 |
|
This 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.
Loan Terms and Conditions
- 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.
- Loans are repayable over a term normally not to exceed 10 years (buildings not to exceed 20 years).
- 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.
- Loans under this program are intended to supplement financing from other sources.
Eligibility Criteria
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:
- Cash
- 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 a member of a Manitoba First Nation.
Supplementary Loans
The business entity is eligible for supplementary loans based on the following:
- It has been a full twelve months since the last loan granted under the First Peoples Economic Growth Fund (FPEGF).
- The total loan commitment including the new loan does not exceed $200,000.
- The business has provided FPEGF with a satisfactory yearend financial statement. Depending on the complexity of the business and its internal controls, FPEGF will have flexibility in accepting:
- Quality prepared
- Internally prepared
- Auditor prepared notice to reader statement
- Auditor prepared review engagement statements, or
- Audited financial statements.
- Financial statements should not be more than six months old.
|
|
|
