First Peoples Economic Growth Fund – Community Economic Expansion Program
Highlights
This program is designed specifically for Manitoba First Nation community-owned businesses like yours. It offers interest-free loans up to $300,000, which can be used for starting, purchasing, or expanding your business. This means you can grow your business without the burden of interest payments, making it easier to manage your finances.
Key Benefits:
- Interest-Free Loans: No interest charges, making repayments more manageable.
- Loan Forgiveness: Up to $75,000 or 25% of the loan may be forgiven if all conditions are met.
- Flexible Use: Funds can be used for startup costs, working capital, or business expansion.
Why Apply?
- Long Repayment Terms: Up to 10 years for most loans, and up to 20 years for buildings.
- Support for Growth: Helps you create wealth and jobs within your community.
- Easy Qualification: If your business is viable and meets the criteria, you have a strong chance of approval.
Applying for this program can provide the financial support you need to take your business to the next level, all while contributing to the economic growth of your community.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Loans are repayable over a term not to exceed 10 years. For buildings, the term can extend up to 20 years.
- The loans are interest-free.
- Repayment of the principal begins within one year from the disbursement of loan funds. Payments will be made in equal monthly amounts over the remaining loan term.
Eligible Expenses:
- Starting a new business
- Purchasing an existing business
- Upgrading or expanding an existing business
Ineligible Uses of Funds:
- Refinancing existing debt
- Proceeds cannot be used to repay existing debt
Fees:
- No specific fees are mentioned for this program.
Qualifications
- Must be a small or medium-sized business.
- Business must be owned by a Manitoba First Nation.
- Business must be at least 51% owned and controlled by Manitoba First Nations.
- Must provide a sound business plan that demonstrates viability.
- Must contribute cash equity or equivalent to a minimum of 10% of the total project costs.
- Business must primarily operate in Manitoba.
- Business must have a profit objective.
Business must be reputable and appropriate in nature.
Disqualifications:
- Not-for-profit projects will not be considered.
- Loans cannot be used for refinancing purposes or to repay existing debt.
Description
This program offers your business a chance to grow with a loan of up to $300,000. You can use this money to start a new business, buy an existing one, or expand your current operations. The loan covers up to 50% of your total project costs, including startup expenses and working capital.
Key benefits include:
- Interest-free loans: You won't pay any interest on the borrowed amount.
- Flexible repayment terms: You have up to 10 years to repay the loan (up to 20 years for buildings).
- Loan forgiveness: If your business is still running and all payments are made on time, up to $75,000 or 25% of the loan (whichever is less) may be forgiven.
The loan requires you to start repaying the principal within one year, with equal monthly payments. Your business assets will serve as collateral. This program is a great opportunity to secure funding without the burden of interest, helping you focus on growing your business and creating jobs in your community.
Program Steps
Download the Application Form: Obtain the Community Economic Expansion Loan Application in either PDF or Word format from the program's website.
Prepare Business Documentation: Gather the following documents:
- A sound business plan demonstrating the viability of your business.
- Financial statements.
- Purchase invoices or other documentation supporting the fair market value of business assets.
- Evidence of cash equity or equivalent contribution (minimum 10% of total project costs).
Review Loan Terms and Conditions: Understand the loan terms, including the repayment period (up to 10 years for general loans, up to 20 years for buildings), interest-free nature, and the requirement for equal monthly repayments starting within one year.
Complete the Application Form: Fill out the Community Economic Expansion Loan Application with accurate and detailed information about your business and the project for which you are seeking funding.
Submit the Application: Submit the completed application form along with all required documentation to the appropriate office or email address provided by the program.
Await Appraisal: Be prepared for an appraisal of the project costs, if required, to ensure the fair market value of the total project costs.
Respond to Follow-Up Requests: If the program administrators need additional information or documentation, respond promptly to ensure the timely processing of your application.
Review Approval and Loan Terms: Upon approval, review the final loan terms, including the repayment schedule and any conditions attached to the loan.
Sign Loan Agreement: Sign the loan agreement to formalize the terms and conditions of the loan.
Receive Loan Funds: Once the agreement is signed, the loan funds will be disbursed, allowing you to proceed with your business startup, expansion, or acquisition project.