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Secrétariat aux affaires autochtones

Loan guarantees

The loan guarantee component of the Aboriginal Initiatives Fund II (AIF II) makes $5 million available to Aboriginal peoples in Québec. The goals of this component are to:

  1. Set up the conditions that will foster the emergence of economic development;
  2. Allow Aboriginal organizations to access conventional funding sources.

A. Eligible organizations

Eligible organizations are:

  1. Aboriginal nation communities that are recognized by the Québec National Assembly;
  2. Non-profit Aboriginal organizations or their equivalent;
  3. For-profit Aboriginal organizations or their equivalent.

B. Eligible projects

To be eligible for a loan guarantee, projects must achieve the goals set out by this component of the program, be submitted to the Secrétariat aux affaires autochtones (SAA) and be completed before March 31, 2017.

C. Eligible expenses

All expenses related to the creation, expansion or consolidation of an eligible business or organization are eligible.

D. Determining of the financial assistance

The financial assistance takes the form of a loan guarantee to support economic or social development initiatives. The Gouvernement du Québec may guarantee a loan for an amount representing 50% of eligible project costs, up to a maximum of $100,000, with some exceptions. The loan guarantee will be effective for a maximum period of 5 years. At the end of this period, the proponent could obtain a grant in an amount representing up to 5% of the loan guarantee, if it meets certain conditions specified in the guarantee agreement.

In order to encourage partnerships between Aboriginal and non-Aboriginal people, businesses and organizations in such partnerships will be considered 100% eligible for this program as long as the Aboriginal proponent retains effective control and, in the case of a company, owns more than 50% of the shares. For the Aboriginal proponent who owns less than 50% of the shares, the amount of financial assistance for the project will correspond to the percentage of ownership.
To calculate the financial contribution of the Gouvernement du Québec or its agencies, loan guarantees are estimated at 3% of the guaranteed amount.

E. Conditions of application and reporting

All authorized projects will be the subject of a loan guarantee agreement between the eligible organization and the Gouvernement du Québec. The agreement will define the project, conditions for the loan guarantee and commitments of the parties. Moreover, this agreement will provide for a reporting process.

Signature gouvernementale
Secrétariat aux affaires autochtones
905, avenue Honoré-Mercier, 1er étage - Québec (Qc)  G1R 5M6 - 418 643-3166
Online as of: November 2, 2012