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This Program is intended to assist Manitoba First Nation community-owned businesses for startup, expansions or acquisitions. The intent is that these viable businesses will provide for the creation of wealth and jobs for First Nations.
Nature of Funding
Small and medium sized viable businesses owned by a Manitoba First Nation may be eligible. The maximum loan amount is $300,000 or 50% of the fair market value of the total project costs (including identified startup costs and working capital). Appraisal of the project costs may be required. At the end of the loan, if the business is still in operation, has not been sold and all loan payments have been made consistently, up to $75,000 or 25% of the total loan (whichever is less) may be forgiven.
Loan Terms and Conditions
- Loans are repayable over a term not to exceed 10 years (buildings not to exceed 20 years).
- Loans are interest-free. Repayment of principal, beginning within one year from disbursement of loan funds, will be required in equal monthly amounts over the remaining loan term.
- Business assets will be registered as security or collateral for the loan subordinate to other debt financing obtained to support business activities.
- Loan proceeds can be used for the following purposes: starting a new business, purchasing an existing business, or upgrading or expanding an existing business.
- Loans are not provided for refinancing purposes. Proceeds cannot be obtained to repay existing debt.
Eligibility Criteria
Applicants must:
- Provide a sound business plan that demonstrates viability of the business.
- Contribute cash equity or equivalent to a minimum of 10% of the total project costs. Business projects deemed by the Fund to be higher risk will require a greater level of equity contribution. The applicant's equity contribution can be cash or unencumbered business assets supported by purchase invoices or other appropriate documentation supporting the fair market value of the business assets.
Businesses funded under this program must:
- Have a profit objective (not-for-profit projects will not be considered).
- Demonstrate viability through a sound business plan.
- Primarily operate in Manitoba.
- Be reputable and appropriate in nature.
- Be at least 51% owned and controlled by Manitoba First Nations.
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