Madam Speaker, it is interesting, because earlier today at the aboriginal affairs committee we had Mr. Martell from the First Nations Bank of Canada.
Mr. Martell and I had a discussion about the fact that First Nations Bank was one of the five charter banks that received money under the pilot program from the government on this loan loss reserve pilot project that we are talking about here today.
Access to capital is one of the most persistent impediments to the growth of aboriginal businesses, especially on reserve. The banks, particularly the larger commercial banks, have been reluctant to lend to aboriginal businesses for a number of reasons, including section 89 of the Indian Act and the perceived lack of track record and higher risk.
A key partner in helping address this impediment is the network of aboriginal financial institutions which has played such an important role over the past 20 years. Yes, indeed, it has advanced more than 33,000 loans, totalling $1.4 billion to aboriginal businesses. Over this period, the federal government has invested approximately $240 million in this network to capitalize and support start-up in initial operations.
Through the financial institutions program and the access to capital program, we continue to provide approximately $10 million every year to support these institutions and their national association, The National Aboriginal Capital Corporation Association. Last year, these aboriginal financial institutions provided $88 million in loans to 1,200 aboriginal businesses.
As the member for Nanaimo—Cowichan is aware, the loan loss reserve complements our existing programs that support the network of aboriginal financial institutions that provide smaller loans to smaller businesses.
The loan loss reserve program that we are talking about here was a pilot program that was set up to attract the larger commercial banks to what we think is the enormous potential of some of the larger aboriginal economic development opportunities. We have first nations from Membertou to Osoyoos that are embarking on impressive business and community development opportunities, and they need significant capital to make these happen.
In June of last year, our government released a new federal framework for aboriginal economic development to underline our commitment to economic development. This new framework represents a fundamental change. It reflects the significant real and growing opportunities for aboriginal people to take an unprecedented step toward becoming full participants in the economy as entrepreneurs, employers and employees.
In the coming months, we will be engaging with our partners, including the network of aboriginal financial institutions and others, to ensure that all of our programs are aligned with the framework, consistent with the Government of Canada's policy on transfer payments, and they meet the needs of aboriginal businesses and communities. In fact, officials met recently with the National Aboriginal Capital Corporate Association and have begun to discuss how the government and the network can work together to best address these needs.
Time and again, our government has reaffirmed its commitment to work with aboriginal communities to make a real difference. From infrastructure to employment to health services, we are working in partnership.