Entrepreneur Loan Program

By mmuise
Description:

The Entrepreneur Loan Program is intended to assist Manitoba First Nation entrepreneurs by providing capital and/or working capital through subordinated interest-free loans that will enhance the applicant's ability to leverage financing from other institutions and agencies.


Comments on Funding:

Loan terms and conditions:
1. Each loan will be for the lesser of $200,000 per project, or 50% of the fair market value of the total project costs (including identified startup costs and working capital) identified in the project costs. Appraisal of the project costs may be required.
2. Loans are repayable over a term normally not to exceed 10 years (buildings not to exceed 20 years).
3. Business assets will be registered as security or collateral for the loan subordinate to other debt financing obtained to support business activities.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be a member of a Manitoba First Nation, living on or off reserve in Manitoba;
  • be aged 18 and over, and eligible to work in Canada;
  • provide a sound business plan that demonstrates viability of the business;
  • not have owned a similar business in the past 12 months;
  • contribute equity equal to a minimum of 5% of the total project costs. Business projects deemed by the Fund to be higher risk will require larger equity contributions. The applicant's equity contribution can be:
    a) cash;
    b) unencumbered business assets supported by purchase invoices or other appropriate documentation supporting the fair market value of the business assets.
  • have businesses that:
    a) have a profit objective (not-for-profit projects will not be considered);
    b) demonstrate viability through a sound business plan;
    c) primarily operate in Manitoba;
    d) must be reputable and appropriate in nature;
    e) must be at least 51% owned and controlled by a member of a Manitoba First Nation.
Application Steps:

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Documentation Needed:

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Other Things to Note:

1. Loan proceeds can be used for the following purposes: starting a new business, purchasing an existing business, or upgrading or expanding an existing business.
2. Loans under this program are intended to supplement financing from other sources.

About the author
mmuise