Business & Community Fund (Stream 1) Application Guide

Business & Community Fund (Stream 1) Application Guide

Business & Community Fund (Stream 1) Application Guide Contents 1. Purpose and Scope... 1 2. Overview... 2 3. Stream Requirements... 4 4. Proposal Requirements... 13 5. About the Application Form... 17

1. Purpose and Scope This guide provides information on the (AEDF) s Business & Community Fund ( Stream 1 ) for applicants and funding recipients. This Application Guide is effective as of October 7, 2014 and shall be valid until March 31, 2017. Updates to this guide may be released during this period and will be made available on www.ontario.ca/aboriginaleconomy. Any updates will be communicated in writing within three (3) business days to funding recipients. This guide should be used in combination with the Handbook, which sets out standard AEDF application, selection and approval processes. It also describes the project management requirements of the AEDF. This guide provides information specific for Stream 1, including eligibility criteria and eligible expenses. Business & Community Fund (Stream 1) Application Guide 1

2. Overview A funding stream of the (AEDF), the Business & Community Fund ( Stream 1 ) is designed to enhance business financing and support services of Aboriginal Financial Institutions (AFIs). 2.1 About the Business & Community Fund The Business & Community Fund allows AFIs to provide non-repayable grants and repayable financing products to Aboriginal entrepreneurs, businesses, communities and organizations. Funding may be used to support community-level economic development through grants for economic capacity-building. AFIs also use AEDF funding to provide financing for promising, high-potential businesses and projects to ensure they are viable when other available funding sources have been reasonably exhausted. Funding also enhances the ability of Aboriginal communities and businesses to leverage other financing sources for promising, high-potential economic development projects. The objectives of Stream 1 are: Enhancing AFIs ability to deliver business support services, particularly sharing information and linking businesses to other provincial government supports. Enhancing community-level economic development. Providing financing to ensure promising projects are viable and move forward when other funding sources have been exhausted. Enhancing Aboriginal communities and businesses ability to leverage other funding and financing sources for economic development projects. Consistent with the goals of the Jobs and Prosperity Fund, which includes the AEDF, funding will grow and develop Aboriginal businesses and communities by supporting productivity, innovation and jobs. Financing provided through the AEDF will contribute to the development of new products, services and products, as well as assist with the expansion into new markets. Successful applicants will act as financial intermediaries and make independent investment decisions based on permitted uses of funding and criteria. AEDF funding must be invested by AFIs in manners consistent with the AEDF Handbook, this guide and conditions set out in the Funding Agreement with the funding recipient. 2.2 Submitting a Proposal All applications for funding must be made through Grants Ontario. Before applying to the AEDF, applicants must create a One-key account and register for a Grants Ontario log-in and password. You will not be able to access Grants Ontario otherwise. Please visit www.grants.gov.on.ca and click on the How to Apply link for information on how to get an account. You can also refer to the Grants Ontario System Registration Guide for Applicants for instructions, which is also found on the Grants Ontario website under Grants Ontario Help. Once you are registered and have access, the next step is to complete an Business & Community Fund (Stream 1) Application Guide 2

(AEDF) Business & Community Fund application through Grants Ontario. 2.3 Contact Information Questions about the AEDF should be directed to aboriginalbusiness@ontario.ca or by telephone at 416-326-4740 and 1-866-381-5337, Monday to Friday from 8:30 a.m. to 5:00 p.m. Eastern Time. Information on the AEDF and the Business & Community Fund is also found at www.ontario.ca/aboriginaleconomy. Technical questions regarding Grants Ontario may be directed to the Grants Ontario Customer Service Line at GrantsOntarioCS@Ontario.ca or by telephone at 416-325-6691 or 1-855-216-3090, Monday to Friday from 8:30 a.m. to 5:00 p.m. Eastern Time. Business & Community Fund (Stream 1) Application Guide 3

3. Stream Requirements General requirements of the AEDF are provided in the AEDF Handbook, which should be reviewed prior to submitting an application. Applications for the AEDF must be made to a specific funding stream and projects must be delivered within the eligible criteria of individual streams. The following outlines details of eligibility requirements for the Business & Community Fund. 3.1 Eligibility Requirements An organization can apply for the Business & Community Fund if it is legally registered and recognized by the National Aboriginal Capital Corporations Association (NACCA) as an Aboriginal Financial Institution (AFI). To be eligible, an AFI must be based in Ontario and must only use AEDF funding to serve clients in Ontario. 3.2 Funding Period This document will serve as the Call for Proposals for projects with start dates of January 1, 2015 to March 31, 2017. Eligible AFIs will be selected through a competitive process. All proposals must be submitted through Grants Ontario no later than 5:00 p.m. (Eastern Time) on November 14, 2014. 3.3 Joint Proposals Applications can be submitted from two or more AFIs. Applications are also permitted from an AFI that is partnered with a financial institution recognized by the Financial Services Commission of Ontario (FSCO). Section 3.3 of the AEDF Handbook provides additional information on joint proposals. 3.4 Maximum Available Funding Funding is available for a period of three years, from 2014-15 to 2016-17. Only proposals for the entire three-year period will be considered. A single AFI may request up to $500,000 in 2014-15 and up to $1 million per year in 2015-16 and 2016-17. Two or more AFIs submitting a joint proposal may request up to $1 million in 2014-15 and up to $2 million per year in 2015-16 and 2016-17. Depending on the number of successful applicants and AFI needs outlined in proposals, maximum amounts may be adjusted following the evaluation period. Any change will be discussed with successful applicants in advance of entering into a Funding Agreement. The Ministry may also adjust funding amounts to ensure adequate provincial coverage as needed. 3.5 Funding Stream Criteria Funding recipients may use AEDF support for two components: Community Economic Grants to support economic capacity-building projects of Aboriginal communities and organizations. Business Financing for high-potential start-up and development stage small- and medium-sized enterprises that have exhausted other funding sources. Business & Community Fund (Stream 1) Application Guide 4

Community Economic Grants may be used to support core economic development building within an Aboriginal community/organization. These grants are intended to fund economic development related positions where the primary role is related to economic development, including promoting and/or developing employment, skills training and business development. Grants may be used for sector-specific positions within First Nation and Métis communities, Tribal Councils, Political Territorial Organizations and other Aboriginal organizations such as Aboriginal chambers of commerce, tourism boards and business organizations. Grant writing positions are also eligible if the position is focused only on developing grants related to economic development projects. Grants may only support staff salary and mandatory employee benefits, training, retaining Community Economic Grants can fund: Sector-specific positions (e.g., Tourism, Forestry and Mining Officers) Economic development related positions (e.g., Planning and Small Business Development Officers) Grant Writers working primarily on securing funding for economic development. Core capacity positions in an Aboriginal economic development or business organization. Training for any economic development position in an eligible community or organization. Community Economic Grants cannot fund salaries for: Positions already funded by the Government of Canada (e.g., Economic Development Officers, Land Managers) Consultation Coordinators or other industry liaison positions funded by the New Relationship Fund. professional services, travel, community meetings, related office expenses and administration costs for eligible positions. Grants may also be used to support economic development training for any position where the majority of his/her duties are directly related to economic development, including Economic Development Officers and Land Managers. However, grants cannot be used for core funding (e.g., salary and benefits) related to positions funded by another government source, including the Government of Canada. Funding under the Business Financing component may be used as capital for non-repayable and repayable financing products such as grants, loans, equity or other investments which are subsequently repaid. Investments must be made in a manner consistent with the objectives of the AEDF and Business & Community Fund. Any returns on investments and financing products can be reused for further investment only for activities related to the originally approved project. Based on local or regional need, AFIs may determine an appropriate apportionment between Community Economic Grants and Business Financing products. The emphasis should be on business financing, with no more than 25% of total funding to be allocated for Community Economic Grants. AFIs should provide details on the maximum amount for each AEDF-backed investment option in their application. It is recommended that Community Economic Grants not exceed $90,000 per project and Business Financing products not exceed $100,000 per project for financing with a fixed repayment schedule and $50,000 per project for non-repayable grants. When proposing maximum amounts, applicants must provide a sound rationale based on evidence of market need and gaps. Business & Community Fund (Stream 1) Application Guide 5

3.6 Eligible Investment Activities Types of investments that may be made by AFIs with AEDF funding under the Business Financing component include: Grants: Non-repayable payments to support planning activities or core economic capacity building for eligible businesses (i.e., start-up and early stage businesses; businesses in development stages including expanding businesses), communities or organizations. Seed Capital: Financing provided to study, assess and develop an initial concept for a new product, service or process with high market potential preceding the start-up phase. Start-up and Early Stage Loans: Financing provided to support high-potential start-up businesses (i.e., businesses with potential to contribute to tangible benefits for Aboriginal people, including employment and/or training opportunities) and the development of a new product, service or process with high market potential for businesses considered to be start up or early stage enterprises. Expansion Capital: Financing provided for the growth and expansion of a promising project or enterprise with a high potential for benefits to Aboriginal people, specifically employment, training and/or business opportunities. Capital may be used for increasing production capacity, market or product development, or for additional working capital. Equity: Ownership interest in an undertaking, represented by the shares issued to investors. Other investment instruments may be used provided that they are consistent with the objectives and requirements of the AEDF. Any investment instruments must be approved by the Ministry of Aboriginal Affairs. The Funding Agreement will include criteria for investment instruments as well as investment decisions and monitoring requirements, as well as compliance requirements established by the Ontario Financing Authority and the Ontario Securities Commission. 3.7 Eligible Delivery-Related Expenses AFIs may use a portion of the funding provided through the AEDF for noninvestment activities such as business support services. Examples of eligible activities include business planning support and coordination activities between AFIs, clients, service providers and provincial business networks (e.g., Small Business Enterprise Centres network). Examples of eligible delivery-related activities include: Meeting with early and growth stage Aboriginal businesses on- and off-reserve to provide guidance and expert advice on starting or growing a business. Delivering small business events, including seminars and workshops, trade shows and youth fairs. Providing information on government programs, including networking with other government programs to coordinate better service delivery to Aboriginal businesses and future entrepreneurs. Developing linkages and partnerships with the Ontario Network of Entrepreneurs (ONE), which includes Small Business Enterprise Centres, Regional Innovation Centres, and Business Advisory Centres. Developing linkages with on- and off-reserve Aboriginal non-profit organizations to promote partnerships for provincial funding sources, such as the Youth Jobs Strategy suite of programs. Developing linkages with First Nation schools to advise them about various provincial supports, for example, the Future Entrepreneurs Curriculum Support Kits. Business & Community Fund (Stream 1) Application Guide 6

Up to ten (10) percent of funding may be used to enhance AFI business supports to improve awareness of and links to mainstream provincial economic development programs. Funding may also be used to deliver business and community development supports that align with the AEDF or for increasing capacity within AFIs to deliver the AEDF. Funding can be used only for new program officers, promotional material, and training or information sessions for Aboriginal entrepreneurs, small- and medium-sized enterprises (SMEs) and community economic development practitioners (e.g., Economic Development Officers). Delivery-related costs that can be supported by the AEDF include: Costs related to staff responsible for delivering the project, including salary and mandatory employee benefits, travel and accommodation expenses for project staff for activities directly related to the work plan, and staff training that is project-specific and undertaken by project staff. Costs related to the delivery of events linked to the AEDF or promoting economic development supports available from the Province of Ontario, including information sessions, seminars and workshops, and trade shows or fairs. Direct and indirect overhead costs. Direct overheads are directly attributable to the project while indirect overheads may be shared resources or costs with other activities by the applicant. Indirect overheads must be fairly apportioned. o Overhead costs may include the purchase (to a maximum of $5,000.00) of eligible office computer and equipment, software updates, and equipment repairs, to support funded positions (unless additional equipment is necessary to meet evolving demands of the program activities). o Administration costs are considered overhead costs and must be directly related to the work plan. Eligible costs include: utilities; telephone/fax charges; network charges; postage/courier charges; photocopying charges; financial institution service fees; office supplies and the preparation of audited financial schedules. A maximum of 10% of the Delivery-Related Expenses budget (pre-administration) may be allotted to administration. o Costs related to rent for premises used to deliver the project. If the project occupies only a portion of the building for which rent is paid, the rental charge in the budget must be fairly apportioned. Costs related to meeting publicity requirements of the AEDF, including websites, promotional material and signage. Delivery-related expenses that cannot be funded include: Annual general meetings, budget deficits, membership fees, fundraising activities, committee and political meetings. Costs covered by other government funding. Costs not incurred in Ontario, including activities and travel that take place outside of Ontario; Costs related to any initiative that is already fully funded through other sources. Business & Community Fund (Stream 1) Application Guide 7

Costs related to initiatives that do not meet the Funding Stream Criteria (see section 3.5) or are not related to economic development. Honoraria to individuals already salaried with the applicant and/or represented community; Stipends for project participants. Contingency or unexplained miscellaneous costs. Infrastructure or large capital expenses including the renovation, construction or transformation of permanent spaces, parks or grounds; furniture, fixtures or other non-portable equipment other than the purchase of eligible office equipment for staff funded by the AEDF. Capital expenses, including but not limited to, land, buildings, leasehold improvements. Acquisition or leasing of motorized vehicles and other forms of transportation. Hospitality-related costs. Costs associated with the development of an AEDF proposal and/or application. Debt reduction costs. Litigation or other legal costs. Costs related to the Government of Ontario s consultation or engagement initiatives. Costs related to the Government of Canada s consultation or engagement initiatives. Costs related to other provinces consultation or engagement initiatives. Research undertaken for the purposes of pursuing land claims or litigation. Activities that could be deemed discriminatory, as defined by the Ontario Human Rights Code. Portion of harmonized sales tax (HST) costs that are refundable. Insurance fees necessary for the initiative, including Commercial General Liability Insurance. 3.8 In-Kind Contributions Eligible In-kind contributions include the following: Donations of travel services (e.g., vehicles, airfare). Time donated by various relevant partners in the development and/or delivery of the project or for consulting and professional services required for the project. This must be valued at the individual s actual salary for the time spent on the project, and not any other value. Donation of applicant s premises to deliver the project on a pro-rated basis. Donation of space at a location other than the applicant s premises necessary for the applicant or another participant to conduct the project. Discounts greater than or above regularly discounted prices. The following will not be considered as in-kind contributions: Donations in the form of knowledge, goodwill and other such intangibles. Guest speakers that would normally not be paid for services. Costs for roles that would traditionally be filled by volunteers. All remunerations and fees paid to the Board of Directors. Opportunity costs. Standard discounts. Business & Community Fund (Stream 1) Application Guide 8

Interest charges. Any items or services not directly related to the project. AFIs should identify all in-kind contributions related to the delivery of enhanced services and investment activities through AEDF support. Additional information on in-kind contributions is found in the AEDF Handbook. Ontario reserves the right to determine the eligibility or non-eligibility of any proposed inkind contributions. 3.9 Match Funding AFIs should identify any match funding leveraged (planned or actual) from other provincial, national or local public funders and/or private funders that would complement funding through the AEDF s Business & Community Fund. Evidence should be provided for any actual match funding identified in the form of official correspondence between the funder and the lead partner, such as a letter of approval or commitment. 3.10 Demonstrated Need Applicants must demonstrate how AEDF funding will improve access to financing in the proposed catchment area. Where possible and appropriate, applicants are encouraged to submit proposals that demonstrate how AEDF funding will enhance the current AFI catchment area. Additional information on demonstrating a service gap or market need is provided in the AEDF Handbook. Applicants must outline processes to confirm that beneficiaries as outlined in section 3.11 have demonstrated project-specific need. Beneficiaries must demonstrate clear need related to the lack of resources to successfully start a new business, deliver new business activities (e.g., the development of a new product, service or process) or expand business operations that will contribute to the objectives of the AEDF and the Business & Community Fund. Specifically, beneficiaries must demonstrate how a proposed project or activity will not go forward and/or will not be successful in achieving its desired outcomes without support. Alternatively, beneficiaries must demonstrate that AEDF-backed grants or financing will assist them in securing additional sources of public and/or private sector funding. AFIs should ensure that beneficiaries demonstrate how they have sought and/or secured other sources of funding from public and private sources, including other provincial programs and financing from traditional sources such as financial institutions. Applicant AFIs should outline how they will seek evidence that beneficiaries have reasonably exhausted and/or are not eligible for other available funding sources, as appropriate. AFIs should also outline how they will provide information to beneficiaries that may not be eligible for AEDF-backed funding on other funding sources, particularly provincial programs, through any enhanced business support services funded by the AEDF. 3.11 Beneficiaries AFIs acting as AEDF financial intermediaries will provide funding in the form of grants and financing products to clients. These clients are deemed beneficiaries of the AEDF. Any funding beneficiary who receives AEDF-backed grants or financing products of any kind must be an Aboriginal person, a legally Business & Community Fund (Stream 1) Application Guide 9

registered Aboriginal entity (that is, established by or under legislation, federally or provincial incorporated such as a business or not-for-profit organization), or a First Nation or Métis community in Ontario. Beneficiaries must also not be in default of the terms and conditions of any grant or loan agreement, including funding agreements with any ministry or agency of the Government of Ontario. AFIs will be permitted to provide AEDF-backed grants and financing products only to the following beneficiaries : An Aboriginal person (i.e., Status and Non-Status Indians, Métis and Inuit) in Ontario. A small- or medium-sized enterprise with under 250 employees that is majority-owned (i.e., at least 51%) by an Aboriginal person in Ontario. A social enterprise that is majority-owned (i.e., at least 51%) by an Aboriginal person in Ontario. An Aboriginal community-owned Economic Development Corporation in Ontario. A consortium or joint-venture where an Aboriginal partner(s) has a majority stake (i.e., at least 51%) in Ontario. Political Territorial Organization (PTO) in Ontario. Tribal Council in Ontario. First Nation community in Ontario. Métis community in Ontario. Aboriginal organization recognized by the Province of Ontario. AEDF-backed grants and financing products must be made open to all Aboriginal businesses within the proposed catchment area, irrespective of Status or whether they are located on or off a First Nations reserve. AFIs must provide information on specific application requirements and procedures. Application requirements and procedures must be consistent with the AEDF and the Business & Community Fund requirements outlined in this guide and the AEDF Handbook. All application forms and supporting materials must include the AEDF identifier and/or text provided by the Ministry of Aboriginal Affairs. Any beneficiary must be informed that grants and financing products are supported by the AEDF. Funding recipients must provide information about benefits from the AEDF to potential and actual beneficiaries. This may be achieved by mentioning AEDF support during information sessions, notice in any contracts or documentation provided to beneficiaries, the provision of an AEDF brochure (to be supplied by the Ministry of Aboriginal Affairs), or another manner deemed appropriate by the funding recipient. Additional information on acknowledgement is found in Section 5.3 of the AEDF Handbook. 3.12 Investment Decisions Any AEDF-backed investment made by an AFI will be made at the discretion of the AFI, taking into account considerations, objectives and requirements of the AEDF and the Business & Community Fund. Investment decisions must be made on sound risk assessments and consistent with the Funding Agreement. Applicants must provide information on how its organization will assess requests for financing, decision-making processes for determining investments and processes for monitoring Business & Community Fund (Stream 1) Application Guide 10

investments including repayment policies. This process may be the same as current practices, if these are consistent with the requirements of the AEDF and the Business & Community Fund. Prior to making any investment using AEDF funds, AFIs must ensure that the following conditions are met: A business plan for each investment. The business plan must include details of the proposed activity which the investment is being sought, as well as outline the viability of the project and any details on sales and profitability. A clear and realistic exit strategy for each investment. Evidence that the beneficiary has reasonably exhausted other available sources of financing from public and private sources. AFIs may propose a specific focus for AEDF-backed investments. For example, AFIs may focus on one or more of the themes of the Government of Ontario s Jobs & Prosperity Fund, of which the AEDF is a funded program. These themes include productivity, going global and/or innovation. Productivity refers to increased economic diversification, employment and/or business opportunities. Going global refers to expansion of businesses to international markets outside Canada. Innovation refers to the development of new products, services or processes. AFIs may also propose focusing on supports that accelerate the impact of early stage, high-potential Aboriginal businesses and community projects. AFIs may also propose focusing on traditionally under-serviced clients, such as persons with disabilities, women and youth. If a theme is selected, the approach to investment should be a multi-sector one and not focused on a single sector. Any proposed focus should be supported by a business case based on market need and/or gaps. 3.13 Acknowledgement, Oversight and Reporting Successful applicants will be required to: Sign an Ontario Funding Agreement with the Province of Ontario outlining the terms and conditions for receiving funds. Have or seek at least $2 million commercial general liability insurance coverage, and to add Her Majesty the Queen in Right of Ontario as represented by the Ontario Government as a coinsured on this coverage before the Funding Agreement can be executed. Report back to the ministry on the use of funds, service deliverables and outcomes achieved. Successful applicants must submit a Final Report and an Audited Schedule to provide this information. Permit the Province to verify/audit information submitted (at the discretion of the Province) to ensure that it is complete and accurate, and that funds were used for the purpose(s) intended. Identify the project management structure/staffing model which has been agreed to and implemented. Funding recipients will be required to submit annual reports to the Ministry on investment activities and other delivery-related activities, including business support services funded by the AEDF. At minimum, annual reports must include: Business & Community Fund (Stream 1) Application Guide 11

Information on how funding recipients are contributing to the objectives of the AEDF, the Business & Community Fund and the approved proposals. Audited financial information on AEDF funds that have been committed, the amount of funding to be carried over into the subsequent fiscal year and details on how any returns from AEDFbacked investments were used. The number of beneficiaries funded (by industry sector and geographic location), anticipated and actual jobs created, and the number of projects completed and in progress. A sample of case studies (e.g., success stories ). Information required for the 2016-17 annual report should be included in the final report to the Ministry of Aboriginal Affairs. Any unspent funds must be returned to the Ministry at the end of the project. The final report must also include data on performance measures for the project. Reporting requirements will be outlined in the Funding Agreement. Additional information on reporting, acknowledgement, oversight and project management is outlined in the AEDF Handbook. Business & Community Fund (Stream 1) Application Guide 12

4. Proposal Requirements The following section outlines additional requirements specific to proposals for projects to be funded through the Business & Community Fund. AEDF requirements are outlined in the AEDF Handbook, which should be reviewed prior to the development of projects and before an application is submitted. Proposals must also be consistent with the requirements outlined in Section 3 of this guide. Information on how a proposed project meets AEDF and stream-specific requirements must be included in the business case, proposal details and business plan. 4.1 Business Case Applicants must provide a business case outlining why AEDF funding is required to enhance the applicant s ability to provide financing and related supports to Aboriginal entrepreneurs, businesses and communities. More information on what to include in the business case is found in Section 3.10 of this guide and Section 4.4 of the AEDF Handbook. 4.2 Proposal Details Proposed deliverables must be consistent with and contribute to the objectives of the AEDF and the Business & Community Fund. Proposals must also be consistent with AEDF requirements outlined in the AEDF Handbook. Proposals must demonstrate how funding will advance the objectives of the Business & Community Fund, specifically: Enhancing AFIs ability to deliver business support services, particularly sharing information and linking businesses to other provincial government supports; Enhancing community-level economic development; Providing financing to ensure promising projects are viable and move forward when other funding sources have been exhausted; and Enhancing Aboriginal communities and businesses ability to leverage other funding and financing sources for economic development projects. Proposals must demonstrate how funding will be used to support Aboriginal communities and on- and off-reserve Aboriginal entrepreneurs and businesses through: Increased access to financing for Aboriginal communities and businesses; Increased core economic capacity building for Aboriginal communities and organizations; Increased innovation of Aboriginal communities and businesses Increased competitiveness of Aboriginal communities and businesses; and/or Increased participation of Aboriginal people in high-potential sectors (e.g., resource development, social enterprise, cultural industries, and tourism). Proposals must provide details on how AEDF funding will be used for investment instruments, including: The percentage of funding used for Community Economic Grants and Business Financing components; The type of activities to be supported for projects funded with Community Economic Grants; Business & Community Fund (Stream 1) Application Guide 13

The maximum amount of funding for each project eligible for Community Economic Grants; The type of investment instruments to be offered under the Business Financing component and a business case for each proposed instrument; The percentage of funding allocated for each investment instrument to be offered under the Business Financing component; The maximum amount of funding for each project eligible for each type of investment instrument to be offered under the Business Financing component; The types of business support services to be provided using AEDF funding; and The amount of funding allocated for business support services funded with AEDF funding including any administration and/or delivery costs related to providing enhanced support services. Funding must not be used for financing supports that are currently supported by other provincial sources, including the Ministry of Aboriginal Affairs. The proposal must provide information on the proposed geographic catchment area, anticipated jobs and businesses that could be created, and industry sectors that may be supported (including information on any proposed target sectors). The proposal should also outline, where applicable, any links to other government supports where AEDF would add value or increase the impact of existing government support. If applicable, the proposal should also include details on any proposed theme(s) or focus area(s) for funding (e.g., start-ups, early stage businesses, innovation, going global, productivity and/or another focus) backed by a sound rationale and business case based on market need and/or gaps. 4.3 Business Plan Proposals must include an appropriate business plan demonstrating that the organization has the capacity and infrastructure needed to administer AEDF funding. Business plans must include: A process for identifying and engaging promising/high-potential start-up and early stage businesses and other eligible beneficiaries identified in section 3.11 of this guide where AEDF funding would support development of a new product, service or process; Viable and innovative approaches for supporting eligible beneficiaries through new or enhanced support services; Mechanisms to capture and report on the performance of eligible beneficiaries receiving funding, including a schedule of reporting requirements (e.g. quarterly reporting on milestones and project targets); Financial viability and the appropriate fiscal management systems to ensure accountability of public funds, including appropriate board experience and management structure; A demonstrated ability to deliver success (e.g., the identification of any organizational experience that would be applicable to the project); Appropriate conflict of interest guidelines; and Business & Community Fund (Stream 1) Application Guide 14

A review committee, to be approved by the Ministry of Aboriginal Affairs, to evaluate proposals from eligible beneficiaries based on identified transparent criteria. 4.4 Performance Measures Only projects contributing to the objectives of the AEDF and the Business & Community Fund will be considered. Recommended performance measures are outlined below, although some measures may not be applicable to all proposals. Additional performance measures may also be proposed. Outcome Improving access to financing for Aboriginal small- and medium-sized enterprises (SMEs), particularly startups and early stage businesses Growth, competitiveness and economic diversification of Aboriginal businesses and communities Growth of innovative Aboriginal businesses Growth of Aboriginal businesses going global and accessing new markets outside Canada Performance Measures Total financing (in dollars) secured by Aboriginal businesses, communities, organizations or other Aboriginal partners through the AEDF Total amount (in dollars) of financing secured by Aboriginal businesses, communities, organizations or other Aboriginal partners from other sources leveraging support from the AEDF Total sales (in dollars) increase as a result of support to Aboriginal businesses Number of new projects initiated by Aboriginal businesses, communities or organizations as a result of support Number of new Aboriginal start-up businesses as a result of support (by sector) Number of Aboriginal businesses in operation within 12 and 24 months of receiving support (by sector) Number of jobs created or sustained as a result of support (by sector) Number of jobs sustained as a result of support within 12 and 24 months of receiving support (by sector) Number of Aboriginal businesses that developed a new market-ready product, service or process using AEDF funding Total investment (in dollars) in research and development in new products and services as a result of support (by sector) Number of businesses that have developed an international marketing plan using AEDF funding Number of businesses with new business activity in an international market as a result of support Business & Community Fund (Stream 1) Application Guide 15

Outcome Increased economic development capacity including community economic planning and access to skills and employment training to participate in economic opportunities Performance Measures Number of economic development-related positions created or sustained as a result of support Number of Aboriginal people accessing skills and training programs as a result of support (including figures on positive employment outcomes, if available) Improved awareness of government supports to respond to Aboriginal economic development needs Number of participants attending sessions that promote awareness of provincial government economic development programs Percentage of participants Satisfied with workshops or information sessions delivered with AEDF support 4.5 Conditions of Application All applications must be complete and signed by a designate with the authority to bind the institution in a legal agreement. An application that does not follow the prescribed format, or is incomplete, will not be evaluated. Additional materials other than those requested will not be accepted or considered to be part of the application. Information on the application process is found in Section 5 of this guide. The Ministry of Aboriginal Affairs reserves the right to ask applicants with similar or complementary projects to consider collaborating in broader partnerships subject to project timelines and funding availability. The Ministry also reserves the right to impose whatever conditions it deems advisable in the acceptance of an application. The Ministry, in its sole and absolute discretion, may determine whether to provide funding, the amount of any funding, and the purpose for which the funding will be used. The Ministry also reserves the right to hold another call for proposals should it be required. Business & Community Fund (Stream 1) Application Guide 16

5. About the Application Form The instructions in this section provide guidance to applicants concerning which questions to complete for the online Business & Community Fund application in Grants Ontario. For any questions in the application that an applicant identifies as not applicable, you must put N/A in the space provided. The online application has general instructions below each heading. When on the Grants Ontario website, position the mouse cursor over a key word for additional information to appear. All fields marked with a star/asterisk in the application are mandatory and must be completed. Once an application is submitted electronically through Grants Ontario, an email will be sent to the lead application contact confirming receipt of the application. If you do not receive confirmation within 24 hours of submission, please contact the Grants Ontario Customer Service Line. 5.1 Application Questions The following sections correlate directly to the sections of the application available through Grants Ontario. Although alphabetized, you will notice some gaps in the letters. Grants Ontario utilizes a standardized application for various government funding programs. Certain sections may not be applicable for the AEDF. The sections outlined below are those that are used for the Aboriginal Economic Development Fund Business & Community Fund application. Sections A to C Organization Information, Address and Contact Information Instructions for these sections are provided directly in the online application form. Since organizations must register with Grants Ontario to access the online Business & Community Fund application, most of the information requested in these sections will be pre-populated (i.e., automatically filled in) using data from the registration process. Sections A and B cannot be edited on the application form. If there is incorrect information, contact the Grants Ontario Customer Service Line and explain what needs to be changed or added. Section C may contain contact information about your organization that was entered during a previous application submission. You may edit this information if you wish or leave it as it appears. Section D Organization Capacity This section is for you to tell us about your organization, including the number of staff and volunteers (Questions 1 to 3). For Question 4 (Accumulated Deficit), include your accumulated deficit in the space provided. If your organization has a zero balance or surplus, put 0 in the space provided. For Question 5 (Accumulated Surplus, include your accumulated surplus in the space provided. If your organization has a zero balance or deficit, put 0 in the space provided. Business & Community Fund (Stream 1) Application Guide 17

Note: The surplus or deficit noted in the questions above must match the information indicated in the financial statements for your organization, which must be submitted as an attachment with this application. For Question 6, describe your organization s core business or field of activity. Note that you can enter a maximum of 2,000 characters. For Question 7, outline how your strategic plan guides your organization s activities. For Question 8, outline your organization s risk management plan for prevention of abuse to clients, members and staff. For Question 9, provide information on how is your Board elected. If not applicable, indicate N/A in the space provided. For Question 10, provide information on how the composition of your Board represents the community or communities it serves. For Question 11, provide information on the practices/procedures that exist to ensure the Board conducts its activities with accountability and transparency. If not applicable, indicate N/A in the space provided. For Question 12, describe your organization s history of managing similar projects and include past achievements. Note that you can enter a maximum of 2,000 characters. Provide a concise description of your organization s history, governance structure, principal activities/services as well as a description of your major achievements. For Question 13, describe your organization s ability and capacity to successfully undertake this project. You may enter a maximum of 2,000 characters. Describe the personnel (i.e., key staff from your organization, consultants or experts) that will be responsible for carrying out your project. If hiring new staff, provide an outline of responsibilities to be undertaken. If hiring a consultant or expert, provide an outline of all services to be rendered. Note: Hired consultants/experts must not be employees or voluntary members of the applicant or its partners. For Question 14, provide details on your staff and relevant staff experience for those involved in the project. Provide details on staffing and relevant staff experience for those managing or running your initiative. You may enter a maximum of 2,000 characters. For Question 15, describe successful strategies your organization has used to ensure achievement of program outcomes. If not applicable, indicate N/A in the space provided. For Question 16, describe your organization s experience developing, tracking and reporting on outcomes and performance measures successfully. You may enter a maximum of 2,000 characters. Business & Community Fund (Stream 1) Application Guide 18

Section E Grant Payment Information From the drop down next to 1 Payment Organization, select the appropriate option available. If you select Other, please fill out the address fields in this section. This is where your cheque will be mailed should you select cheque as your payment option and your application is approved for a grant. Enter the contact information for the most appropriate person to be answering payment-related questions. For Method of Payment you have the option of selecting Cheque or Electronic Fund Transfer (EFT). EFT is the preferred method of payment. Section F Application Contact Information Provide the name of the person who will be managing the day-to-day activities of the Aboriginal Economic Development Fund Business & Community Fund applicant file. This person will also receive the automated application submission confirmation email provided they have entered a valid email address. Section G1 Project Information Provide information about the project, including proposed project outcomes, evaluation plan and risk assessment. The project start date (Question 2) should be no earlier than January 1, 2015. The project end date (Question 3) should be no later than March 31, 2017. For Question 7 (Project Scope), select one of local, regional or provincial only. For Question 8 (Host Municipality), enter the name of the host community (if applicable). For Question 10 (Project Summary), provide a brief description of your project. You may enter up to 2,000 characters. Note that if your application is successful, this wording may be used by the Ministry in its website and other public materials. For Question 11 (Project Description), include project details described in Section 4.2 of this guide. The Project Description should also include your business plan (see Section 4.3 of this guide). You may enter a maximum of 4,900 characters. For Question 12 (Project Objectives), include information on how the project will achieve the objectives and requirements of the AEDF and the Business & Community Fund as outlined in the AEDF Handbook and this guide. You may enter up to 2,000 characters. For Question 13 (Rationale/Need), include your business case (see Section 4.1 of this guide). Applicants must also describe why the project is viable and what steps or measures will be taken to ensure that the project does not overlap with existing projects. The project may complement a similar project, but should not duplicate efforts for the same target audience. You may enter up to 1,000 characters. Business & Community Fund (Stream 1) Application Guide 19

For Question 14 (Project Beneficiaries), applicants must include details of how the project will serve beneficiaries as defined in this guide. Also include information on the proposed catchment area. You may enter up to 2,000 characters. For Question 15 (Risk Assessment and Management), provide information on any risks associated with delivering the project and how these risks will be mitigated. You may enter up to 2,000 characters. For Question 16 (Project Outcomes), include information on anticipated outcomes. Outcomes must be aligned with the objectives of the AEDF and the Business & Community Fund, as outlined in the AEDF Handbook and this guide. You may enter up to 1,000 characters. For Question 17 (Evaluation Plan/Criteria), include information on how performance will be monitored and evaluated. Note that lead applicants are responsible for ensuring data is gathered by partners. Lead applicants are also responsible for ensuring partners deliver project requirements. You may enter up to 2,000 characters. Applicants are not required to complete the Event Start and End Dates (Question 4 and 5). For Target Sector (Question 6) and Project Priority (Question 9), select N/A. Any target sector information, if applicable, should be included in the Rationale/Need section of the application form. Section G2 Additional Questions Applicants must answer the following questions within the allotted 5,000 character limit for each. For Joint Applications, the Applicant must enter the information for each of the eligible organizations represented. 1. Have you received or will you receive funding from another provincial program for this project, yes or no? If yes, identify the funding source(s) and amount. 2. Have you received or will you receive funding from any other sources for this project, yes or no? If yes, identify the funding source(s) and amount. 3. If you have sought but not been approved for funding from any other source for this project, please explain why. 4. Have all Final Reports been submitted for past Province of Ontario-funded projects? 5. If any reports have not been submitted please provide a brief explanation. 6. What type of applicant are you, single or joint? Section G3 Project Work Plan The Work Plan is designed to provide the Ministry with a clear idea of how the organization and any delivery partners will carry out the project. The Work Plan should demonstrate a systematic approach as to how you will accomplish all phases of the project. A comprehensive Work Plan with specific achievable milestones demonstrates strong organizational capacity and is an indicator of likely project success. Business & Community Fund (Stream 1) Application Guide 20

Each row of the Work Plan contains six fields that must be completed: Key Milestones, Activities, Start Date / End Date, Responsibility, and Performance Indicator. You may add as many rows as you like by clicking on the + symbol to the far right of the table. If you have added a row in error, press the X symbol to the far left of the table to delete the selected row. Applicants are required to include the following work plan components in their proposals: Key Milestones mark the completion of a work phase; Activities tasks that will be undertaken to complete the project; Start Date anticipated start date of each activity; End Date anticipated end date of each activity; Responsibility indicates who is responsible for completing the activities; and, Performance Indicator signal that demonstrates task achieved successfully. When drafting the Work Plan remember to complete all fields in the row as each cell is mandatory and must contain a response. You will not be able to submit your application if a cell is blank in your Work Plan. Applicants are required to prepare a work plan for each year that they are applying for funding. Each section in the Work Plan for each year must be completed. Section I Performance Measures Applicants must record a number in the Goal column for each of the Performance Measures listed. Performance Measures are in two sections: Ministry Provided Performance Measures for which you enter only the goal (see Section 4.4 of this guide); and Client Provided Performance Measures for which you enter the metric, description and goal. Please include any additional performance measures that your organization will use to gauge the success of project. If a Ministry-provided performance measure is not applicable, enter N/A. Funding recipients will be responsible for collecting data from all delivery partners and provide information on performance measures in reports to the Ministry, as outlined in the Funding Agreement. Information on performance measures is also included in the AEDF Handbook. Section J Partner / Stakeholder Information (Joint Applicants Only) For Joint Applicants, use this section to identify all of the organizations that are being represented. Single Applicants are not required to complete this section. Section Z Declaration / Signing At least one authorized signing authority must electronically sign the application by clicking the Sign Document button. All contacts listed in Section C of the application form will be listed here as possible signatories if the Signing Authority checkbox is checked under their contact information in Section C. Business & Community Fund (Stream 1) Application Guide 21