Purpose
This Act is to provide Nisga’a business initiatives with an alternative source of business development funds. Our focus is to work with Nisga'a to fund businesses and economic development activities that are financially viable and contribute to the well-being (sustainable employment) and wealth generation of the Nisga'a, leveraging other resources and investors as much as possible.

Under the Act, all funding requests will be reviewed in the same manner required by the banks and lending institutions. Each business development proposal will be assessed on its own viability and merits. We also recognize that some planning / feasability is sometimes required to launch a new project.

Eligibility:

• Nisga‚Äôa Citizens;
• Corporations, societies, partnerships or trusts in which Nisga‚Äôa Citizens hold a controlling interest as shareholders, members, partners or beneficiaries;
• A Nisga‚Äôa Village;
• Nisga‚Äôa Corporations;
• A Nisga‚Äôa Urban Local, or
• Any other person authorized by regulation.

Client’s Equity:
All requests will take into consideration the Client’s cash equity and equipment which may be incorporated into a business proposal. The equity required is as follows:

• 5% for Nisga'a Youth;
• 10% for Nisga'a Citizens;
• 20% for Nisga'a corporations, Partnerships or trusts in which Nisga'a Citizens hold a controlling interest as shareholders, members, partners or beneficiaries;
• 20% for Nisga'a Societies, Nisga'a Villages and Nisga'a Urban Locals

Loan Amounts:
Loan request will be processed using the criteria set out in the Business Development Act. (the loan portfolio is in development with a designated business development office/s):

• To be administered by designated business development office/s
• To follow the lending policies of the designated business development office/s

Contribution and Grant Amounts:
A contribution or grant request will be reviewed to determine the business merits. Policy is being developed and will take into consideration the nature of the requests. Funding requests in this area will take into consideration the options of leveraging funds from other sources of funds as well the client’s equity.

Loan / Contribution Evaluation Criteria:
All loan / contribution requests will be evaluated on receipt of a client’s current and completed business plan or detailed proposal. Evaluation Criteria will be based on, but not limited to:

• The financial viability of a client‚Äôs business plan;
• The economic benefits created by the business;
• The amount of money remaining in the Economic Development Fund; ‚Ä¢ Identification of available security to pledged for loan / contribution request;
• The client‚Äôs equity investment (Equity is ‚Äúcash or other tangle assets)
• The client‚Äôs credit rating and net worth statement;
• The client‚Äôs training and relevant credentials for the proposed industry;
• Client‚Äôs Resume;
• The client‚Äôs potential to access (leverage) alternative sources of financing;
• Any other relevant information to support the client‚Äôs business proposal;

Loan / Contribution Approval Process:
Business plans submitted to the Economic Development Manager, Bert Mercer, will be reviewed and analyzed for business viability and feasibility. Recommendations to approve or decline will then be made to the Director of Finance.

Loan / Contribution Security
The Nisga’a Nation must require the person receiving a loan from the business development fund to enter into an agreement with, and to grant any security to, the Nisga’a Nation to ensure repayment to the Nisga’a Nation of the loan, before the loan or loan installment is advanced.