strain on the community, but money to
drain out of it. In collaboration with Lo-
blaws and Pharmasave, two large Ca-
nadian corporations with over 2,500
locations, Elsipogtog was able to pro-
duce a business plan, which, though
feasible, was rejected by banks.
Usand partnered with Elsipogtog to
help bring the project to life. Usand’s
solution of a bridge loan provided
the funds to get the project started
and filled in the gap between when
the bank agreed to provide financ-
ing and when the community actually
received the money. The bridge loan
was then paid out by the Chartered
bank once the market was built and
the construction risks were settled,
replacing the bridge debt with a lower
interest rate and long-term structure.
The result was Canada’s first Pharma-
save owned and operated by a First
Nation, which lead to increased job
creation and profits remaining in the
community. The success of this proj-
ect also mean that Elsipogtog could
immediately leapfrog into a new hous-
ing project for their community, and
further economic development.
76 business elite canada
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APRIL 2018
