Nunavut CEDO Presentation to the

Nunavut Trade Show Conference

Getting Support to Grow Your Business September 28, 2011 Glenn Cousins

What is NCEDO? • Works in conjunction with the three regional Inuit Community Economic Development Organizations (Kitikmeot Economic Development Commission, Kivalliq Partners in Development and Kakivak Association) and the Canadian Northern Economic Development Agency (CanNor) to help establish and support successful Inuit businesses through the delivery of Aboriginal Business Development Programming (ABDP).

What is NCEDO? •

Membership of NCEDO includes the three Regional Inuit Associations and NTI

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Board of Directors with two members appointed by each of the Regional Inuit Associations and one from NTI

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Technical Committee comprised of the senior managers of each of the regional Inuit Community Economic Development Organizations, one member from NTI and the NCEDO manager

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Project Review Committee with members appointed by each of the Regional Inuit Associations and one from NTI

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Two business development officers, an office administrator and a manager

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Managed by Kakivak Association

What is NCEDO? •

Based in Iqaluit but provides services to all regions of Nunavut

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Delivers a federal Aboriginal Business Development program through an agreement with the Canadian Northern Economic Development Agency (CanNor) commonly referred to as ‘ABC’

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Follows program and funding guidelines established originally by Aboriginal Business Canada

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Program divided in to two streams ‘ASD’ and ‘XDO’

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Under ASD can provide up to $99,999 for eligible applicants and projects

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Under XDO facilitate application process to access funds up to $1,000,000 for eligible applicants and projects

What is NCEDO? • • • • • • •

Business Planning Establishment and Expansion Acquisition of capital assets Developing and implementing marketing plans Business Support Equity contributions in the form of non-repayable grants Work through established partnerships with other agencies to help provide the best possible project financing arrangements for our clients • These partnerships are often key to the success of the business project

Application Process •

Contact a Business Development Officer to discuss your business development idea (please do this first!)

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You will then be informed if your project appears to be eligible and what steps need to be taken to continue with the process

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Complete an application form and provide all the required information

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The BDO will complete an initial project screening assessment for approval of the manager

Application Process •

Once screened eligible the BDO will contact you for any additional information that may be required

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If the funding is for the preparation of a business plan the BDO will help you prepare an RFP and select a consultant

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A final assessment will be completed and presented to the Project Review Committee for a decision

ASD Project Funding • Eligible applicants with eligible projects can qualify for a maximum of $99,999 in non-repayable equity financing • All applicants are expected to commit a portion of the total project cost in cash equity – Youth applicants must contribute at least 10% of total project cost – Anyone over 36 must contribute at least 15% of total project cost – Equity requirement is more for established businesses with higher personal or corporate net worth

• Businesses that are not 100% Inuit owned may still qualify but a pro-rated formula will be applied to determine contribution limits • Approved applicants are eligible to come back to NCEDO for additional projects, usually after two years depending on the type of project

ASD Project Financing Project cost $75,000

Project costs $200,000

Client is under the age of 36

Client is over the age of 36 % of total

Client Equity

% of total

7,500

10%

Client Equity

30,000

40%

NCEDO

10,000

13%

SBSP

5,000

Loan Total

NCEDO Inuit CEDO

30,000

15%

70,000

35%

Inuit CEDO

10,000

5%

7%

SBSP

20,000

10%

22,500

30%

Loan

70,000

35%

75,000

100%

Total

$ 200,000

100%

Combined Client and Nunavut CEDO Equity should not normally exceed 50% of total project costs. Debt financing component must be at least 30%.

XDO Project Funding • Higher levels of funding up to $1,000,000 under the XDO stream are only available to community owned businesses • These can include: – Community Co-ops – For-profit companies owned by community development corporations – For-profit companies owned by community-based agencies such as the Hunters and Trappers Organizations

• Currently there is a limited amount of funding available for this type of funding • So far the maximum amount secured under the XDO stream has been $250,000

Other CEDO Funding • Inuit CEDO’s in the three regions include: – Kitikmeot Economic Development Commission (KEDC) – Kivalliq Partners in Development (KPID) – Kakivak Association (KA) • These organizations also offer a range of business support services for Inuit businesses – Sivummut Grants – Small Tools Grants – Makigiaqvik Loans (KA only)

We are here to help • • • •

Local Economic Development Officer (EDO) Regional CEDO Website: www.ncedo.ca Directly contact regional BDO

Qikiqtani Region Natalie O’Grady [email protected]

Kivalliq & Kitikmeot Regions Kristof Karcza [email protected]

PO Box 1419 Iqaluit, Nunavut X0A 0H0 (P) 867-979-0911 or 800-561-0911 (F) 867-979-3707

Questions?

“Let’s build Nunavut one sound business at a time”