LRCC — Business Grant & Loan Program
Highlights
This program is designed specifically for Métis-owned small businesses in Manitoba. It offers a unique combination of grants and loans to help you start, acquire, or expand your business. With up to $99,999 in grant funding and $250,000 in commercial loan funding, you can secure the financial support you need to grow your business.
Why apply?
- Non-repayable grants for eligible costs such as equipment, machinery, and marketing.
- Flexible loan options that can cover a wide range of business needs.
- Bridge financing available to help manage cash flow while waiting for other funding.
What's in it for you?
- Capital costs like equipment and commercial vehicles.
- Operating costs for the first three months, including rent and utilities.
- Marketing costs to boost your business presence.
Qualifying for this program is straightforward if you meet the basic requirements. Approval can significantly enhance your business's financial stability and growth potential. Reach out to LRCC staff to discuss your project and start the application process.
Financing Details
Type of Financing:
- Grant: Up to $99,999.00 in non-repayable funding.
- Loan: Up to $250,000.00 in commercial loan funding. Some projects may qualify for a higher loan amount on an exception basis.
Repayment Terms and Interest Rates:
- Loan Repayment: Specific terms and interest rates will be determined based on the project and applicant's financial situation. Please consult with LRCC staff for detailed information.
Eligible Expenses:
- Capital Costs: Equipment, machinery, leasehold improvements, commercial vehicles, and supplies.
- Operating Costs (Start-Up Only): Rent, utilities, and insurance for the first 3 months of operations.
- Marketing Costs: Website development, advertising, signage, and decaling.
- Business Support Costs: Legal, accounting, and bookkeeping services during start-up.
Ineligible Expenses:
- Excluded Businesses: Bars, gambling establishments, sexually exploitive businesses, pawnshops, payday loan providers, tobacco retailers or manufacturers.
- Passive Investments: Real estate, apartment buildings, or businesses managed by someone other than the owner.
- Personal Use Assets: Items such as cars or pick-up trucks are not eligible for grant funding but may be eligible for loan financing.
- Pre-Incurred Costs: Any costs incurred before contacting LRCC staff are not eligible for grant funding.
Fees:
- There are no specific fees mentioned for the application process. However, it is advisable to contact LRCC staff for any potential fees that may apply.
Qualifications
- Must be a Métis-owned small business.
- Business must be registered in Manitoba.
- Ownership must be at least 51% Métis owned with valid MMF Citizenship Card(s).
- Métis owner(s) must reside in Manitoba.
- At least one principal Métis-owner must be actively involved in the business on a day-to-day basis.
- Owners must be able to make a cash investment of no less than 10% of the total project costs.
Projects must generally be above $25,000.00 unless the applicant is an existing business looking to expand.
Disqualifications:
- Businesses such as bars (alcohol provider), gambling (VLTs), sexually exploitive in nature, pawnshops, payday loans, tobacco retailer or manufacturer.
- Passive investments such as real estate, apartment buildings or complexes, or a business managed by someone else for the owner.
- Costs already incurred by the owners.
- Certain costs such as assets perceived to be for personal use (e.g., a car or pick-up truck) for grant funding.
Description
The program offers up to $99,999 in grant funding and up to $250,000 in commercial loan funding to help start, acquire, or expand your Métis-owned small business in Manitoba. Some projects may qualify for a higher loan amount on an exception basis.
Grant funding can be used for various costs such as:
- Capital costs: Equipment, machinery, leasehold improvements, commercial vehicles, and supplies.
- Operating costs (start-up only): Rent, utilities, and insurance for the first three months.
- Marketing costs: Website, advertising, signage, and decaling.
- Business support costs: Legal, accounting, and bookkeeping during start-up.
Loan funding can cover additional expenses, including those not eligible for grants, like land and building costs in areas where leased property is unavailable.
You need to make a cash investment of at least 10% of the total project costs. For example, a $100,000 project would require $10,000 in non-borrowed cash. This program is designed to support sound projects with reasonable risk factors, ensuring your business has a strong foundation for success.
Program Steps
Prepare Required Documentation: Gather the necessary documents to support your application. You will need:
- Business Grant & Loan Application
- Personal Statement of Affairs (each owner must fill out a separate form)
- Business Grant & Loan Info Sheet
- Business Plan Checklist
- Detailed Business Plan
- Proof of MMF Citizenship Card(s)
- Proof of Manitoba business registration
- Financial statements and projections
- Quotes for equipment, machinery, leasehold improvements, commercial vehicles, supplies, and other eligible costs
Develop a Business Plan: Create a comprehensive business plan that outlines your business goals, strategies, market analysis, and financial projections. This plan should demonstrate the soundness and potential success of your project.
Calculate Project Costs: Determine the total project costs, including capital, operating, marketing, and business support costs. Ensure you have at least 10% of the total project costs in non-borrowed cash.
Contact LRCC Staff: Reach out to LRCC staff to discuss your project and get guidance on the application process. They can provide insights on the potential grant amount and clarify any questions you may have.
Complete and Submit Application: Fill out the Business Grant & Loan Application and Personal Statement of Affairs forms. Attach all required documentation and submit your application to LRCC.
Await Application Review: Allow 6-8 weeks for LRCC to process your application. Be prepared to provide additional information or documentation if requested.
Receive Approval and Funding: Once approved, discuss the final terms of the grant and loan with LRCC. Upon agreement, the funds will be disbursed to support your business project.