Contributions to support land management and economic development: terms and conditions

Table of contents

  1. Introduction
  2. Legal and policy authority
  3. Purpose, program objectives and expected results
  4. Eligibility
  5. Type and nature of eligible expenditures
  6. Total Canadian government funding and stacking limits
  7. Method for determining the amount of funding
  8. Maximum amount payable
  9. Basis on which payments will be made
  10. Application requirements and assessment criteria
  11. Due diligence and reporting
  12. Official languages
  13. Intellectual property
  14. Repayable contributions
  15. Redistribution of contributions
  16. Other terms and conditions

1. Introduction

The Department of Indigenous Services provides funding for lands and environmental management and economic development as matter of policy.

Supporting land management and economic development leads to greater participation in the economy and improved economic prosperity for First Nations Canadians.

In 2009, the government released a comprehensive Federal Framework for Aboriginal Economic Development to align federal actions to better support the participation of First Nations Canadians in the economy. To respond to the opportunities and challenges facing Indigenous economic development and support greater participation of First Nations Canadians in the economy, 3 complementary programs exist to:

The Lands and Economic Development Services Program (LEDSP) provides support to First Nations and Inuit Communities to assist with enhancing the economic development, land and environmental capacity of communities and to support the establishment of the conditions for economic development to occur, increasing their participation in the economy. LEDSP has 4 components:

The Community Opportunity Readiness Program (CORP) provides project-based funding for First Nations and Inuit Communities for a range of activities to support communities' pursuit of economic opportunities. Where First Nations and Inuit communities, or their representative organizations, identify opportunities and lack the financial resources to pursue them, CORP will allow them to submit proposals to obtain additional funding.

The Aboriginal Entrepreneurship Program (AEP) seeks to increase the number of viable businesses in Canada owned and controlled by First Nations Canadians, provide a supportive business environment for First Nations Canadians and advocate and inform employers about the hiring of Indigenous peoples. AEP has 2 components:

2. Legal and policy authority

3. Purpose, program objectives, expected results

The lands and economic development programs support increased participation of First Nations communities in the Canadian economy and enable Indigenous peoples to pursue opportunities for employment, income and wealth creation.

Note: Amendments to these terms and conditions contain time-limited exceptional changes to help Indigenous groups deal with exceptional circumstances and challenges that exist for the duration of the COVID-19 pandemic. Such amendments will be in place until March 31st, 2023. Amendments related to the COVID-19 pandemic should not be understood to represent an ongoing commitment by ISC for the future of the program or for other emergency situations. These time-limited amendments seek to ensure that funds to respond to the COVID-19 pandemic can be advanced to eligible recipients without delay.

The specific objectives of each program component are the following:

Lands and Economic Development Services Program seeks to:

  • enable First Nations and Inuit communities and organizations they mandate to deliver community economic development services, which includes community economic development planning and capacity development initiatives, the development of proposals and levering of financial resources and carrying out economic development activities. In some instances, recipients may decide to carry out these activities by hiring economic development officers
  • enable First Nations to assume greater control over reserve land, resources and environment including land use planning, environmental management and compliance, on behalf of the Minister and pursuant to the Indian Act
  • provide First Nations with modern land management tools and capacities. The initiative facilitates the transition from the Indian Act to the Framework Agreement for First Nations Land Management and provides framework agreement First Nations with the capacities and processes for land code development
  • enable the provision of lands, environmental and economic development support services to communities, to assist in achieving LEDSP's objectives. This also includes services that prevent the contamination of reserve lands and other lands under ISC's custodial responsibility

Community Opportunity Readiness Program seeks to:

  • increase economic development by providing proposal based financial support to First Nations communities to assist in their pursuit of, and participation in, economic opportunities. ISC assesses proposals based on their community economic impacts and supports projects with the best impacts

Aboriginal Entrepreneurship Program seeks to:

  • increase the number of viable businesses in Canada owned and controlled by First Nations Canadians and to provide a supportive business environment for First Nations Canadians in all areas of Canada
  • cultivate a culture of entrepreneurship in the First Nations community and to improve access to business opportunities
  • establish, expand and diversify the network of Indigenous-owned and controlled financial institutions providing developmental capital in Canada which are functionally complementary to the mainstream financial sector
  • enhance access to capital for Indigenous businesses in Canada that have difficulty in obtaining conventional commercial financing
  • enhance the capacity of First Nations financial and business development organizations to provide financial services, business information and developmental support services
  • increase First Nations participation in economic benefits from major resource development and energy investments
  • increase the participation of Indigenous people in the economy through economic and employment opportunities

According to Indigenous Services Canada's 2020 to 2021 Departmental Results Framework (DRF), LEDSP, CORP and AEP supports the departmental result Indigenous communities build economic prosperity as part of the core responsibility Governance and Community Development Services.

The expected ultimate outcome of LEDSP, CORP and AEP is that Indigenous communities build economic prosperity. ISC will monitor the achievement of results through the ongoing monitoring and assessment of its Programs Performance Information Profile (PIP).

The expected ultimate outcome of LEDSP, CORP and AEP as it relates to funding for COVID-19 relief is that Indigenous communities and businesses are supported by the department to respond to and recover from economic disruptions directly related to the COVID-19 pandemic. ISC will determine the approach to monitor and assess its performance related to the current economic event in future public reporting.

4. Eligibility

4.1 Eligible recipients

Category of eligible recipient LEDSP allocations LEDSP targeted CORP AEP
First Nations and Inuit communities and their governments, including tribal councils Table note 8 Yes Yes Yes Yes
Cree Trappers' Association, Cree Outfitting and Tourism Association and Cree Native Arts and Craft Association and the Inuit Art Foundation Table note 5 Yes      
Organizations and associations controlled by Indigenous peoples except for those with charitable or religious purposesTable note 9Table note 10Table note 11 Yes Yes Yes Yes
Non-Indigenous organizations and associations, except for those with charitable or religious purposesTable note 1Table note 6   Yes Yes Yes
Indigenous individuals, including businesses owned and controlled by Indigenous peoples       Yes
Canadian owned and controlled banks, credit unions and trust companies authorized to make commercial loans and are provincially or federally regulated       Yes
Private equity providers       Yes
A provincial or federal crown corporation Table note 2       Yes
Municipal governments, labour organizations, universities, colleges and other learning institutions Table note 3       Yes
The Province of Ontario, in relation to the Canada - Ontario Resource Development Agreement   Yes Yes  
Other recipients performing delegated land management functions under sections 53 and 60 of the Indian Act on behalf of First Nations Yes Yes    
The First Nations Land Management Resource Centre (FNLMRC)Table note 7   Yes    
The Minister may, in exceptional circumstances, make contributions with respect to First Nations Business Development to other recipients for projects having a significant impact on First Nations Business DevelopmentTable note 4     Yes  

4.2 Eligible initiatives and projects

To be eligible, an initiative or project must support 1 or more objectives of this program.

The classes of eligible initiatives and projects are further described below.

Lands and Economic Development Services Program: Allocations

  • Economic development activities including, but not limited to, capacity development, community economic development planning and capacity development initiatives, the development of proposals and levering of financial resources and carrying out economic development activities. In some instances, recipients may decide to carry out these activities by hiring economic development officers
  • Initiatives that support First Nations communities' desire to take on a broad scope of land and environmental management responsibilities, including land use planning, environmental management and compliance, on behalf of the Minister
  • Initiatives that support First Nations who are signatories of the Framework Agreement on First Nations Land Management

Lands and Economic Development Services Program: Targeted funding

All of the above plus:

  • Initiatives that support First Nations and Inuit communities to undertake economic development activities including, but not limited to, capacity development, community economic development planning, the development of proposals to lever financial resources
  • Initiatives that support the development of land and resources under community control and access to opportunities from lands and resources not under community control
  • Initiatives that support compliance with the statutory provisions of the Indian Act and the processing of land management instruments such as leases and permits
  • Initiatives that support the activities of the Manitoba Treaty Land Entitlement Committee
  • Program management services in relation to community economic development
  • Initiatives that support the activities of recipients or Indigenous organizations supporting First Nations performing land management activities under the Indian Act
  • Initiatives that support Indigenous communities and representative organizations that exercise environmental stewardship over their lands including, but not limited to, addressing environmental concerns, increasing environmental awareness and capacity and complying with federal environmental legislation, departmental policies and directives
  • Initiatives that support the activities of  recipients or Indigenous organizations in supporting First Nations under the Framework Agreement on First Nations Land Management

Community Opportunity Readiness Program

Eligible initiatives under the CORP include:

  • Support to pursue economic opportunities
  • Support for community supported businesses where there is an equity gap, including business advisory services and training, commercial development and market development
  • Infrastructure development related to business development but not related to a specific eligible business
  • Business innovation and growth

Aboriginal Entrepreneurship Program

Eligible initiatives under the AEP include:

  • Establishing or expanding private equity instruments that foster the early and late stages of project development and help facilitate increased First Nations participation in major resource development and energy projects
  • Supporting loan-loss mechanisms aimed at attracting more private sector financing for First Nations businesses
  • Supporting the establishment and operations of a maximum of 4 national organizations to coordinate the activities of Indigenous-led financial institutions and corporations, with a maximum of 3 organizations that are distinctions-based, First Nations, Inuit and Métis and 1 which coordinates activities for Indigenous-led financial institutions of more than 1 distinctions-based group
  • Establishing, expanding or diversifying the operation of an Indigenous-led Financial Institutions that provides developmental loans, loan guarantees and other related financial services to Indigenous businesses
  • Supporting the operations of eligible business development organizations and associations providing business and financial services to Indigenous-led financial institutions, including the ongoing monitoring of Indigenous-led financial institutions
  • Providing an interest rate buy-down on loans obtained by Indigenous-led financial institutions s from senior lenders for the purpose of developmental lending
  • Institutional development, including training and development and business supports to Indigenous-led financial institutions s and other business development organizations
  • Studies for feasibility, business planning, market assessments and related marketing activities, negotiation, information gathering and diagnostic studies, consultations and other requirements with respect to establishing, expanding or diversifying the operation of an Indigenous-led financial institutions
  • Business advisory services and training
  • Commercial ventures, including business innovation and growth
  • Market development
  • Business development and advocacy activities, including advocacy activities to educate and inform employers about the advantages of hiring Indigenous peoples and activities to support partnerships with various stakeholders to increase the capacity of employers to recruit, promote, and retain Indigenous employers

COVID-19 related eligible initiatives under the AEP include:

  • Provide financial support to Indigenous businesses and support loan-loss mechanisms for Indigenous-led financial institutions that are going to be delivered as part of the relief measures package due to the exceptional circumstances created by the COVID-19 pandemic
  • Provide financial support to Indigenous businesses through First Nations organisations that are going to be delivered as part of the relief measures package due to the exceptional circumstances created by the COVID-19 pandemic

5. Type and nature of eligible expenditures

Eligible expenditures LEDSP allocations LEDSP targeted CORP AEP
Salaries, wages and benefits Yes Yes Yes Yes
Travel Yes Yes Yes Yes
Overhead, including, but not limited to, rent, utilities, supplies, minor repairs and maintenance, accounting and audit services and insurance Yes Yes Yes Yes
Minor machinery and equipment Yes Yes Yes Yes
Communications, including, but not limited to, development of content, translation, dissemination, advertising and signage Yes Yes Yes Yes
Professional, consulting, advisory and other services, including fees, travel Table note 1 and report production Yes Yes Yes Yes
Attendance at or participation in training and professional development programs, conferences, workshops, seminars, events, events and meetings, including but not limited to, tuition, registration, travel, testing and evaluation Yes Yes   Yes
Work experience including travel Table note 1 Yes Yes    
Preparation, organization and delivery of conferences, workshops, seminars, events, meetings and information sessions, including, but not limited to, room and equipment rentals, food and beverage, promotion, presenters' or facilitators' costs, travel Table note 1 Yes Yes   Yes
Preparation, organization and delivery of training and professional development, including, but not limited to, curriculum and materials, rentals and travel Table note 1 Yes Yes   Yes
Land surveys, environmental site assessments and appraisals Yes Yes Yes  
Awareness and information sessions, training and communications relating to environmental protection and compliance Yes Yes    
Feasibility studies, marketing, advertising and promotion Yes Yes Yes Yes
Costs related to economic infrastructure including, but not limited to, planning, design, identification, capitalization and acquisition of rights and rights-of-way Yes   Yes  
Capital costs relating the establishment, acquisition, expansion or modernization of an First Nations business Yes   Yes Yes
Bad debt expenditures related to Indigenous businesses that may occurred due to the exceptional circumstances of the COVID-19 pandemic can be anticipated. Under such exceptional circumstances, reasonable types of related expenditure, except for ineligible expenditures cited below, related to the COVID-19 pandemic will be eligible.       Yes
Capitalization costs including the establishment or expansion of financial instruments       Yes
Bad debt expenses and expenses associated with collections       Yes
Ineligible expenditures
Payments for services that would normally be provided without charge, for example, honoraria
The operation, repair and maintenance of economic or municipal infrastructure
Economic infrastructure which has a reasonable expectation of capturing capital and operating costs through user fees and other means and can function as a commercial enterprise
Costs for services provided by a federal or provincial government

6. Total Canadian government funding and stacking limits

The stacking limit maximum level of funding to a recipient from all sources, including federal, provincial, territorial or municipal for any 1 activity, initiative or project is 100% of eligible costs.

Recipients are required to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments, total government assistance and other sources that are expected to be received. Financial reporting shall show all sources of funding received by the recipient. Provisions for repayment shall be included in the funding agreements.

7. Method for determining the amount of funding

LEDSP funding allocations for economic development take into account various factors such as the population of an eligible community.

Factors considered for determining LEDSP funding allocations for land management under the Indian Act include a community's land mass and the number of land management instruments registered in the Indian Land Registry System.

For land management under the First Nations Land Management Act, the amount of annual FNLM developmental funding and annual operational funding payable to each First Nation will be in accordance with the approved FNLM funding formulas.

Targeted Funding, LEDSP, CORP and AEP The amount of funding is determined based on review and consideration of the proposal and taking into account the relevance of the proposal to the program's objectives and expected results, expected economic benefits accruing to First Nations individuals, businesses or communities and the demonstrated need for federal funding. Contributions will be determined based on the minimum level amount to ensure that the project or initiative is realized in accordance with the proposed time-frame, scope and location. Funding will be limited by the amount of available funds. Assessments may be conducted by internal or external reviewers, at a regional or national level.

Further details on funding are found in the Type and nature of eligible expenditures and Maximum amount payable sections of this document.

8. Maximum amount payable

The following maximum amounts are established to ensure that the most extreme circumstances could be funded as necessary. Recipients are not entitled to the maximum amount. Actual funding will depend on the overall availability of funding and, where applicable, a review of the proposed project/initiative.

Program Eligible initiatives Maximum annual amount payable per recipient
LEDSP :  Core Economic development activities including, but not limited to, capacity development, community economic development planning and the development of proposals to lever financial resources 100% of eligible costs up to $3 million
Initiatives that support First Nations communities' desire to take on a broad scope of land and environmental responsibilities under the Indian Act, including land use planning, environmental management and compliance, on behalf of the Minister 100% of eligible costs up to $3 million
Initiatives that support First Nations who are signatories of the Framework Agreement on First Nations Land Management 100% of eligible costs up to $3 million
LEDPS : Targeted Initiatives that support First Nations and Inuit communities to undertake economic development activities including, but not limited to, capacity development, community economic development planning, the development of proposals to lever financial resources

Initiatives that support the development of land and resources under community control and access to opportunities from lands and resources not under community control

Initiatives that support compliance with the statutory provisions of the Indian Act and the processing of land management instruments such as leases and permits

Program management services in relation to community economic development

Initiatives that support the activities of the Manitoba Treaty Land Entitlement Committee		 100% of eligible costs up to $10 million
Initiatives that support the activities of recipients and Indigenous organizations in supporting First Nations participating in the Reserve Land and Environment Management Program performing land management activities 100% of eligible costs up to $20 million
Initiatives that support Indigenous communities and representative organizations to exercise environmental stewardship over their lands including, but not limited to, addressing environmental concerns, increasing environmental awareness and capacity and complying with federal environmental legislation, departmental policies and directives 100% of eligible costs up to $10 million
Initiatives that support the activities of  recipients and Indigenous organizations in supporting First Nations under the Framework Agreement on First Nation Land Management 100% of eligible costs up to $30 million
CORP Support for recipients to pursue eligible opportunities

Support for community supported businesses where there is an equity gap, including business advisory services and training, commercial development and market development		 100% of eligible costs up to $3 million
Infrastructure development related to business development but not related to a specific eligible business

Business innovation and growth		 90% of eligible costs up to $10 million
CORP

COVID-19 targeted		 Support for recipients to pursue eligible opportunities

Support for community supported businesses where there is an equity gap, including business advisory services and training, commercial development and market development		 100% of eligible costs up to $7 million
Infrastructure development related to business development but not related to a specific eligible business

Business innovation and growth		 100% of eligible costs up to $10 million
AEP Establish or expand private equity instruments that foster the early and late stages of project development and help facilitate increased Indigenous participation in major resource projects

Support loan-loss mechanisms aimed at attracting more private sector financing for First Nations businesses

Supporting the establishment and operations of national organizations to coordinate the activities of Indigenous-led financial institutions and corporations

Establishing, expanding or diversifying the operation of an Indigenous-led financial institutions that provides developmental loans, loan guarantees and other related financial services to First Nations businesses

Supporting the operations of eligible business development organizations and associations providing business and financial services to Indigenous-led financial institutions, including the ongoing monitoring of Indigenous-led financial institutions

Providing an interest rate buy-down on loans obtained by Indigenous-led financial institutions from senior lenders for the purpose of developmental lending

Institutional development, including training and development and business supports to Indigenous-led financial institutions and other business development organizations		 100% of eligible costs up to $75 million
Studies for feasibility, business planning, market assessments and related marketing activities, negotiation, information gathering and diagnostic studies, consultations and other requirements with respect to establishing, expanding or diversifying the operation of an Indigenous-led financial institutions 100% of eligible costs up to $250,000
Business advisory services and training 100% of eligible costs up to $1 million
Commercial ventures, including business innovation and growth 75% of eligible costs up to $10 million
Market development 100% of eligible costs up to $250,000
Business development and advocacy activities, including advocacy activities to educate and inform employers about the advantages of hiring Indigenous peoples and activities to support partnerships with various stakeholders to increase the capacity of employers to recruit, promote and retain Indigenous employees 100% of eligible costs up to $500,000
AEP

COVID-19 targeted		 Providing financial support to Indigenous businesses and supporting loan-loss mechanisms for Indigenous-led financial institutions that are going to be delivered as part of the relief measures package due to the exceptional circumstances created by the COVID-19 pandemic

Providing financial support to Indigenous businesses through First Nations organisations that are going to be delivered as part of the relief measures package due to the exceptional circumstances created by the COVID-19 pandemic		 100% of eligible costs up to $325 million
Business development and advocacy activities, including advocacy activities to educate and inform employers about the advantages of hiring Indigenous peoples and activities to support partnerships with various stakeholders to increase the capacity of employers to recruit, promote and retain Indigenous employees 100% of eligible costs up to $50 million

9. Basis on which payments will be made

Funding allocations under LEDSP will be paid in accordance with the formula described under the heading Method for determining the amount of funding.

For targeted funding, payments will be made based on the achievement of pre-determined performance expectations or milestones or documented claims for reasonable eligible costs incurred for eligible expenditures, to be submitted by the recipient not more frequently than monthly.

Where it is essential to the achievement of the program objectives and specifically provided for in the funding arrangement, advance payments may be made in accordance with the cash management provisions of the Directive on Transfer Payments.

To simplify the administration of contributions, individual payments may be made that represent a higher percentage sharing ratio than that authorized provided that the total overall sharing ratio calculated on the total eligible costs for the project does not exceed the maximum sharing ratios. Payments made in a fiscal year shall not exceed a recipient's estimated cash flow requirements with respect to the department's share of eligible expenditures for that fiscal year. However, a payment may be made in a fiscal year to cover the federal government's share of expected eligible expenditures to be incurred by the recipient during April of the following fiscal year when the department deems it essential to meet the objectives of the funding agreement.

For targeted funding contributions to First Nations recipients, recipients are advised in the funding arrangement that ISC may withhold funding otherwise payable for non receipt of annual audited financial statements, final accounting and other reports. A holdback of a portion of any payment will be realized when deemed appropriate based on the risk of non-performance or overpayment.

10. Application requirements and assessment criteria

10.1 Application requirements

Applications by eligible recipients of LEDSP funding allocations are not required. Eligible recipients seeking to increase their level of responsibility for land management under the Indian Act or the First Nations Land Management Act will complete a readiness assessment which will be assessed by the department.

Information that will be assessed includes, but not limited to:

  • the level and type of land management activities currently undertaken within the community
  • land and environmental management experience
  • economic development potential and capacity

Allocations are provided to First Nations participating in this program on an annual basis and commensurate with the level of responsibility for land management assumed under the Indian Act.

Targeted funding: Recipients will be required to submit sufficient information to determine that they are eligible recipients as well as any information required to assess the recipient or the project against the program assessment criteria. Required information may include, as appropriate:

  • full name, address, phone number and description of the applicant
  • information on the applicant's financial situation
  • description of the management and organization capacity of the applicant
  • detailed description of the proposed project and description of activities to be undertaken
  • relevant documentation related to any partnership arrangements and commitments
  • timelines for the project
  • cost forecast of the project and details of financing, including all sources of funding for the project
  • anticipated economic benefits of the project, including expected outcomes and proposed performance measures
  • any other information considered necessary by the department

In some cases, additional information may be required, such as:

  • strategic or business plan that addresses use of funds, identification and justification of costs, management capacity, business organization, worker capacity, suppliers, provision for unexpected contingencies, products and services, marketing and sales plans, expected revenues, expenses and profit and project design
  • documentation indicating approval of the proposed project by the Indigenous community or by the board of the directors of the First Nations business or First Nations organization
  • other corporate documents, such as articles of incorporation, by-laws and corporate policies and procedures manuals
  • documents supporting the interest in, or need or support for the project by First Nations individuals, communities, businesses or organizations
  • documents supporting the need for the contribution to ensure that the project is realized
  • documentation related to the business's or project's financing gap
  • documentation related to the applicant's legal structure, ownership and control
  • demonstration of compliance with laws and regulations
  • environmental effects and proposed mitigation measures
  • land tenure requirements
  • for non-Indigenous applicants, explanation of experience in dealing with Indigenous clients

Application requirements will be communicated to applicants by ISC.

10.2 Assessment criteria:

Types and levels of assistance will be commensurate with the assessment of the risk involved, the resources of the recipient and the benefits to the First Nations community or business. Assistance will generally be determined on the basis that the amount and level are the minimum required to ensure that the project proceeds and is keeping with the forecasted benefits to the First Nations community or business.

Requests for assistance will also be assessed on the basis of their relevance to the program objectives. Assistance will be provided only to those initiatives that would not otherwise proceed in the proposed location, proposed scope or proposed time without such assistance.

For targeted funding, the following assessment criteria will be used as appropriate and relevant to determine the need, the amount and level, and the type of assistance to be offered:

  • potential for the project or activity to generate net economic benefit to Indigenous peoples in Canada
  • economic viability or sustainability of the recipient or the project or activity
  • demonstrated management capacity and business expertise of the eligible recipient in relation to the project
  • ability of the recipient to obtain financing for the project
  • amount of any federal, provincial or municipal assistance or tax credit that is likely to be relevant to the project
  • resources of the recipient that could reasonably be expected to be contributed to the project
  • recipient has demonstrated that the assistance is necessary to ensure that the project or activity proceeds with the desired scope and timing in the desired location
  • impact of the proposed project on the environment
  • relationship of the project to federal government national and regional economic strategies and priorities
  • any other criteria that the department may deem appropriate

11. Due diligence and reporting

The recipient will be requested to submit data, schedules, plans and reports in sufficient detail to enable the department to:

A monitoring plan will be developed for each project funded under this authority. The purpose of the monitoring plan will be to provide periodic information regarding the progress of the initiative against the milestones proposed in the application and to identify unanticipated risks or impediments to achieving intended results. The proposed level of monitoring will correspond to the level of risk associated with the project.

Reporting requirements will be determined by the department for each project or initiative. Progress and financial reports will be required at a minimum on an annual basis by recipients. Recipients will also be required to submit a final report at the conclusion of a project, in accordance with the terms of the funding arrangements, for review and acceptance by the department.

12. Official languages

Where a program supports activities that may be delivered to members of either official language community, access to services from the recipient will be provided in both official languages where there is significant demand and part IV of the Official Languages Act is applicable. In addition, the department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in part VII of the Official Languages Act.

13. Intellectual property

Where a contribution is provided for the development of material in which copyright subsists, conditions for shared rights will be set out in the funding agreement.

14. Repayable contributions

Where a commercial entity is the recipient of a contribution under this program and where generation of profits is expect or likely to occur, the contribution will be partially or fully repaid, depending on the outcome of the project.

Contributions may be conditionally or unconditionally repayable and contribution agreements will contain the factors that determine whether and how the repayment is to be made and the amount of the repayment, the terms of repayment and a description of the process to be used to monitor funding agreements and establish when repayments are due.

Contributions to commercial entities will normally be conditionally repayable. Repayment is provisional upon specific conditions occurring or being met. The amount to be repaid is to be commensurate with benefits which accrue to the recipient from the project. Specifically, the amount to be repaid will be based on success factors such as the achievement of sales forecasts, the expected return on investment, the recipient's financial position and ability to repay. Where due diligence indicates that the commercial entity's ability to repay the contribution is not dependent on the achievement of the success factors of the project, the contribution will be unconditionally repayable. Unconditionally repayable contributions are those which must be repaid, in part or in full, irrespective of the benefits resulting from the project.

The establishment of a repayment period will be based on such factors as the useful life of the funded assets, the duration of the project, the period during which the recipient will realize the benefits of the project and the recipient's financial position and ability to repay. The terms of repayment are to be based on a fixed time schedule with due consideration to any seasonal nature of a recipient's operation with provisions for full repayment by a specified due date, not to exceed a period of 10 years from the project's completion date.

Recipients may be exempt from the requirement to repay a contribution when 1 or more of the following apply:

The department's corporate finance systems will be used to assist in with the verification of invoice dates, appropriate follow-up on overdue accounts, viability reviews, collections or rescheduling decisions and the handling of defaulted accounts.

To address the exceptional economic disruption caused by the COVID-19 pandemic, Indigenous Services Canada will allow the National Indigenous Association and Indigenous-led financial institutions to provide repayable contributions to Indigenous businesses. These contributions will be repayable to the Consolidated Revenue Fund (CRF) based on defined conditions and requirements to be outlined in the recipient agreement and duly agreed by all signatory parties.

15. Redistribution of contributions

Where a recipient delegates authority or further distributes contribution funding to an agency or a third party, such as an authority, board, committee or other entity authorized to act on behalf of the recipient, the recipient shall remain liable to the department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

For the purposes of receiving funding under the LEDSP funding allocation, the Inuit Art Foundation can neither transfer nor delegate funds to other agents.

16. Other terms and conditions

Program guidelines: Each program holds a corresponding set of program guidelines which include specific criteria supporting these terms and conditions. Recipients must act in compliance with the provisions outlined in these terms and conditions and the program guidelines.

Up-Front Multi-Year Funding: Where contributions are used to establish or expand private equity instruments that foster early and late stages of project development and help facilitate increased First Nations participation in major resource development and energy projects or contributions to support loan-loss mechanisms aimed at attracting more private sector financing for First Nations businesses, an advance for the entire amount of the contribution, up to $10 million in year 1 of a multi-year agreement, where it is essential to the on-going success of the project, may be provided. Recipients of these contributions may carry forward any unused portion of the contribution into subsequent fiscal years.

Conflict of Interest: The Land Advisory Boards First Nations Land Management Resource Centre Inc. will be required to maintain and enforce their conflict of interest policy so that no member of its board may benefit directly or indirectly from the operations of the resource centre, other than for the remuneration as a director.

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