First Peoples Economic Growth Fund – Business Contribution Fund
Highlights
This program is designed specifically for your business. It offers non-repayable contributions to help you start, expand, or acquire a viable business. You can receive up to 40% of eligible costs for individual-owned businesses, with a maximum of $99,999. For businesses owned by Manitoba First Nations, the contribution can be up to 30% of eligible costs, with a maximum of $250,000.
Key Benefits:
- Non-repayable contributions mean you don't have to pay back the funds.
- Up to 75% coverage for business valuations, business plans, and environmental assessments.
- 60% coverage for marketing costs and 75% coverage for business support, including training and aftercare management.
This program is easier to qualify for than many others, requiring a minimum of 10% cash equity and a 40% commercial loan. Approval will provide you with the financial support needed to grow your business without the burden of repayment, allowing you to focus on achieving long-term success.
Financing Details
Type of Financing: Non-Repayable Contribution
Contribution Details:
- For businesses owned by a First Nation individual: Up to 40% of eligible costs, with a maximum of $99,999.
- For businesses owned by a Manitoba First Nation or group of Manitoba First Nations: Up to 30% of eligible costs, with a maximum of $250,000.
- Contributions can be made towards start-up, expansion, or acquisition of a viable business.
- For business acquisitions, up to 75% of the Business Valuation cost can be covered.
Eligible Expenses:
- Capital and operating costs.
- Development of an independent business plan (up to 75%).
- Environmental assessments (up to 75%).
- Marketing costs (up to 60%).
- Business support (training, aftercare management) (up to 75%).
Ineligible Expenses:
- Bars, gambling (VLTs), sexually exploitive businesses, pawn shops, payday loans, tobacco shops.
- Passive investments (real estate, apartment blocks, businesses managed by others).
- Assets perceived for personal use (e.g., cars, residential houses).
- Businesses that significantly harm another business in the same area.
Fees:
- No fees associated with the program.
Qualifications
- Must be a First Nation business in Manitoba.
- Must be at least 51% owned by a First Nation individual, Manitoba First Nation Community, or group of Manitoba First Nations.
- If a partnership, the business must be at least 51% First Nation owned, and the contribution will be in proportion to the First Nation's ownership.
- The First Nation owner or partner must be an integral part of the business.
- Must have a minimum of 10% cash equity to put into the business.
- Must have a minimum of a 40% commercial loan as part of the total financing.
- Must show viability and management capacity through the submission of a business plan.
For business acquisitions, must provide three years of historical financial statements and an independent Business Valuation by a Certified Business Valuator.
Disqualifications:
- Bars.
- Gambling establishments (VLTs).
- Sexually exploitive businesses.
- Pawn shops.
- Payday loan businesses.
- Tobacco shops.
- Passive investments (e.g., real estate, apartment blocks, businesses managed by someone else).
- Assets perceived to be for personal use (e.g., cars, residential houses).
- Businesses that will significantly harm another business (e.g., a second laundromat in a small town that cannot support two).
Description
The Business Contribution Fund (BCF) offers non-repayable contributions to help your business grow. If your business is owned by a First Nation individual, you can receive up to 40% of eligible costs, with a maximum of $99,999. If your business is owned by a Manitoba First Nation or a group of Manitoba First Nations, you can receive up to 30% of eligible costs, with a maximum of $250,000.
You can use this funding for starting, expanding, or acquiring a viable business. For acquisitions, you will need three years of financial statements and an independent business valuation. The BCF can cover up to 75% of the valuation cost.
The fund also supports other business needs:
- 75% of the cost for developing a business plan
- 75% of the cost for environmental assessments
- 60% of marketing costs
- 75% of business support (training, aftercare management)
There are some restrictions. The fund does not support businesses like bars, gambling, sexually exploitive ventures, pawn shops, payday loans, tobacco shops, or passive investments. It also won't cover assets for personal use or businesses that harm existing ones.
During a three-year control period, you must submit financial statements and a Business Performance Review. If your business changes significantly or ceases operation, the contribution may become repayable.
This program is a great opportunity to get significant financial support without the burden of repayment, helping you focus on growing your business.
Program Steps
Download the Application Form: Obtain the Business Contribution Fund application form from the First Peoples Economic Growth Fund website.
Prepare Required Documentation: Gather the necessary documents to support your application. These include:
- Business Plan
- Financial Statements (if applicable, three years of historical financial statements for business acquisition)
- Independent Business Valuation (for business acquisition)
- Proof of 10% cash equity
- Proof of 40% commercial loan
- Ownership documentation showing at least 51% First Nation ownership
Complete the Application Form: Fill out the application form with accurate and detailed information about your business, including ownership details, financial projections, and the purpose of the funding.
Attach Supporting Documents: Ensure all required documents are attached to your application. This includes the business plan, financial statements, business valuation, proof of equity, and loan documentation.
Submit the Application: Send the completed application form and all supporting documents to the First Peoples Economic Growth Fund. You can submit it via email to [email protected] or mail it to their office.
Follow Up: After submission, follow up with the First Peoples Economic Growth Fund to confirm receipt of your application and inquire about the next steps in the review process.
Prepare for Review: Be ready to provide additional information or clarification if requested by the fund during their review of your application.
Await Decision: Wait for the decision on your application. If approved, review the terms of the contribution and any conditions attached.
Implement Funded Activities: Once the contribution is received, proceed with the planned business activities as outlined in your application, ensuring compliance with the terms and conditions of the fund.
Submit Ongoing Reports: During the control period, prepare and submit financial statements and a "Business Performance Review" as required to demonstrate the ongoing viability and compliance of your business.