Press Releases
National Aboriginal Capital Corporation Association Billion Dollar Mark Press Release
October 29, 2005
The National Aboriginal Capital Corporation Association (NACCA) today announced aggregate loans provided by its members the Aboriginal Financial Institutions (AFIs) to Aboriginal entrepreneurs has now surpassed the $1 Billion mark. This marks a major milestone for economic growth in Aboriginal businesses across Canada.
From 1988 to 1992 Federal Government in consultation with Aboriginal Leaders financed AFIs to address an access to capital gap conventional lenders were unable to fill because of regulatory restrictions. AFIs were provided near $200 million in repayable and non-repayable loan capital and mandated to provide repayable interest bearing small business loans to the Aboriginal market. "And that is exactly what they have done, and very successfully I might add" said Dan Brant CEO of NACCA. "To date AFIs have now recycled the $200 million of loan capital into small business loans totaling $1,002,438,642" said Brant.
Estimates are that thirteen thousands Aboriginal businesses and thirty thousand Aboriginal and non-Aboriginal jobs have been created as a result of AFI assistance. AFIs themselves employ 335 people across the nation. The Aboriginal Financial Institutions have met a tremendous challenge head on and are succeeding without precedence. AFI loans to Aboriginal small business total in the range of $70 million each year. Of the $1 Billion in loans provided since they were formed, $55 million has been written off (5.4%) and the existing portfolio now totals $193 million. That means $754 million has been collected and is being recycled over and over which stimulates the vibrant growth of the Aboriginal Business in Canada.
It marks a increasing stimulation of economic growth that plays an important role in the gross national product. "This is an all win situation not only for Aboriginal people but for all Canadians" states Brant.
"The numbers, although impressive, only tell a small part of this story" said Elaine Chambers, Chair of the NACCA Board. "The best part of this story is well beyond the numbers. It is the immeasurable improvement in the lives of thousands of Aboriginal business people and the resulting untold benefits to their families and their communities. This is the best part of this story," she said. "Aboriginal business people, leaders, AFIs and their Federal Government partners deserve all the credit for this tremendous accomplishment."
NACCA is an association that is owned by 58 AFI members from across Canada. The National Aboriginal Capital Corporation Association's national office is located in Ottawa Ontario.
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