This Program is intended to assist First Nation community-owned business development associations and corporations leverage capital to develop businesses that will result in the creation of wealth and jobs for First Nations.
Nature of Funding
Non-Repayable
Funding available is up to 35% of the fair market value of the assets (including identified startup costs and working capital) to a maximum of $75,000. The funding is not repayable. Should the business be sold or disposed of within three years of receiving a non-repayable contribution, it will become repayable immediately.
Repayable
In addition, the program can contribute up to the lesser of $225,000 or 35% of the fair market value of the assets (including identified startup costs and working capital) as an interest-free repayable contribution.
Note: Total Funding from this program will not exceed 50% of the fair market value of the assets (including startup costs and working capital).
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 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 – Owner-Applicant
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.
Eligibility Criteria – Business Project
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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