Indigenous Community Business Fund | Frequently Asked Questions
Indigenous Tourism BC in partnership with Indigenous Services Canada and the Aboriginal Financial Institutions in BC are once again delivering a Tourism and Hospitality Fund through the Indigenous Community Business Fund. The fund supports the operation of the businesses as well as costs to support the adaptation, planning and reopening of businesses.
Please find our Frequently Asked Questions (FAQ) below with themes of General Information, ICBF Stream 1, ICBF Stream 2, Form and Tourism and Hospitality Sector.
GENERAL INFORMATION
1. What new updates have been made to the Indigenous Community Business Fund (ICBF) program guidelines?
The program continues to support operational losses for businesses which have been impacted by the pandemic. The program guidelines have been clarified to support applications requesting financial support for costs to support the adaptation, planning and reopening of a business.
Eligible costs have been updated to include:
- costs required to comply with provincial health regulations
- retraining
- marketing
- technology
- professional services
- planned maintenance and repairs the business is unable to complete due to cash flow
- other reasonable operating costs
2. Does ICBF support loss of revenues?
Answer: ICBF does not support revenue losses. Where communities have experienced a loss of revenues which has impacted their ability to support core community programs, they may apply for support from Own-source revenues for Indigenous communities Initiative (OSRICI) https://www.sac-isc.gc.ca/eng/1623255117700/1623255147941
3. Can ICBF support community economic recovery planning costs?
Answer: Each community will receive an allocation under ICBF Stream 1 which can be used to cover economic recovery planning costs. If you require additional financial support, please inquire with the regional office regarding funding availability.
ICBF STREAM 2:
Application-based support for community-owned businesses which have been impacted by COVID-19 restrictions.
4. How are applications assessed?
Answer:
Operational losses
Where a business has demonstrated operational losses, eligible expenses will be considered for support. For wages and rent expenses support will only be considered if the applicant has been unable to access Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy; assessment criteria for wages and rent will be consistent with the requirements for those initiatives.
Debt servicing
Where a business has demonstrated operational losses and is unable to meet debt servicing requirements, ICBF can help support the payments for regularly scheduled principal payments of an existing debt that is not related to other federal COVID-19 financial support.
Adaptation costs
ICBF can support costs related to the adaptation, planning and reopening of a community-owned business which has been impacted by COVID (as described above). Applicants will be required to a provide a description of the planned activities and how they will support the business. A detailed cost breakdown with supporting documentation (e.g. quotes) will also be required.
Eligible adaptation costs include:
- costs required to comply with provincial health regulations
- retraining
- marketing
- technology
- professional services
- planned maintenance and repairs the business is unable to complete due to cash flow
- other reasonable operating costs
5. What types of operating costs are eligible for support?
Where a business has applied for support for operational losses, eligible operating costs include:
- capital lease payments for existing equipment and machinery
- salaries and benefits, only if ineligible for Canada Emergency Wage Subsidy, and at the same rate.
- utilities
- bank charges and interest payments
- professional fees
- monthly insurance payments
- rent or mortgage, only if ineligible for Canada Emergency Commercial Rent Assistance
- supply and delivery costs
- operating costs or capital expenditures related to adapting the business and services
- other reasonable applicable operating costs
Costs not eligible for non-repayable contributions include:
- any costs deemed not reasonable, expenses not associated with the operation, adaptation, planning and reopening of a business
- refinancing or repayment of an existing loan or debt resulting from other federal COVID-19 financial support
- costs of amortization and goodwill
- acquisition of buildings
- costs for services provided by a federal or provincial government
- loss of revenue
6. What do I need to submit to apply?
Answer:
- Financial statements to demonstrate the decrease in revenue that covers the period of the application request.
- Quotes and breakdown of costs if applying for support to COVID-19 related adaptation.
7. Do businesses need to be located on reserve?
Answer: No, under Stream 2 a business is eligible as long as it is community-owned.
8. Please provide clarification regarding funding support to seasonal businesses under ICBF Stream 2.
Answer: If the business plans to reopen next season, they would not be considered to have permanently ceased operations, and as such would be eligible for support. Other programs are providing support to seasonal businesses/workers (e.g. CEWS).
In the application, the “number of jobs maintained” would be the jobs that would still be in place next season or in 2021 since the support would cover what would have been the 2020 season.
9. Do I need to submit an application?
Answer: Yes, applications must be submitted by the community or collectives on behalf of the business to their respective regional offices.
BC Region:
- If the business is in the tourism and hospitality sector, please submit your application to our delivery partner, Indigenous Tourism Association of BC, to [email protected].
- All other businesses, please submit your application to [email protected].
10. Is there a deadline?
Answer: There are no submission deadlines. Applications for funding are accepted on an ongoing basis until all funding has been allocated.
11. Does the business have to be on reserve?
Answer: No.
12. Does the business have to be 50.1% community-or collectively-owned and controlled by the community?
Answer: A business is eligible as long as it is 50.1% community-owned.
13. Does the business need to have been in operation since October 1, 2019?
Answer: Yes.
14. If I received funds in 2020/2021, am I still eligible to apply on 2021/2022?
Answer: If the business continues to operate with a reduction in revenues as a result of COVID-19, you can apply in 2021/2022.
15. If my business is closed, due to COVID-19, am I still eligible to apply?
Answer: If your business is closed due to government order in response to the COVID-19 pandemic, you are eligible to apply.
16. Can I still apply for support if my business did not show a deficit but incurred significant losses?
Answer: Yes, if there is still an operational gap.
17. Can I apply for funding for one or more community-owned businesses?
Answer: Yes, however, funding caps may be put place depending on program demand to ensure as many as First Nations, Inuit or Métis communities or collective have access to the fund.
18. What do I need to provide that demonstrates my business continues to operate with a reduction in revenues from the previous year over the coming months as a result of COVID-19? Is there a required % in the reduction of revenue to be eligible?
Answer: You must provide financial statements to demonstrate the decrease in revenue that covers the period of the application request. To be eligible, it is expected that you will continue to operate with a decrease in revenues over the coming months as a result of COVID-19.
19. Do I need to demonstrate that I have previously applied for federal business support and been declined?
Answer: For requests under $500,000 ICBF support, the applicant will have to provide a signed attestation. For request above $500,000, the applicants must provide supporting documents. Please note that as for all federal programs, funding is subject to audit.
TOURISM AND HOSPITALITY SECTOR
20. Will the Indigenous Tourism Association of BC (ITBC) continue to deliver the fund to eligible businesses in the Tourism and Hospitality sector?
Answer: Last year ITBC, in partnership with Aboriginal Financial Institutions, successfully delivered ICBF stream 2 funds up to $250,000 to eligible BC-based businesses in the Tourism and Hospitality sector. This arrangement has been renewed for fiscal year 2021-22. ITBC has authority to approve ICBF funding under the same terms and conditions as ISC, for expenses up to $250,000 (including operational losses as of April 1, 2021) to eligible businesses in the Tourism and Hospitality Sector.
For more information, please contact the Indigenous Tourism BC office if you have any questions about the application:
Gail Joe Paula Amos
Phone: 604.505.7762 Email: [email protected]
Email: [email protected]