Article – First Nations Bank and BDC are joining forces to create a $100 million fund designed to help Indigenous entrepreneurs acquire existing businesses – potentially unlocking a new pathway for economic reconciliation while addressing Canada’s looming business succession crisis.
The new Indigenous Growth Fund will focus on acquisition financing, providing Indigenous business owners with capital to purchase established companies across various sectors. In a country where 40% of small business owners plan to exit their businesses within the next five years, this initiative arrives at a critical junction.
“What we’re creating here isn’t just funding – it’s an opportunity to transform the landscape of business ownership in Canada,” explains Keith Martell, CEO of First Nations Bank. “When Indigenous entrepreneurs can acquire established businesses, they gain not just assets but also existing customer bases, supply chains, and operational infrastructure.”
The initiative represents one of the largest targeted Indigenous business funding programs in Canadian history. While previous government programs have focused primarily on startups and small-scale entrepreneurship, this approach tackles a different challenge: helping Indigenous business leaders scale through strategic acquisitions.
The mechanics of the fund are straightforward but powerful. BDC (Business Development Bank of Canada) will provide $75 million in financing capacity, while First Nations Bank will contribute $25 million and handle much of the relationship management with borrowers. Loans will range from $250,000 to $2.5 million, focusing on established businesses with proven track records.
According to Statistics Canada, Indigenous-owned businesses already contribute more than $30 billion annually to the Canadian economy. However, these enterprises often face unique barriers when seeking growth capital, particularly for larger transactions like business acquisitions.
“Access to capital has consistently been the number one barrier cited by Indigenous entrepreneurs,” notes Shannin Metatawabin, CEO of the National Aboriginal Capital Corporations Association. “What makes this fund groundbreaking is its focus on acquisition financing rather than just startup capital.”
The timing couldn’t be more strategic. Canada faces what economists have termed a “silver tsunami” – an unprecedented wave of business owners reaching retirement age without clear succession plans. The Canadian Federation of Independent Business estimates that $1.5 trillion in business assets could change hands over the next decade.
This demographic reality creates both a challenge and an opportunity. Without buyers, many viable small and medium-sized businesses may simply close, taking jobs and economic activity with them. The Indigenous Growth Fund aims to connect these businesses with qualified Indigenous entrepreneurs who can maintain and grow these operations.
“This isn’t just about changing who owns the business – it’s about preserving economic activity in communities across Canada,” explains Michael Denham, President and CEO of BDC. “When a local business closes because no successor can be found, that impacts everything from employment to community services.”
The fund also addresses another reality: building businesses from scratch carries significantly higher risk than acquiring established operations. For Indigenous communities looking to build sustainable wealth, business acquisition represents a potentially faster path to economic participation.
Robert McPhee, an Indigenous business consultant based in British Columbia, sees the initiative as transformative. “For decades, economic reconciliation discussions have focused on resource revenue sharing or small business development. This fund introduces a third path – allowing Indigenous entrepreneurs to acquire established businesses with proven cash flows.”
The program will also provide technical assistance beyond just financing. Indigenous entrepreneurs seeking to acquire businesses will receive support in areas like due diligence, valuation, and transition planning – critical components for successful acquisitions that often prove challenging for first-time buyers.
Canada’s Minister of Indigenous Services, Patty Hajdu, called the initiative “an important step toward economic reconciliation,” adding that “building Indigenous wealth through business ownership creates opportunities that extend far beyond the individual entrepreneur to benefit entire communities.”
Early interest in the program has been strong. According to First Nations Bank, they’ve already identified potential acquisition targets in sectors ranging from manufacturing and transportation to professional services and retail.
One notable aspect of the fund is its focus on businesses outside traditional sectors. While natural resources and government contracting have historically been major areas for Indigenous business activity, this initiative explicitly targets a broader range of industries.
“We’re looking to support acquisitions across the entire economy,” notes Martell. “This includes technology companies, service businesses, manufacturing – essentially any viable operation where an Indigenous entrepreneur can create value.”
The fund also addresses a reality many Indigenous business leaders have long noted: the limitations of focusing exclusively on startups. While new ventures are vital for innovation, they typically generate fewer jobs and take longer to achieve profitability than established businesses.
Critics might question whether sufficient deal flow exists to deploy the full $100 million. However, program administrators point to the strong growth in Indigenous entrepreneurship – up 15% since 2016 according to the latest census data – as evidence of a robust pipeline of qualified buyers.
The initiative launches at a time when Indigenous economic participation has become a national priority, referenced in both the Truth and Reconciliation Commission’s Calls to Action and the federal government’s economic reconciliation framework.
As Canada grapples with how to make reconciliation meaningful beyond symbolic gestures, programs like this offer concrete economic pathways. The success of the Indigenous Growth Fund will ultimately be measured not just in dollars deployed, but in businesses preserved, jobs maintained, and wealth created in Indigenous communities across the country.
