First Peoples Economic Growth Fund — Entrepreneur Loan Program
Highlights
This program is designed specifically for Manitoba First Nation entrepreneurs like you. It offers interest-free loans up to $200,000 to help you start, purchase, or expand your business. This financing can be a game-changer, allowing you to leverage additional funds from other institutions and agencies.
Key Benefits:
- Interest-Free Loans: Save on interest costs, making your repayments more manageable.
- Flexible Use: Funds can be used for starting a new business, purchasing an existing one, or upgrading your current operations.
- Long Repayment Terms: Up to 10 years for most loans, and up to 20 years for building-related projects.
By securing this loan, you can enhance your business's financial stability and growth potential. The application process is straightforward, and as long as you meet the criteria, qualifying is not difficult. This program provides a unique opportunity to access substantial funding without the burden of interest, setting you up for long-term success.
Financing Details
Type of Financing: Subordinated Interest-Free Loan
Loan Terms and Conditions:
- Loan Amount: Up to $200,000 per project or 50% of the fair market value of total project costs, whichever is less.
- Repayment Term: Up to 10 years for most projects; up to 20 years for buildings.
- Security: Business assets will be registered as collateral, subordinate to other debt financing.
Eligible Expenses:
- Starting a new business
- Purchasing an existing business
- Upgrading or expanding an existing business
Ineligible Expenses:
- Refinancing existing debt
Fees:
- No specific fees mentioned for this program
Qualifications
- Must be a member of a Manitoba First Nation, living on or off reserve in Manitoba.
- Must be aged 18 and over, and eligible to work in Canada.
- Must provide a sound business plan that demonstrates viability of the business.
- Must contribute equity equal to a minimum of 5% of the total project costs.
- Business must have a profit objective.
- Business must primarily operate in Manitoba.
- Business must be reputable and appropriate in nature.
Business must be at least 51% owned and controlled by a member of a Manitoba First Nation.
Disqualifications:
- Applicants who have owned a similar business in the past 12 months.
- Businesses that are not-for-profit.
- Businesses seeking loans for refinancing purposes.
Description
This program aims to help Manitoba First Nation entrepreneurs by providing interest-free loans. You can receive up to $200,000 or 50% of your total project costs, whichever is less. This money can be used to start a new business, buy an existing one, or expand your current business.
The loan is interest-free and you have up to 10 years to repay it. If you're using the loan for buildings, you can take up to 20 years. Your business assets will be used as collateral, but this loan is meant to supplement other financing you may have.
This is a great opportunity to get the capital you need without the burden of interest. You can use the funds for various business needs like startup costs, working capital, or business upgrades. However, you can't use it to refinance existing debt. This program is designed to make it easier for you to secure additional financing from other sources.
Program Steps
Download the Application Form: Obtain the Entrepreneur Loan Application in either PDF or Word format from the provided links.
Prepare Business Documentation: Gather the following documents:
- A sound business plan demonstrating the viability of your business.
- Financial statements (quality prepared, internally prepared, auditor prepared notice to reader statement, auditor prepared review engagement statements, or audited financial statements).
- Purchase invoices or other documentation supporting the fair market value of unencumbered business assets.
- Proof of equity contribution (cash or unencumbered business assets).
Complete the Application Form: Fill out the Entrepreneur Loan Application form with accurate and detailed information about your business and the intended use of the loan.
Review Loan Terms and Conditions: Understand the loan terms, including the maximum loan amount, repayment period, and the requirement for business assets to be registered as security or collateral.
Submit the Application: Submit the completed application form along with all required documentation to the First Peoples Economic Growth Fund (FPEGF).
Await Application Review: The FPEGF will review your application to ensure it meets all criteria and that your business aligns with the program's objectives. This process may include discussions or requests for additional information.
Approval and Loan Disbursement: Upon approval, discuss the final loan terms, including the repayment schedule and any conditions. Once everything is agreed upon, the loan funds will be disbursed, allowing you to proceed with your business project.