Commonly Asked Questions
1. What industries does the fund support?
There is no restriction on the types of industries the Fund can support. Although there is an emphasis on the key strategic growth sectors such as Energy, Mining, Forestry, Manufacturing, Processing and Tourism, CCDF also provides support to the Retail, Service, and Hospitality & Specialized Agriculture industries. The restrictions are noted in the CCDF brochure.
2. What does CCDF not fund in a normal proposal?
Under its traditional program guidelines CCDF is restricted to funding only fixed assets. Items such as land, buildings, furniture, fixtures, leasehold improvements, vehicles and equipment are fixed assets. CCDF does not provide funding for working capital, inventory, pre-start up capital, feasibility studies, debt consolidation, refinancing or other soft costs.
3. Does the percentage of Métis ownership determine the amount you can obtain from CCDF?
In some cases it may have an impact. It must be clear that the Métis owner will stand to gain from the funding provided by CCDF. Each project will be considered on a case by case basis. In the case of a marital situation where the spouse is not Métis the contribution will not be discounted.
4. How long does the process take once CCDF has the completed business plan?
For approvals under $200,000 CCDF commits to a decision within 2 days. Over that amount may take upwards to a week depending on the availability of the Board of Directors. You will be kept well informed throughout the entire process.
5. Can equity be in a form other than cash?
Although cash equity is preferred, equity in the form of contributed assets (directly related to the business) maybe considered. CCDF does not recognize personal assets such as a personal vehicle or residential real estate as equity. In the case of an existing business CCDF will recognize the equity built up in the fixed assets as equity in a new proposal.
6. Are personal Guarantees taken by CCDF?
Funding to partnerships and proprietorships are supported by an accepted Letter of Offer and a Contribution Agreement signed by all the owners of the business. Since CCDF is viewed as providing equity on behalf of the owner, he/she is personally obligated.
In the case of a limited company CCDF makes the contribution to the shareholders and the company jointly so the owners are personally obligated.
When preferred shares are taken the owners are expected to sign a personal guarantee for repayment.
7. How many times can we go back to CCDF & when?
You can reapply to CCDF as many times as you want. As long as the project meets the criteria it will receive consideration. The creation of Employment, leveraging of conventional financing, project viability and the repayment history with CCDF and other creditors will be the determining factors.
8. Is there any support available after the contribution is made?
The Fund provides non repayable aftercare support of up to $10,000 for 2 years following CCDF approval. The Fund also has a program to assist clients with management and marketing skills training. The intent is to continue a relationship with our clients well after the project is funded, providing support and guidance along the way.
9. What restrictions are there in the Management and Marketing Skills Training Program?
Technical skills will not be funded i.e., truck driver training, equipment operator training, etc. The intent is to help clients acquire the skills necessary to manage their business. The program is quite flexible in this regard and relies on the client to determine his/her needs.
10. Does CCDF provide grants or non repayable contributions?
There are non repayable contributions available for community based business proposals under the Community Development Program. CCDF does not provide non repayable contributions to private business.
Business plan assistance, aftercare assistance and management and marketing skills training are all non repayable.
11. Can CCDF provide more than $1,000,000.00 towards a business project?
CCDF can consider providing over $1,000,000 however it would require the approval of the province.
12. How stable is CCDF?
The Fund was legislated as a provincial crown agency for the purpose of the Provincial Auditors Act in 2001. The operating “Agreement” between the Métis Nation and the province has no sunset clause. CCDF has been successfully providing equity support to Métis business in Saskatchewan for the past 12 years. CCDF is a leader in Métis economic development with a record for job and wealth creation that speaks for itself. CCDF also houses the recently established Métis Economic Development Sector and has established the federally funded Métis Energy and Resource Program (MERP). In the 2010 provincial budget CCDF funding was increased to $3.4 million dollars annually, an increase of 73%. It is expected that CCDF will continue to provide much needed equity support to Métis business well into the future.
13. What is the ratio of approvals to declines?
CCDF has never declined an application that has gone through the process of independent business planning that supports the viability of the project
14. Does CCDF fund not for profit businesses?
Under the community Development Program CCDF can fund not for profit businesses that are supported by a professionally prepared business plan that demonstrates business viability including the repayment of any repayable contribution from CCDF.
15. Which projects are ineligible?
• Refinancing (some exceptions apply);
• Payment of dividends;
• Cultural activities;
• Social programs;
• Political bodies for political process;
• Residential Real Estate;
• Basic farming and ranching;
• Commercial real estate for the sole purpose of lease or rent to others. The applicant's business must occupy the majority of space and be commercially viable exclusive of the rental/lease income to receive support from CCDF (some exceptions may apply).
All applicants will be required to enter into a contractual agreement with CCDF.
For additional information, please contact the CCDF Office.
