Aboriginal Business Development Fund

Did you know that you could get funding at the community level?

The ABDF (Aboriginal Business Development Fund) is a program that provides tools for Aboriginal entrepreneurs who choose to start their own businesses. The funds are available through a community-based organization.

What is an ABDF?

The fund increases access to capital for Aboriginal entrepreneurs who would normally not qualify for a loan.

Loans combine financing with management training and on-going mentorship. The entrepreneur commits by undertaking training to enhance management skills and agrees to ongoing mentorship. The loan is disbursed only after these conditions are met.

The fund benefits the community and serves as a business model for other communities to follow.

What is BDC’s commitment?

BDC has committed $1 million dollars for 4 ABDFs in various regions of Canada. Agreements have currently been signed for 3 ABDFs. For all of these agreements, the funds are delivered at the grassroots level and involve amounts varying from $5,000 to $20,000. The loans are fully repayable with terms varying from 2 to 3 years depending on the project’s cash-flow expectations.

Source: Business Development Bank of Canada