Federal stimulus package 'a lifeline' for Indigenous businesses in northern Ontario, says advocacy group

The Anishnawbe Business Professional Association (ABPA) is welcoming a $306.8-million federal stimulus package for small and medium-sized Indigenous businesses, but the head of the group representing entrepreneurs and companies throughout northern Ontario said the program's success depends on how quickly applicants can access the funding.

The program is "the first step in the right direction but much more work needs to be done" said Jason Rasevych, ABPA's president and founder.

His organization represents over 100 different First Nations businesses, in five different Treaty areas, from the Manitoba border to North Bay. The association helps First Nations businesses develop policies and programs to boost their economies, and provides information, guidance and networking opportunities to non-First Nations businesses interested in forming partnerships.

"When we talk about sectors that were hit very hard" by the shutdowns associated with stopping the spread of COVID-19, he said, "it's no different in an Indigenous community, especially our remote First Nations in northern Ontario."

Rasevych said the ABPA represents a wide range of companies including eco-tourism, hospitality services, mining supports, and the forestry industry.

As well, many First Nations are now involved in two large-scale constructions projects to build transmission lines the East West Tie line between Thunder Bay and Wawa, and the Wataynikaneyap line connecting remote communities in Ontario's far north.

'Lifeline of support for Indigenous business'

"A lot of those Indigenous entrepreneurs and First Nation companies were looking to establish assets and personnel to be able to participate in these projects and they are also being challenged at this time," said Rasevych.

National statistics show that 85 per cent of First Nations businesses have fewer than five employees, and 45 per cent of those businesses are located on-reserve.

But now many of those small operations are in jeopardy said Rasevych, citing a study by the Canadian Federation of Independent Businesses which suggests a quarter of smallbusinesses "will not survive a closure period of 30 days or longer without some form of stimulus support, and here we are, we're over that 30 day period. This stimulus will be a lifeline of support for Indigenous businesses in the region."

He said Indigenous business is "a growth sector for First Nations people who have been sidelined and marginalized for a long time in local and regional economic development and this is a changing of the era for communities that are investing in their own businesses and for a lot of community members who are taking on self-employment."

Creating a stimulus package just for Indigenous businesses is important because "there were some barriers and obstacles we identified early on" he said. "There were certain thresholds related to payroll spending to qualify for the loan guarantee program which a lot of our Indigenous businesses in northern Ontario could not meet" as well as concerns over how an Indigenous business would be defined.

Interest-free loans, grants available

The stimulus package was announced April 18, and as of April 29, the Canada Emergency Wage Subsidy (CEWS ) had been expanded to include First Nation's community economic development corporations.

According to the federal government, the CEWS program now applies to corporations "that are at least 90% owned by one or more Indigenous governments, as well as partnerships carrying on a business where the partners are Indigenous governments, eligible Indigenous government-owned corporations (Economic Development Corporations), and other eligible employers."

Indigenous businesses will be able to access an emergency loan program "to receive an interest-free loan to inject some working capital to sustain their current operations" or grants "to support those businesses which are a lot more challenged related to their long-term sustainability."

Rasevych said he will be monitoring the stimulus program to ensure it is easily accessible and arrives quickly.

The ABPA is also launching a 'Roots in Resilience' webinar seriesdesigned to help First Nation's economic development corporations, community owned partnerships, Indigenous entrepreneurs and independent contractors understand the eligibility rules, and successfully applyfor emergency loans and grant programs. T

The series beginsMay 6at 1:00 p.m. with guest speaker Brian Davey, executive director of theNishnawbe Aski Development Fund.

You can hear the full interview with Jason Rasevych on CBCSuperior Morninghere.