Block invests $3 million CAD in Canada’s largest and most innovative Indigenous social impact fund
The Indigenous Growth Fund (IGF Inc.) welcomes its first private investment, marking an important public and private partnership milestone focused on restoring growth and prosperity for the Indigenous economy. The IGF, an Indigenous investment fund, is under the management of National Aboriginal Capital Corporations Association (NACCA).
As the IGF’s first private investor, Block (formerly Square, Inc.), a technology company with a focus on financial services and expanding economic access for everyone, is investing $3 million (CAD). Block’s investment, as part of its $100 million (USD) social impact investment, will make loans available to more Indigenous entrepreneurs who require capital to start or expand their businesses through a growing number of Aboriginal Financial Institutions (AFIs) across Canada.
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Creating a Sustainable Stream of Capital for Indigenous Entrepreneurs
“Our partnership with Block demonstrates how similar private and public social impact investors are. We all need to work together to contribute to economic reconciliation, and by investing into Indigenous investment vehicles, we put reconciliation to action. Private investors like Block are essential to ensuring the IGF thrives as an enduring and evergreen fund, providing an ongoing stream of capital for Aboriginal Financial Institutions to support future generations of Indigenous entrepreneurs,” explains Shannin Metatawabin, Chief Executive Officer of the National Aboriginal Capital Corporations Association. “We know this investment will spark and inspire other companies to also contribute to economic reconciliation,” says Metatawabin.
The Return to Indigenous Prosperity
“Block shares NACCA’s vision to accelerate the speed and scale of the return to Indigenous prosperity through the first-of-its-kind Indigenous Growth Fund,” explains Courtney Robinson, Global Head of Financial Inclusion, Block. “Our investment in the Indigenous Growth Fund puts our commitment to economic reconciliation into action and reflects Block’s purpose to increase access to the economy,” says Robinson.
Since opening applications for AFIs in November 2021, the IGF has committed $10 million to AFIs who are making business loans available to their clients.
“Although Indigenous businesses are currently in-demand in Canada and globally, accessing capital remains a challenge for Indigenous entrepreneurs who want to grow their businesses,” says Nicole McLaren, Founder and CEO of Raven Reads, which offers an Indigenous subscription box that features award-winning Indigenous content and literature direct to your door. “Consumers, business owners and investors all can play a role in supporting the growth of Indigenous businesses, which has a direct and positive impact on Indigenous families and communities.”
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“When our government first invested in the Indigenous Growth Fund last year, NACCA issued a call to action for partners to come to the table, expand access to capital and provide more opportunities for Indigenous entrepreneurs,” said Hon. Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development. “Today, Block has responded to that call, joining NACCA, and our government, in advancing a societal effort towards reconciliation.”
“Block’s investment in the Indigenous Growth Fund is a great step forward in ensuring Indigenous businesses can continue to contribute to their vibrant communities and local economies. By helping further unlock the creative and entrepreneurial spirit in Indigenous communities, Block is positioning itself as a new partner on the federal government’s shared path towards economic reconciliation,” said Hon. Patty Hajdu, Minister of Indigenous Services.
Self-Determination for Indigenous Entrepreneurs
“The Indigenous Growth Fund represents a transfer of good energy into economic reconciliation and economic self-determination for Indigenous entrepreneurs,” sums up Metatawabin. “Accepting our first private investment is an important milestone to allow the Indigenous Growth Fund to deliver on its vision of helping more Indigenous business owners to take their businesses to the next level of growth and prosperity,” says Metatawabin. “Block’s investment also signals that private investors are looking at the IGF as a well-structured, institutional-grade fund. One that will begin to anchor real growth for our AFI network and their clients.”
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