nature, trade and industry show rouyn-noranda, march 23 and 24,2011

Nature, Trade and Industry Show

Rouyn-Noranda, March 23 and 24,2011

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“Possible sources

of financing for

private enterprise”

Welcome to the Conference

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Laurent Odjick, External Development Officer

• Laurent Odjick is a member of the Algonquin Nation from the community of Kitigan Zibi

• He holds a Bachelor of Business Administration and joined the ranks of the SOCCA team in May 2005 in the capacity of External Development Officer.

Presentation of the Speaker

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• SOCCA is a non-profit corporation firmly established within the First Nations of Quebec since 1992.

• SOCCA offers financial products and services as well as coaching for the start-up, acquisition and expansion of Aboriginal businesses.

Our Profile

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Our Clientele

• Serving First Nations

– Abenaki– Algonquin– Atikamekw– Huron-Wendat– Micmac– Cree (ABDP only)– And the members of the Native

Alliance of Quebec

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• We offer

1. Term loans

2. Non-refundable contributions (grants)

3. Coaching

Our Products and Services

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Our Products and Services (continued)

Term Loan

Maximum loan capacity of $400 000 

• The loan amount is determined on the basis of the borrower’s ability

to repay

• Moreover, the value of collateral security must be sufficient to

reasonably cover the amount borrowed

.

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Our Products and Services (continued)

Term loan (continued)

Collateral security used to guarantee a loan generally consists of various business assets.

Land and Building Max. 70%

Equipment Max. 70%

Inventory Max. 50%

Working capital 0%

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Our Products and Services (continued)

Term loan (continued)

Capital outlay

• Minimum 10% of the total cost of the project

• A transfer of assets may be considered as capital outlay

Interest rates• Competitive and comparable to traditional financial institutions• Varies depending on the risk associated with the project

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Our Products and Services (continued)

Term loan (continued)

Processing delay

• Average amount of time required per file

• Important items to consider to ensure that files are processed

rapidly

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Term loan (continued)

• Analysis of the internal and external environment of the business

• Analysis of the project• Financial analysis• Conclusion and recommendations

Lenders’ Decision Making Criteria

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Our Products and Services (continued)

Non-refundable contribution (grant)

• Since 2001, in addition to offering term loans, SOCCA has acted in the capacity of external services agency in partnership with the Aboriginal Business Development Program (ABDP) of Indian and Northern Affairs Canada (INAC)

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Our Products and Services (continued)

Non-refundable contribution (grant)

Depending on the type of project, ABDP can provide financial assistance for the achievement of the following activities

• Acquisition and start-up of a business• Development/growth (expansion) of a business• Operating costs • Marketing• Business plan and preliminary studies (equipment evaluation)• Support to the entrepreneur (coaching, accounting)

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Our Products and Services (continued)

Non-refundable contribution (grant)

What is the maximum amount to which you are entitled?

• Entrepreneurs may individually receive up to $99 999 in financial

assistance

• In the case of community businesses (band councils), this assistance

can reach up to $1 000 000

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Our Products and Services (continued)

Non-refundable contribution (grant)

• The level of financial assistance depends on several factors 

– Nature of the project – Scope of the project– Availability of other sources of financing– Repercussions and economic advantages of the project– Financing needs (see next page)

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Our Products and Services (continued)

Non-refundable contribution (grant)

How do we evaluate the need for a non-refundable contribution?

• Capacity of the individual and/or business to obtain the maximum possible loan

(analysis of the possibility of refinancing of the applicant’s assets)

• A verification is made with the financial institution to ensure that the authorized

loan amount is indeed the maximum amount

• The aim of the program is to meet financing needs (last resort)

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Our Products and Services (continued)

Non-refundable contribution (grant)

Minimum capital outlay required

• Minimum 10% for young entrepreneurs (aged 35 or under)

• Minimum 15% for individuals aged 36 or older

• The amount required depends on each individual’s equity

(see example that follows)

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Our Products and Services (continued)

Equity(individual, partnership,

company) Percentage of capital outlay required

Under $25 000 Young entrepreneur: 10%Entrepreneur (over age 35): 15%

$25 001 to $100 000 Young entrepreneur: 11% to 15%Entrepreneur (over age 35): 16% to 20%

$100 001 to $250 000 Young entrepreneur: 16% to 20%Entrepreneur (over age 35): 21% to 25%

$250 001 to $500 000 Young entrepreneur: 21% to 25%Entrepreneur (over age 35): 26% to 30%

$500 001 to $1 000 000 Young entrepreneur: 26% to 30%Entrepreneur (over age 35): 30% to 35%

Policy regarding requisite capital outlay

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Our Products and Services (continued)

Non-refundable contribution (grant)

Project Costs Potential Contribution

Development of a business plan, marketing plan or feasibility study

Up to 75%

Start-up, expansion or acquisition of a business

Between 30% and 50%

Implementation of marketing activities Up to 60%

Project management Up to 75%

Advice from accountants and other professionals after the business is launched

Up to 75%

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Our Products and Services (continued)

Non-refundable contribution (grant)

When the project is approved• The non-refundable contribution must be claimed as the project

advances

Example

The cost of the project is $10 000 and the authorized ABDP contribution rate is 30% of admissible costs. You will receive a refund of $3 000 when all expenses have been incurred

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Our Products and Services (continued)

Non-refundable contribution (grant)

Eligibility criteria

• Be an Aboriginal• Have experience and training in the domain• Requisite financial resources available (capital outlay)• Prepared for full-time involvement in the business• Impeccable credit history• Present a complete business plan in compliance with ABDP

guidelines• Business not involved in the following sectors of activity (games of

chance, sex, alcohol, tobacco)

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To apply, you must send us

1. Duly completed “Statement of Intent” form (ABDP)

2. Duly completed “Declaration of Applicant” form (SOCCA)

3. Duly completed “Personal Balance Sheet”

4. Copy of your Indian Status Card

5. Copy of your résumé

6. Bank statement indicating your capital outlay

7. Business plan (if already prepared)

8. Copy of loan approvals or other contributions (if already on hand)

9. If the business is in operation, financial statements for the past three years along with the most recent interim financial statements

Presenting an Application for Financing

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Why apply to SOCCA?

• Unique expertise adapted to the particular needs of First Nations

• SOCCA has a multidisciplinary team of nine employees and works

with financial partners to meet the particular needs of the Aboriginal

market

Our Team

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Our team

Jean Vincent, CA, CGA, GFACPresident and General Managervincentj@socca.qc.ca

Martin Légaré, B.A.A.Director of Administration and Operationsmlegare@socca.qc.ca

Elyse BoisvertAdministrative Assistanteboisvert@socca.qc.ca

Jean-Conrad DussaultAccountantcdussault@socca.qc.ca

Mario BédardLoan Administration Officermbedard@socca.qc.ca

Laurent Odjick, B.A.A.External Development Officer Gaspésie Peninsula – Lower St. Lawrencelodjick@socca.qc.ca

Annie GareauExternal Development Officer(on maternity leave, replaced byNathalie Noël)Outaouais - Abitibi-Témiscamingue and Great Northagareau@socca.qc.ca

Michelle Picard, B.A.A.Financial Analystmpicard@socca.qc.ca

Photo not available

Denise Jean, Administrative Assistantdjean@socca.qc.ca

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Our specialized staff can help you! Do you have specific needs? Tell us about them! We can even meet with you to discuss your needs.

Tell Us about Your Needs

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• Head Office

2936, rue de la Faune, Suite 200Wendake (Québec) G0A 4V0

• Branch

1130, 8e Rue, bureau 202Val-d’Or (Québec) J9P 3N6

Telephone: 418 842-0972

Toll free: 1 800 241-0972

Fax: 418 842-8925

Contact Us