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SIEF Contribution Program (SCP)
January 2016
Outline
1. SCP Introduction2. Eligibility3. Financing4. Timeline5. Next Steps
1. SCP INTRODUCTION
• History
• Mandate is to increase the number of First Nation owned businesses in Saskatchewan
• Conditional grant to start, expand, or acquire– Maximum for individuals is $99,999– Maximum for bands is $250,000
1. SCP INTRODUCTION
• Program qualifiers
• BDO role
2. Eligibility
• Eligibility of the applicant– Substantive Involvement Policy / Needs Based
• Eligibility of the project/business– List of avoids
• Types of businesses• Passive businesses
• Eligibility of the project costs– Related to generating revenue – Arms-length transaction policy– Canada only
3. Financing
• A well rounded financial plan will be needed
• To qualify for a grant you must qualify for a loan
3. Financing
Example: Joe’s Landscaping Business• Costs:
• Bobcat $100,000 • Working capital $5,000 • Bookkeeping $5,000 • Marketing $5,000 • Insurance $5,000
TOTAL COSTS $120,000
3. Financing
Example: Joe’s Landscaping Business• Financing:
• 10% Client’s Equity Investment $12,000• 40%* SIEF CP (grant) $48,000• 50%** Authorized Lender (loan) $60,000
TOTAL FINANCING $120,000Total costs has to equal total financing
* SCP percent depends on project details** Lender percent will be whatever is remaining
4. Timeline
• Average 3 months
• 2 stages
• Contact us early in the process
4. TimelineRevisiting Financing Now With Both Stages
• Stage 1: Cost $4,000 business plan• 25% owner’s equity ($4,000*25%)= $1,000• 75% SIEF grant ($4,000*75%)= $3,000
• Stage 2: Project Costs = $120,000• 10% owner’s equity ($120,000*10%)= $12,000• 40% SIEF grant ($120,000*40%)=$48,000• 50% loan ($120,000*50%) = $60,000
• Grand Total Financing Plan:• Owner’s equity = $13,000• SIEF grant = $51,000• Loan = $60,000
5. Next Steps
• Step 1 – Estimate realistic project costs• Step 2 – Speak with your lender• Step 3 – Find business plan writer• Step 4 – Submit SCP application form
