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Researchers discovered that Indigenous companies are facing significant barriers to getting financial aid as the COVID-19 pandemic, and related shutdowns, drag on into 2021.
National Aboriginal Capital Corporations Association, the National Indigenous Economic Development Board, and the Canadian Council for Aboriginal Business reportedly surveyed more than 825 Indigenous businesses between Dec. 18, 2020, and Feb. 1, 2021. The results, released this week, present a stark reality for Indigenous companies attempting to survive the pandemic.
Researchers say that though government aid is available to Indigenous companies in the form of loans, along with rent and wage subsidies, many survey respondents said they did not apply because they were not confident they could pay back the loans or deferrals.
However, nearly three-quarters of the business owners surveyed said that they needed more financial support. Nearly half said that, unless they got some form of aid, they did not expect to begin operating until July.
Researchers also found that more than half of the Indigenous companies surveyed qualified for some form of government aid, but many faced issues meeting application criteria. Additionally, nearly 50 percent said that financial requirements stopped them from getting needed aid.
One significant hurdle cited by many survey respondents was simply wading through the paperwork to determine whether they are eligible.
“This really indicates a missing link between Indigenous business needs and the accessibility and also the relevance of government supports that are offered,” said Samantha Morton, the Canadian Council for Aboriginal Business’s director of research told Global News.
The study also showed that more than a third of Indigenous companies do not seek loans from traditional banks or credit unions; however, a third did seek loans from Aboriginal Financial Institutions. Another percentage reported financial support from tribal councils or Indigenous governments.
“We recognize that Indigenous businesses face unique challenges and may have been disproportionately affected by this pandemic due to their unique structure,” said Marie-Emmanuelle Cadieux, communications director for the Minister of Indigenous Services, in an email in Global News.
Morton told reporters that government programs need to be more accessible to Indigenous companies attempting to survive the pandemic. Business owners do not have “12 hours to cull through government supports, find out which are relevant and applicable to their business, and then go through the application process,” she said and also recommended offering grants or other forms of relief that do not require repayment.
Were you able to access financial support for your company during the pandemic? Why or why not? Tell us in the comment section below.
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2 thoughts onIndigenous Companies Struggle To Find Help During Pandemic, Study Finds
I received some crb cheques but that’s it. I lost my business and even had to pay to attend university out of my own pocket. Benefits of being indigenous doesn’t work
Yet the Canadian government puts $250 million into a new black entrepreneurship fund.