CDEM — Financing
Highlights
This program is designed for you. It offers access to capital for starting, expanding, or diversifying your business. With our support, you can develop a professional business plan that meets financial institutions' requirements, ensuring you get the best financing conditions possible.
Key Benefits:
- Access to an investment fund specifically for Manitoba businesses owned by Francophones.
- Expert advice on diversifying and leveraging funding sources.
- Support in creating a business plan that demonstrates commercial viability and repayment ability.
By applying, you can secure the necessary funds to grow your business, backed by a program that understands your unique needs. The eligibility criteria are straightforward, making it easier for you to qualify and benefit from this opportunity.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- The loan must be repaid within a term of up to 10 years.
- Interest rates are competitive and fixed at 5% per annum.
- Monthly repayments are required, consisting of both principal and interest.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital for business operations.
- Research and development costs.
- Marketing and advertising expenses.
Ineligible Expenses:
- Personal expenses.
- Real estate purchases.
- Repayment of existing debts.
- Any expenses not directly related to the business.
Fees:
- Application fee of $200.
- No additional fees for early repayment.
- A one-time administration fee of 1% of the loan amount, which can be included in the loan.
Qualifications
- Must belong to one or several Francophones who own at least a 50% interest in the business.
- Must operate or be about to operate in Manitoba.
- Any loan request must be accompanied by an appropriate and reasonable business plan which shows the real potential for commercial viability, as well as the business’s ability to repay.
- Applicants must prove that they have explored all other reasonable methods to obtain financial support and that they were unable to obtain this support.
Description
This program offers your business a chance to borrow up to $1,000,000. You can use up to $500,000 of this amount to buy equipment or improve your rented space.
Examples of what you can purchase include:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For other costs like software or working capital, the program can provide up to $150,000.
The federal government guarantees 85% of the loan, which gives you added security.
This loan program is flexible. If you have made qualifying purchases in the last 365 days, you can include them in this loan.
You have various options to repay the loan. You can choose a variable interest rate, a fixed one, or a combination of both.
You have up to 15 years to repay the loan, regardless of what you spend it on.
Program Steps
Gather Required Documentation: Prepare the necessary documents for your application. These include:
- Business Plan
- Financial Statements
- Proof of Ownership (showing at least 50% Francophone ownership)
- Evidence of exploring other financial support options
Complete the Application Form: Fill out the application form provided by CDEM. Ensure all sections are completed accurately.
Submit Business Plan: Attach your business plan to the application. This plan should demonstrate commercial viability and the ability to repay the loan.
Provide Financial Statements: Include recent financial statements with your application. These should detail your business’s financial health.
Proof of Ownership: Submit documentation proving that Francophones own at least 50% of the business.
Evidence of Financial Support Attempts: Provide proof that you have explored other financial support options and were unable to obtain them.
Submit Application: Send your completed application form and all required documents to CDEM.
Review Process: CDEM will review your application and may request additional information if needed.
Approval and Funding: Once approved, discuss the final terms and conditions. Upon agreement, the funds will be disbursed to your business.