b'ACCESSING CAPITALBY BRYAN C.K. HANSENA CESSING CAPITALCIndigenous businesses are breaking barriers of the pastA s the General ManagerNEDC is the first AFI in Canada toThe Indian Act can pose chal-for Nuu-chah-nulthaccess funding through the IGF,lenges for essential business loan Economic Developmentsays Little. It allows Indigenouselements, such as the securementCorporation (NEDC), Albusinesses to continue doing whatof collateral. The Indian Act has Little has watched the sizetheyre doing, and to keep growingrestrictions on how you can secure of Indigenous-owned businesses,like they have been. assets for a lender on reserve, and their loans, grow in a positivesays Little. Lending institutions trend over the last several years inWith such growth, additionalthat are not well-acquainted with Canada. capital from the IGF is needed toIndigenous-specific circumstances allow AFIs like NEDC to continuesuch as the Indian Act tend to NEDC is an Aboriginal Financialassisting Indigenous businessescategorize the unfamiliarity as Institution (AFI) that was foundedrealize their visions. NACCA under- a risk, which creates obstacles. by the fourteen Nuu-chah- stands both the unique natureAccessing capital was the biggest nulth tribes in 1984. NEDC helpsand the values of Indigenousissue, so AFIs like NEDC specialize Indigenous Peoples start, acquirebusinesses, which are integral toin Indigenous business and are able and expand businesses, and is onesuccessfully obtain financing.to provide affordable financing. of the most active members of the AFI network. Access to capital has been aWhat differentiates NEDC from historical challenge for Indigenousother lenders is a mandate for There has been so much growth inentrepreneurs, especially fromdevelopmental lending specifically Indigenous businesses that a newnon-AFI banks who may be unfa- to Indigenous businesses, removing investment fund, the Indigenousmiliar with Indigenous culture andthe misconceived or misunderstood Growth Fund (IGF), was establishedrisks of Indigenous circumstances. earlier this year. The IGF is underhistory. Walking into a bank asWe dont operate as a bank, says the management of the Nationalan Indigenous person, you wereLittle. Were not set to compete Aboriginal Capital Corporationsless likely to get financing, stateswith a bank, although some prac-Association (NACAA) and willLittle of the not-so-distant past. Hetices are similar. provide much-needed access tosays one of the reasons behind this capital for small and medium-sizedwas misconceptions at the bank.And as for the validity of past Indigenous enterprises. IndigenousNon-familiarity with the Indian Actmisconceptions? NEDC has not entrepreneurs from any industryhad everyone painted with a broadlost a penny, states Little. The will be able to access the IGFbrush, whether youre on reserve or[loan] default rate over the past 30 through AFIs such as NEDC. off reserve. years [for] First Nations is zero.16 FORWARD MAGAZINE | VOLUME 1 2022'