Shannin Metatawabin, chief executive officer of National Aboriginal Capital Corporations Association in Toronto on June 15.Cole Burston/COLE BURSTON/THE GLOBE AND MAIL
A government-backed loan fund for Indigenous entrepreneurs has received its first private-sector investment with a $3-million commitment from U.S. fintech Block Inc. SQ-N
The Indigenous Growth Fund, which was launched in the 2019 federal budget and made its first disbursements in March, is managed by the National Aboriginal Capital Corporations Association (NACCA), an umbrella group for more than 50 Indigenous-controlled lending agencies known as Aboriginal Financial Institutions or AFIs.
The fund directs capital to AFIs so they can make loans to entrepreneurs in their communities. Indigenous entrepreneurs face systemic barriers to lending at other financial institutions, such as restrictions on owning property on-reserve, that make it harder to post collateral for bank loans.
Block’s investment was announced Thursday and joins $150-million in public funds from the federal government, the Business Development Bank of Canada and Farm Credit Canada.
Shannin Metatawabin, NACCA’s chief executive, said it was important for the long-term prosperity of the fund and Indigenous communities to work with private-sector partners.
“The Government of Canada can’t be always relied on to provide all the capital to the Indigenous community,” Mr. Metatawabin said. “We need the capital market to participate and we need instruments created that allow them to participate in the ways that they understand and that they earn interest back.”
Block’s $3-million investment makes it a limited partner in the fund and allows it to redeem the investment over time.
The technology company, which also offers a range of financial products to small businesses through its Square arm, said in a news release that the money comes from a US$100-million commitment to direct money to underserved groups.
Mr. Metatawabin said the Indigenous Growth Fund is courting more private-sector investors by making the case that the fund is a good way to meet environmental, social and governance (ESG) goals.
“I think Indigenous people are a big part of the S criteria,” he said.
Get the Report on Small Business newsletter, essential reading for hard-working entrepreneurs pursuing growth and expansion. Sign up today.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
