Aboriginal BankingCatherine Debassige, Manager Aboriginal Business Services, ON

December 2011

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BDC Aboriginal Banking Objective:

To provide an overview of BDC’s Aboriginal Banking business solutions and Aboriginal market activity, while creating strong alliances with Aboriginal service providers to leverage Aboriginal business opportunities in Canada.

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Aboriginal Banking Role

> Create Awareness

> Provide Expertise to BDC Employees & Liaise with Aboriginal Businesses

> Create, Maintain and Enhance Alliances in the Aboriginal market

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BDC Aboriginal Banking Initiatives:

In addition to our existing business solutions, we have developed the following:

>Growth Capital for Aboriginal Business

>Loan Loss Reserve

>National Consulting Strategy

>Aboriginal Business Development Fund

>Peer Lending Circles

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Aboriginal Banking Youth Initiatives:

> E-Spirit National Aboriginal Youth Business Plan Competition

> Aboriginal Banking Newsletter

> SOAR Magazine

> Internship / Summer Employment

Financing

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GCAB: Growth Capital for Aboriginal Business

> Up to $25,000 for start-up businesses

> Up to $100,000 for existing businesses

> Access to other BDC loans to top up financing requirement

> No application or annual fees

> Flexible debt to equity

> Competitive interest rate

> Interest rebate for the community

> For on-reserve or off-reserve lending

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GCAB Financing Example:

BDC financing to complement other lenders:

Benefit: Start-up business, operating on-reserve

Project Amount Financing Amount

Purchase equipment $185,000Aboriginal Business Canada

$82,000

Working Capital $ 58,000 Canadian Youth Business Fund $11,000

BDC Financing: GCAB $25,000

BDC Financing: Working capital $75,000

Shareholder’s investment $50,000

Total $243,000 Total $243,000

Loan Loss Reserve

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Proposal Overview

> Intent is to make financing available to medium and larger First Nation businesses located on reserve, under commercial terms

> A majority owned (51% ownership) Status Indian or First Nation corporation or business, whose primary assets to secure loan are located on-reserve.

> Loans to individual businesses can be issued from $250,000 up to $500,000.

> Loans to First Nation community-owned businesses can be issued up to $5 Million.

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Aboriginal Financing Example

Loan Loss ReserveComplementary lending and use of the LLR

Benefit: Reopen a mill on-reserve land previously owned by a non-Native company, where 80 people had been laid off.

Project Amount Financing Amount

Equipment Upgrades $753,000 BDC Financing $344,000

Refinance Term Debt $ 232,000 Aboriginal Business Canada $200,000

Contingency Costs $34,200 2 CFDC Partners $300,000

Consulting Fees $16,800 First Nation’s investment $117,000

First Citizens Fund $75,000

Total $1,036,000 Total $1,036,000

Consulting Strategy

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Consulting Strategy

> Depth of experience in our roster of management consultants

> Understand a desire exists to include knowledge transfer, built into consulting projects with Aboriginal clients, focus on implementation, support.

> Examples of projects completed:

> Marketing Plans, Business Plans, Feasibility

> Quality Management, ISO, Operational Efficiency

> Information and Communication Technology

> Human Resources, Enhancing Management, Leadership

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Sugar Cane Development Corporation Testimonial

Needs> Faced with rapid growth – the wood manufacturing plant alone has undergone a

major expansion over the past three years and employs up to 40 community members – Sugar Cane Development’s board of directors recognized the need to become ISO certified to ensure that formalized processes were being applied throughout the corporation.

Results> The new quality management system has instilled an openness and

transparency across the corporation, improved time management procedures, and allowed Sugar Cane Development to better serve its clients.

CLIENT TESTIMONIAL : “As a result of becoming ISO certified, we are able to serve our clients more effectively and consistently. We recommend BDC to anyone who wants to improve their business.” – MARG SHELLEY,

Sugar Cane Development Corporation

Publications

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Aboriginal Banking Newsletter

> Client profiles to share success stories of entrepreneurs

> Recommended by BDC business centres

> Internal and external distribution, with 4,000 copies of each issue printed

> National recognition for the client

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SOAR Magazine

> Focus on education and life experiences

> Stories about Aboriginal youth role models who succeed in finding balance in their lives

> Internal and External distribution with over 4,000 copies of each issue printed

> E-Spirit Special Edition produced each year showcasing the event and the winners

Aboriginal Student Employment

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Annual Employment Programfor Aboriginal Youth

Goal:

Increase Aboriginal employment at BDC (full-time positions)

> Summer employment and Internship opportunities for College and University students

> Students must have completed at least one year at post-secondary institution in order to qualify

> 20 positions available across Canada each year, online application

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Summary: BDC Aboriginal Banking

> Consider BDC Financing and Consulting to support business start up and growth

> Speciality in custom solutions, flexibility, work in partnership with other service providers, funders and lenders.

> For more information on BDC business solutions, visit:

www.bdc.ca

www.bdc.ca/espirit

1 888 INFO BDC

www.bdc.ca

Catherine DebassigeManager, Aboriginal Business Services

Serving Ontario

T 705 670-6486 │ catherine.debassige@bdc.ca