Entrepreneur Loan Program

Supporting First Nations Visionaries

This program is intended to assist Manitoba First Nation entrepreneurs by providing capital and/or working capital through subordinated interest-free loans that will enhance the applicant’s ability to leverage financing from other institutions and agencies.

Terms and Conditions

• Each loan will be for the lesser of $200,000 per project, or 50% of the fair market value of the total project costs (including identified startup costs and working capital) identified in the project costs. Appraisal of the project costs may be required.
• Loans are repayable over a term normally not to exceed 10 years (buildings not to exceed 20 years).

Eligibility Criteria

Applicants must:

1. Be a member of a Manitoba First Nation, living on or off reserve in Manitoba.
2. Be aged 18 and over, and eligible to work in Canada.
3. Provide a sound business plan that demonstrates viability of the business.
4. Contribute equity equal to a minimum of 5% of the total project costs. Business projects deemed by the Fund to be higher risk will require larger equity contributions. The applicant’s equity contribution can be:
   • Cash
   • Unencumbered business assets supported by purchase invoices or other appropriate documentation supporting the fair market value of the business assets.

Note: Please be aware that all applicants will undergo a credit score review. However, approval is not determined solely by your credit score, and having a low score will not prevent you from being eligible for financing. Any unresolved collection issues must be addressed before your application can proceed.

Businesses funded under this program:

• Should register their business name with the Companies Office.
• Are required to use loan proceeds in the manner they applied for (e.g., start, expand, acquire).
• Loan proceeds are not intended for refinancing purposes or to pay existing debt. Will be registered as security or collateral for the loan.
• If it is a partnership, the business must be at least 51% First Nation owned.

Supplementary Loans

The business entity is eligible for supplementary loans based on the following:

• The business has provided FPEGF with satisfactory financial statement(s) as requested. Depending on the complexity of the business and its internal controls, FPEGF will have flexibility in accepting:
  • Quality prepared
  • Internally prepared
  • Auditor prepared notice to reader statement
  • Auditor prepared review engagement statements, or
  • Audited financial statements