Embracing Indigeneity in the Cannabis Industry: Unlocking Funding Opportunities
In the rapidly evolving legal cannabis industry, promoting diversity and equity is crucial, particularly for Indigenous communities and businesses. To bridge the gaps in capacity and funding, the Indigenous Cannabis Business Fund (ICBF) has been established. Developed in partnership with prominent organizations such as the BC Assembly of First Nations, BC. Aboriginal Financial Institutions, Health Canada & Indigenous Services Canada Strategic Partnership Initiatives, and the Province of BC through the BC. Cannabis Secretariat, the ICBF, aims to foster inclusivity and empower Indigenous participation in the regulated cannabis sector.
Supporting Indigenous Business Development
The primary goal of the ICBF initiative is to support Indigenous business development within the regulated cannabis sector. By providing financial assistance, the fund aims to facilitate establishing new businesses, expanding existing ones, and transitioning unregulated cannabis businesses into the regulated market. Cultivation, processing, distribution, and ancillary services are among the eligible business types that can benefit from ICBF funding and other available financial options.
Collaborative Partnership for Effective Funding
To ensure the efficient administration and co-delivery of funding opportunities, the ICBF initiative is administered by the New Relationship Trust, in collaboration with participating BC. Aboriginal Financial Institutions. This collaborative approach ensures the effective allocation of resources and supports Indigenous entrepreneurs and businesses in accessing the financial support they need to thrive in the cannabis industry.
ICBF Initiative Goals
The ICBF initiative encompasses several key goals that promote economic growth and equity in the cannabis space. These goals include:
Indigenous employment creation, skills development, and training opportunities.
Economic diversification, with a specific focus on rural and remote communities and Indigenous women entrepreneurs.
Development, public awareness, and supply chain participation to promote indigenous brands and products.
Assisting Indigenous businesses, entrepreneurs, and communities in navigating and adapting to the post-legalization cannabis environment.
Balancing community health, knowledge, and safety needs with economic growth opportunities.
Providing support for Indigenous entrepreneurs and businesses to navigate complex regulatory processes.
Eligibility and Application Process
Eligibility for ICBF funding is open to a range of applicants, including BC. First Nation governments, businesses, and economic development corporations, Tribal Councils, Indigenous corporations, partnerships, associations, co-operatives, institutions, as well as Indigenous entrepreneurs and businesses (First Nation, Métis, Inuit). To qualify, businesses must demonstrate a minimum of 51% Indigenous ownership, with Indigenous control in proportion to the equity invested.
Applicants must be willing and able to contribute financially to the project, as grants from the ICBF are not stand-alone sources of funds. Projects located on-reserve must provide evidence of community engagement and support from the First Nation government. Additionally, businesses seeking both federal and provincial licenses must consider entering into government-to-government agreements with the Province to enable participation in production and retail simultaneously.
The application process involves two steps. First, applicants must complete the Expression of Interest (EOI) form to provide essential information about their business opportunity, capacity needs, and funding requirements. After submission, applicants will be contacted within 5 to 7 business days to discuss the next steps. Following this, the application undergoes screening and due diligence procedures conducted by an Aboriginal Financial Institution (AFI) in BC.
Funding Caps and Intake Frequencies
The ICBF provides funding with a maximum cumulative contribution of $250,000 per project. In addition, funding caps are set for specific activities, such as business planning costs (up to 75% of eligible costs), business advisory services and staff training (up to 75% of eligible costs), and business capitalization (up to 40% of eligible costs).
The ICBF operates with a continuous intake and approval process during specific application periods. However, it is important to note that the application period concludes either when the intake closing date arrives or when the annual funding available has been exhausted.
Unlocking Opportunities for Indigenous Entrepreneurs
The ICBF funding opportunity marks a significant milestone in supporting Indigenous participation in the cannabis industry. By blending traditional Indigenous methods with modern business models, communities can leverage the potential of this emerging market while preserving their cultural heritage. In addition, the ICBF aims to empower Indigenous entrepreneurs and businesses to navigate the regulatory landscape, fostering economic growth and community prosperity.
To access further information and apply for the ICBF funding opportunity, please visit the ICBF website.
The Indigenous Cannabis Business Fund serves as a catalyst for Indigenous communities and businesses to flourish in the regulated cannabis industry. By offering funding support, the ICBF enables Indigenous entrepreneurs to bring their visions to life while promoting economic diversification, employment creation, and preserving Indigenous traditions. This initiative sets the stage for a more inclusive and equitable cannabis industry, embracing Indigenous peoples' valuable contributions and cultural heritage.