1. Nature, Trade and Industry Show Rouyn-Noranda, March 23 and 24,2011

2. 2 Possible sources of financing for private enterprise Welcome to the Conference

3. 3 Laurent Odjick, External Development Officer Laurent Odjick is a member of the Algonquin Nation from the community of Kitigan Zibi He holds a Bachelor of Business Administration and joined the ranks of the SOCCA team in May 2005 in the capacity of External Development Officer. Presentation of the Speaker

4. 4 SOCCA is a non-profit corporation firmly established within the First Nations of Quebec since 1992. SOCCA offers financial products and services as well as coaching for the start-up, acquisition and expansion of Aboriginal businesses. Our Profile

5. 5 Our Clientele Serving First Nations –Abenaki –Algonquin –Atikamekw –Huron-Wendat –Micmac –Cree (ABDP only) –And the members of the Native Alliance of Quebec

6. 6 We offer 1. Term loans 2. Non-refundable contributions (grants) 3. Coaching Our Products and Services

7. 7 Our Products and Services (continued) Term Loan Maximum loan capacity of $400 000 The loan amount is determined on the basis of the borrowers ability to repay Moreover, the value of collateral security must be sufficient to reasonably cover the amount borrowed.

8. 8 Our Products and Services (continued) Term loan (continued) Collateral security used to guarantee a loan generally consists of various business assets. Land and BuildingMax. 70% EquipmentMax. 70% InventoryMax. 50% Working capital0%

9. 9 Our Products and Services (continued) Term loan (continued) Capital outlay Minimum 10% of the total cost of the project A transfer of assets may be considered as capital outlay Interest rates Competitive and comparable to traditional financial institutions Varies depending on the risk associated with the project

10. 10 Our Products and Services (continued) Term loan (continued) Processing delay Average amount of time required per file Important items to consider to ensure that files are processed rapidly

11. 11 Term loan (continued) Analysis of the internal and external environment of the business Analysis of the project Financial analysis Conclusion and recommendations Lenders Decision Making Criteria

12. 12 Our Products and Services (continued) Non-refundable contribution (grant) Since 2001, in addition to offering term loans, SOCCA has acted in the capacity of external services agency in partnership with the Aboriginal Business Development Program (ABDP) of Indian and Northern Affairs Canada (INAC)

13. 13 Our Products and Services (continued) Non-refundable contribution (grant) Depending on the type of project, ABDP can provide financial assistance for the achievement of the following activities Acquisition and start-up of a business Development/growth (expansion) of a business Operating costs Marketing Business plan and preliminary studies (equipment evaluation) Support to the entrepreneur (coaching, accounting)

14. 14 Our Products and Services (continued) Non-refundable contribution (grant) What is the maximum amount to which you are entitled? Entrepreneurs may individually receive up to $99 999 in financial assistance In the case of community businesses (band councils), this assistance can reach up to $1 000 000

15. 15 Our Products and Services (continued) Non-refundable contribution (grant) The level of financial assistance depends on several factors –Nature of the project –Scope of the project –Availability of other sources of financing –Repercussions and economic advantages of the project –Financing needs (see next page)

16. 16 Our Products and Services (continued) Non-refundable contribution (grant) How do we evaluate the need for a non-refundable contribution? Capacity of the individual and/or business to obtain the maximum possible loan (analysis of the possibility of refinancing of the applicants assets) A verification is made with the financial institution to ensure that the authorized loan amount is indeed the maximum amount The aim of the program is to meet financing needs (last resort)

17. 17 Our Products and Services (continued) Non-refundable contribution (grant) Minimum capital outlay required Minimum 10% for young entrepreneurs (aged 35 or under) Minimum 15% for individuals aged 36 or older The amount required depends on each individuals equity (see example that follows)

18. 18 Our Products and Services (continued) Equity (individual, partnership, company) Percentage of capital outlay required Under $25 000Young entrepreneur: 10% Entrepreneur (over age 35): 15% $25 001 to $100 000Young entrepreneur: 11% to 15% Entrepreneur (over age 35): 16% to 20% $100 001 to $250 000Young entrepreneur: 16% to 20% Entrepreneur (over age 35): 21% to 25% $250 001 to $500 000Young entrepreneur: 21% to 25% Entrepreneur (over age 35): 26% to 30% $500 001 to $1 000 000Young entrepreneur: 26% to 30% Entrepreneur (over age 35): 30% to 35% Policy regarding requisite capital outlay

19. 19 Our Products and Services (continued) Non-refundable contribution (grant) Project CostsPotential Contribution Development of a business plan, marketing plan or feasibility study Up to 75% Start-up, expansion or acquisition of a business Between 30% and 50% Implementation of marketing activitiesUp to 60% Project managementUp to 75% Advice from accountants and other professionals after the business is launched Up to 75%

20. 20 Our Products and Services (continued) Non-refundable contribution (grant) When the project is approved The non-refundable contribution must be claimed as the project advances Example The cost of the project is $10 000 and the authorized ABDP contribution rate is 30% of admissible costs. You will receive a refund of $3 000 when all expenses have been incurred

21. 21 Our Products and Services (continued) Non-refundable contribution (grant) Eligibility criteria Be an Aboriginal Have experience and training in the domain Requisite financial resources available (capital outlay) Prepared for full-time involvement in the business Impeccable credit history Present a complete business plan in compliance with ABDP guidelines Business not involved in the following sectors of activity (games of chance, sex, alcohol, tobacco)

22. 22 To apply, you must send us 1.Duly completed Statement of Intent form (ABDP) 2.Duly completed Declaration of Applicant form (SOCCA) 3.Duly completed Personal Balance Sheet 4.Copy of your Indian Status Card 5.Copy of your résumé 6.Bank statement indicating your capital outlay 7.Business plan (if already prepared) 8.Copy of loan approvals or other contributions (if already on hand) 9.If the business is in operation, financial statements for the past three years along with the most recent interim financial statements Presenting an Application for Financing

23. 23 Why apply to SOCCA? Unique expertise adapted to the particular needs of First Nations SOCCA has a multidisciplinary team of nine employees and works with financial partners to meet the particular needs of the Aboriginal market Our Team

24. 24 Our team Jean Vincent, CA, CGA, GFAC President and General Manager vincentj@socca.qc.ca Martin Légaré, B.A.A. Director of Administration and Operations mlegare@socca.qc.ca mlegare@socca.qc.ca Elyse Boisvert Administrative Assistant eboisvert@socca.qc.ca eboisvert@socca.qc.ca Jean-Conrad Dussault Accountant cdussault@socca.qc.ca cdussault@socca.qc.ca Mario Bédard Loan Administration Officer mbedard@socca.qc.ca mbedard@socca.qc.ca Laurent Odjick, B.A.A. External Development Officer Gaspésie Peninsula – Lower St. Lawrence lodjick@socca.qc.ca lodjick@socca.qc.ca Annie Gareau External Development Officer (on maternity leave, replaced by Nathalie Noël) Outaouais - Abitibi- Témiscamingue and Great North agareau@socca.qc.ca agareau@socca.qc.ca Michelle Picard, B.A.A. Financial Analyst mpicard@socca.qc.ca mpicard@socca.qc.ca Photo not available Denise Jean, Administrative Assistant djean@socca.qc.ca

25. 25 Our specialized staff can help you! Do you have specific needs? Tell us about them! We can even meet with you to discuss your needs. Tell Us about Your Needs

26. 26 Head Office 2936, rue de la Faune, Suite 200 Wendake (Québec) G0A 4V0 Branch 1130, 8e Rue, bureau 202 Val-dOr (Québec) J9P 3N6 Telephone: 418 842-0972 Toll free: 1 800 241-0972 Fax: 418 842-8925 Contact Us