Southeast
Community
Futures
Development
Corporation
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2014-15 Annual Report
Tale’ Awtxw Aboriginal Capital Corporation
Tecumseh Development Corporation
Tewatohnhi’saktha Business Loan Fund
Thebacha Business Development Services
Tribal Resources Investment Corporation
Tribal Wi-Chi-Way-Win Capital Corporation
Two Rivers Community Development Centre
Ulnooweg Development Group Inc.
Visions North Community Futures Development Corporation
Wakenagun Community Futures Development Corporation
Waubetek Business Development Corporation
Map of Aboriginal Financial Institutions
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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Table of Contents
i
NACCA’s Members 2014-15
1Introduction
15
2
Highlights of the Aboriginal Financial Institutions in 2014
3
I. Aboriginal Entrepreneurship Program Results
8
II. Corporate Development
10 III. Financial Results
14
IV. Corporate Information
National Aboriginal Capital Corporations Association
2014-15 Annual Report
Introduction
The National Aboriginal Capital Corporations Association (NACCA) is the
national voice serving a Network of Aboriginal Financial Institutions (AFIs)
from coast to coast to coast.
The 2014-15 year brought some banner moments and an end to the on-going
transitional activity that prepared the Network to undertake new strategic
directions and lay the groundwork for renewal and future business.
The most noteworthy moment was the celebration of the AFI Network’s
success when collectively, the AFIs surpassed the $2 Billion milestone
in providing developmental loans to Aboriginal entrepreneurs since the
network was founded. This achievement attests to the important role the
AFIs and Aboriginal entrepreneurs play in the economy, in growing Aboriginal
businesses, and in creating prosperity in communities across the land.
The year also saw the completion of program renovation discussions and
activity and a change in focus with the launch of Aboriginal Developmental
Lending Assistance, a product designed by AFIs and NACCA to offset the high
costs of developmental lending. This performance-based lending support
initiative enhances the capacity of the AFIs to support Aboriginal small and
medium enterprises. Almost half of NACCA’s members used the Aboriginal
Developmental Lending Assistance subsidy to offset the costs of providing
626 developmental loans to Aboriginal entrepreneurs, and exceeded the
performance targets.
Another important network result in 2014-15 was achieved when the AFIs
reached consensus on the delivery mechanism for the Aboriginal Business
Financing Program, the equity financing product, which NACCA will
administer. Nation-wide coverage will be achieved through the collaboration
of regional groups of AFIs to ensure knowledgeable and responsive service to
entrepreneurs based on local needs.
Two significant governance enhancements were also accomplished. The
Board of Directors established the Aboriginal Entrepreneurship Program
Committee, as an advisory body that will contribute expertise on policy
development for NACCA’s suite of lending products. Second, the work of the
Board of Directors on the organization’s by-laws led to the introduction of the
National Nominating Committee to oversee a competency-based selection
process for Board Directors which will strengthen the organization as it begins
its next phase of growth.
With all of this work now finished, NACCA is well positioned to support the AFI
network as it continues to grow financial professionals while strengthening
the capacity of the small and medium size businesses in First Nation, Métis
and Inuit communities throughout Canada.
National Aboriginal Capital Corporations Association
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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Highlights of the
Aboriginal Financial Institutions in 2014
Record year for lending
• Aboriginal Financial Institutions surpassed $2 Billion in loans to Aboriginal entrepreneurs since the AFIs were
established, providing over 38,000 small business loans to Aboriginal entrepreneurs.
• Repayment of loans by Aboriginal small businesses to AFIs is now beyond $1.6 billion.
Investment in Aboriginal businesses
The results achieved in the network:
• Over 1,361 loans were provided to Aboriginal businesses in 2013-14, totalling $111 million.
• The 2013-14 consolidated AFI gross loan portfolio is comprised of 4,468 loans, totalling $311 million.
• The total direct economic impact of AFI activity was $305 million.
Growing Aboriginal business development and creating jobs
• A total of 4,257 full-time equivalent (FTE) jobs were created and maintained by new small business loans.
• Loans to start-up businesses created 1,200 new FTE jobs and new loans to existing businesses created and
maintained a further 3,057 FTE jobs.
• The consolidated AFI gross loan portfolio supports 13,000 FTE jobs on a continuous basis.
2Billion
in loans
4,257
jobs created
Data is drawn from the 2014 AFI Portrait published by NACCA and is derived from a comprehensive analysis of 2013-14 financial statements shared
with NACCA by its members, AFIs.
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National Aboriginal Capital Corporations Association
2014-15 Annual Report
I. Aboriginal Entrepreneurship Program
Results
NACCA continued to build a strong corporate foundation that focused activities on the development of key policy
frameworks, governance structures and the launch of a new product, Aboriginal Developmental Lending Assistance.
NACCA’s Technical Advisory Group concluded an examination of the transfer of the Aboriginal Business Financing
Program to NACCA as the program manager.
The Aboriginal Entrepreneurship Program (AEP) is a comprehensive range of complementary products designed
to strengthen the network of Aboriginal-controlled developmental lending institutions and to foster increased
availability and affordability of capital for developmental lending.
The Aboriginal Entrepreneurship Program lending products and services include:
• Aboriginal Developmental Lending Assistance
• Aboriginal Capacity Development Program
• Interest Rate Buy-Down
• Enhanced Access Loan Fund
• Aboriginal Business Financing Program (implemented over 2015-16)
Aboriginal Developmental Lending Assistance
In 2014-15, NACCA successfully rolled out the Aboriginal Developmental Lending Assistance program, an AFINACCA-designed initiative to enhance AFI sustainability. Robust risk measurement and management instruments
were designed including new application processes to assess lending risk and client needs. The AEP Policy and
Procedures manual was developed, refined, and translated into French.
Aboriginal Developmental Lending Assistance Results
• 23 AFIs utilized the lending assistance product with approved claims nearly $4M.
• 1,910 jobs were created/maintained with ADLA with an overall investment of $47,450,119 from Aboriginal
entrepreneurs, commercial, and government sources.
• Investment per job was $24,843.
• 287 on reserve businesses accessed ADLA while 230 off reserve businesses accessed the ADLA product.
• Rural businesses accounted for the majority of ADLA claims (327), with urban businesses next (227), and remote
businesses (68) last.
Aboriginal Developmental Lending Assistance Borrowers
• ADLA was accessed by 482 First Nation entrepreneurs, 137 Métis entrepreneurs, and one Inuk entrepreneur.
• 483 of the borrowers were men, 118 were women, and 79 borrowers were youth under the age of 36 years.
• The majority of ADLA supported entrepreneurs used the loans to expand their business (392), start a new
business (141) or acquire a business (48).
• Two-thirds (438) of the businesses that received ADLA lending support were sole proprietor companies with the
remainder partnerships and limited companies (200), including thirty-seven that are First Nation owned.
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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Aboriginal Developmental Lending Assistance Performance Measures 2014-15
Target
Total
500
626
Value ($) of developmental loans supported
$3,500,000
$33,606,125
Value ($) of funds committed and disbursed
$4,470,000
$3,871,903
Total number of developmental loans supported by ADLA
Aboriginal Developmental Lending Assistance Leverage Details 2014-15
$12,971,011.04
$24,298,478.04
Client contribution to loan
Commercial debt financing
$8,918,413.15
$4,551,583.00
Other government
contributions
Non-repayable contribution
to loan
Aboriginal Developmental Lending Assistance Job Creation/Maintenance
Full time
Part time
Seasonal
Total
Projected Aboriginal jobs created
370
184
94
648
Existing Aboriginal jobs maintained
711
285
66
1062
Total Aboriginal jobs created/maintained
1710
Projected non-Aboriginal jobs created
83
49
25
157
Existing non-Aboriginal jobs maintained
471
64
7
542
Total non-Aboriginal jobs created/maintained
4
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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The Aboriginal Capacity Development Program
The product is designed to enhance the role of AFIs to optimize efficiencies and increase capacity to engage unused
capital for developmental lending.
The product enables AFI employees and board members to obtain education and training focused on the
effective and consistent delivery of developmental lending across the Network. ACDP funds individual training and
professional development opportunities as well as business support requirements identified by AFIs.
Aboriginal Capacity Development Program Results
• ACDP was accessed by most of NACCA’s members, 42 AFIs.
• ACDP supported the education and training of 343 AFI employees and 241 board members. Groups of AFIs
collaborated to provide shared training opportunities when possible.
Aboriginal Capacity Development Program Professional Development
AFI employees received training on:
• loan management systems training and customization for ADLA products
• cash flow workshops
• policy development
• community fund development
• enhanced management training
• human resources management
• standard administrative and audit procedures for financial institutions
• investment of surplus funds
• strategic planning
• board training on legal responsibilities
• loan policy
• e-commerce
• enhanced management training, human resources management, administrative or audit procedures for financial
institutions
Aboriginal Capacity Development Program Performance Measures 2014-15
Target
Total
Number of AFIs accessing professional development
training
35
42
Number of AFI staff and board receiving professional
training
360 employees
250 board
343 employees
241 board
Value ($) of funds committed
$ 1,300,000
$ 1,274,934
Value (%) of funds committed
100%
98 %
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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Interest Rate Buy-Down Program
The product is designed to encourage an increase in developmental lending to Aboriginal businesses by providing
a subsidy to qualified AFIs wishing to secure additional loan funds from sources of capital such as banks, trust
companies, and private lenders.
Interest Rate Buy-Down Results
• Twelve AFIs have lines of credits, with 6 AFIs drawing down on these lines of credit.
Interest Rate Buy-Down Performance Measures 2014-15
Target
Total
Number of active credit lines
13
12
Value ($) of active credit lines
$ 7,600,000
$ 17,357,476
Value ($) of active credit lines drawn down
$ 4,000,000
$ 4,611,803
Value ($) of developmental loans made
$ 1,600,000
$ 4,611,803
Enhanced Access Loan Fund
The Enhanced Access Loan Fund provides existing AFIs access to capital and financial support for administrative
costs, to provide commercial lending in these areas that may not be covered by a specific service area.
Enhanced Access Loan Fund Results
•
Four AFIs accessed the Enhanced Access Loan Fund that resulted in 17 developmental loans.
Enhanced Access Loan Fund Performance Measures 2014-15
Target
Total
$ 8,000,000
$ 9,010,234
Number of AFIs accessing product
3
4
Number of developmental loans supported
10
17
Value ($) of funds committed and disbursed
$ 950,000
$ 1,262,052.30
Value of EA Gross Loan Portfolio
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National Aboriginal Capital Corporations Association
2014-15 Annual Report
Aboriginal Business Financing Program
In 2014, the Technical Advisory Group, comprised of general managers from the network and the CEO prepared
the business case, business plan, and performance management framework that would enable the organization to
proceed with management and delivery of the Aboriginal Business Financing Program (ABFP).1 The plan outlined
options, design principles, and the business case.
The ABFP product delivers non-repayable contributions to a maximum of $99,000 for Aboriginal entrepreneurs and
$250,000 for community-owned Aboriginal businesses. The product provides equity, quasi-equity, and business
support services to enable Aboriginal clients to expand, acquire or startup businesses and to secure additional third
party debt financing.
A plan for nation-wide coverage was achieved through the collaboration of regional groupings of AFIs to ensure
knowledgeable and responsive service based on local needs. The AFI regional leads will coordinate the regional
activities and program delivery in 2015-16.
Regional collaborating groups of AFIs provided feedback on fund allocations, development of internal policies and
procedures consistent with the national policy framework, and supporting NACCA with respect to performance
management and quality assurance.
1
Formerly delivered by Aboriginal Affairs and Northern Development Canada as the Program Delivery Partners initiative.
National Aboriginal Capital Corporations Association
2014-15 Annual Report
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II. Corporate Development
NACCA continued to build a strong
corporate foundation and grew
its internal capacity to provide an
effective national support role
for its membership. Key research
partnerships were established to
generate evidence from which to
make informed decisions and to
better understand the AFI capital
needs and impacts of lending
practices.
Advocacy
Capital Attraction Tool Pilot Project
NACCA launched a pilot project with the goal of securing private sector investment to enhance AFIs sustainability.
Deloitte LLB was engaged to undertake a study to examine options for developing a fund model and treasury design
to attract private sector capital.
The Capital Attraction Tool Pilot Project is designed to assist AFIs to access additional low-cost loan capital to service
the increased demand for capital from Aboriginal small and medium enterprises and to maintain adequate liquidity.
NACCA will continue this work-in-progress and further assess the tool’s viability and to gauge the securitization and
return on investment requirements.
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National Aboriginal Capital Corporations Association
2014-15 Annual Report
Some Lessons Learned from Capital Attraction Tool Pilot Project
• The capital needs for Aboriginal small businesses remain great. Analysis conducted by NACCA revealed that out
of 53 AFIs, 18 have a need for additional, affordable capital in the amount of $78,058,927.
• The need for capital for developmental lending amongst certain AFIs was significant and there is limited liquidity
in the AFI system that could be used to invest in such a fund.
• The IRB product is essential for some AFIs to leverage different sources of capital and that IRB must continue to
be available to AFIs in the future.
• Investors view the Government of Canada’s support for such an initiative to be important for the duration of the
fund’s life, and want evidence of the long-term commitment.
General Managers Meeting
The Network celebrated the $2 billion lending milestone with the AFI General Managers, Minister of Aboriginal Affairs
and Northern Development and other Members of Parliament at a reception held in Gatineau, Quebec during the
2014 General Managers’ Meeting. The General Managers’ Meeting also featured a session on social impact financing,
designed to connect AFIs with mainstream experts in social impact financing, featuring presentations by AFIs and the
MaRS Centre on Social Impact Investing.
Partnerships
Carleton University’s Centre for Community Innovation worked with the Aboriginal Financial Officers Association to
investigate thriving Aboriginal communities. NACCA partnered with Carleton University to build on this research and
trace the impact AFIs have by providing financial and other assistance to Aboriginal entrepreneurs in selected thriving
First Nation communities. The research will tell the story of business development and social change related to the
activities of AFIs to be published in 2015-16 and shared with AFIs.
Governance
AFI members approved amendments to By-law No. 5 during the 2014 Annual General Meeting, to respond to
Network proposals and changes to the Canada Not-for-Profit Corporations Act. These new measures will enable the
Network to adopt a competency-based selection process for the election of Board members, and reduce the size of
the Board of Directors to create greater efficiencies.
The Board of Directors of the National Aboriginal Capital Corporations Association also established the inaugural
National Nominating Committee as it continued its work to adopt a competency-based selection process.
Other important governance activities undertaken by the NACCA Board of Directors in 2014 included creating the
Aboriginal Entrepreneurship Program Committee, to advise the Board on necessary policy amendments to the
framework that governs all funding delivered by NACCA.
Finally, in bringing to an end the last five years of program renovation, NACCA’s Board of Directors engaged in a
strategic planning session using an enterprise-wide risk management approach to review the Board’s stewardship
and duty of care. This work set the stage for developing the strategic priorities for the period of 2015 to 2020.
In summary this year marked an end as well as new beginnings.
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III. Financial Results
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IV. Corporate Information
National Aboriginal Capital Corporations Association’s
Board Of Directors
Shelly Anderson
Chris Googoo
Harry J. Morrisseau
Alberta Region
Atlantic Region
Northern Ontario Region
Apeetogosan (Métis) Development
Ulnooweg Development Group Inc.
Rainy Lake Tribal Area Business and
Corporation
Financial Services Corporation
Ike Haulli
Elaine Chambers
Nunavik/Nunavut Region
Muriel Parker
Treasurer, Yukon Region
Baffin Business Development
Secretary, Manitoba Region
Däna Näye Ventures
Corporation
Louis Riel Capital Corporation /
Cedar Lake Community Futures
Geri Collins
Paul LaPage
British Columbia Region,
Quebec Region
Warren Sault
Community Futures Development
Nunavik Investment Corporation
Chair, Southern Ontario Region
Corporation of Central Interior First
Nations
Two Rivers Community
Linda Martin
Development Centre
Northwest Territories Region
Donald E. Dugan
Thebacha Business Development
Sandy W. Wong
Vice-Chair, Saskatchewan Region
Services
British Columbia Region
SaskMétis Economic Development
Tale’Awtxw Aboriginal Capital
Corporation
Corporation
Technical Advisory Group
Aboriginal
Entrepreneurship
Program Committee
Francine Whiteduck
Terry Brodziak
Brian Davey
Michael Ivy
Kevin Schindelka
Alan Park
David Vince
Jean Vincent
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CEO, NACCA
Saskatchewan Indian Equity Foundation Inc.
Nishnawbe Aski Development Fund
Apeetogosan (Métis) Development Inc.
NACCA
Tribal Wi-Chi-Way-Win Capital Corporation
Two Rivers Community Development Centre
Société de crédit commercial autochtone
National Aboriginal Capital Corporations Association
2014-15 Annual Report
Lucy Pelletier, Chair
Jane Aupaluktuq
Paul Devillers
Bill Kordyback
Don Sieben