The Government of Canada, BDC, EDC and Farm Credit Canada invest in the C$150M Indigenous Growth Fund
March 31, 2021
150.00 Million CAD
On March 31, 2021, the Government of Canada and the Business Development Bank of Canada (BDC), as lead investors, Export Development Canada (EDC) and Farm Credit Canada (FCC) invested in the C$150 million Indigenous Growth Fund (IGF). The IGF is Canada’s newest and largest Indigenous social impact fund and will be under the management of the National Aboriginal Capital Corporations Association (NACCA).
The IGF will enable Indigenous entrepreneurs throughout Canada to receive the capital they require to start or expand their businesses through the Aboriginal Financial Institution (AFI) that serves them. AFIs will access the IGF for capital to build on their 30-year track record of lending to Indigenous-led small and medium-sized businesses. The IGF’s innovative evergreen fund model will offer institutional and social impact investors a vehicle for investment that will directly contribute to economic reconciliation.
The fund will be operational and capital will begin to be deployed to AFIs later in 2021.
The National Aboriginal Capital Corporations Association (NACCA) is the umbrella organization for a network of over 50 Aboriginal Financial Institutions (AFIs) across Canada. NACCA’s mandate is to serve, support and advocate for the Aboriginal Financial Institutions network.
Aboriginal Financial Institutions (AFIs) are autonomous, Indigenous controlled, community-based financial organizations. AFIs provide developmental loans and business financing to First Nations, Métis, and Inuit entrepreneurs and businesses in all provinces and territories.
McCarthy Tétrault advised BDC and FCC with a team led by Mathieu Laflamme that included Alexandre Saulnier-Marceau (Corporate), and Fred Purkey, Nicolas Désy, Marie-Soleil Landry, and Kassandra Grenier (Tax).