Business Start Program (BSP)

Eligibility Criteria

Eligibility Criteria

A. Applicants:

1. Must be Manitoba residents, aged 18 or over, and eligible to work in Canada.
2. Must develop a sound business plan.
3. Must complete a three-day Business Planning Workshop before loan funds will be released.
4. Must contribute equity equal to 40% of the loan amount requested. The equity contribution can be cash or assets for use in the business that have been purchased in the last six months.
5. Must not have owned a similar business in the past 12 months.
6. Must be approved by a participating financial institution after applicant credit rating and debt capacity are considered.

B. New Business:

1. Must be operated in Manitoba.
2. Must be created to make a profit.
3. Must not be operations in any of these categories: financial services, insurance, real estate services, professional and primary production (oil and gas, pulp production, mining or farming).
4. Must be starting up and have been operating less than six months before the date of application. A part-time business expanding to full-time is also eligible provided net income from part-time business expanding to full-time is also eligible provided net income from part-time operations was less than $15,000 in the last 12 months.
5. Must employ the applicant for a minimum of 20 hours per week on average.
6. Must meet the program's small business definition of less than 20 employees and less than $2 million per year in gross sales (both criteria have to be met in year one).
7. Must be a business that is substantially different from other businesses carried on in Manitoba in the same market area by an associate (spouse, common-law partner, parent or child) of the applicant.

Note:   If you buy an existing business it is NOT considered a new business.  You must be starting your business from scratch.

Summary

Educational Component:

A three-day Business Planning Workshop is free.  It is designed for those who are considering starting a new business in Manitoba.  Topics covered include business plans, financing options, forms of business organizations, financial statements, PST, GST and employee deductions, product definition and marketing strategy.  To register for this workshop, please call 204-984-0037 in Winnipeg or toll-free 1-800-665-2019.

Application Process:

1. Business Start Loans are administered by participating financial institutions.  Participating financial institutions are banks and credit unions in Manitoba.
2. Lenders at participating institutions will receive and evaluate your application for a Business Start Loan.  An administrative fee of $150 will be charged to successful applicants only.
3. The Business Start Loan application is available by calling 204-984-0037 in Winnipeg or toll-free 1-800-665-2019.
4. A formal business plan must be submitted with your Business Start Loan application.
5. A workshop certificate is issued to all participants completing the three-day Business Planning Workshop.  This certificate must be submitted with your Business Start Loan application.

 Participating Financial Institutions (as at August 31, 2006):

• Canadian Imperial Bank of Commerce
• Royal Bank
• Scotiabank
• TD Canada Trust
• Agassiz Credit Union
• Assiniboine Credit Union
• Community Credit Union
• Civic Credit Union
• Crosstown Credit Union
• Dauphin Plains Credit Union
• Eriksdale Credit Union
• Hartney Credit Union
• La Salle Credit Union
• Niverville Credit Union
• Portage Credit Union
• Riverton Credit Union
• Ste. Rose Credit Union
• Strathclair Credit Union
• Swan Valley Credit Union
• Transcona Credit Union
• Turtle Mountain Credit Union
• Vanguard Credit Union
• Vantis Credit Union
• Westoba Credit Union
• Caisse populaire de Saint-Boniface
• Caisse populaire d'Elie
• Caisse populaire LaVérendrye
• Caisse populaire Provencher
• Caisse populaire de Saint-Claude

Manitoba Contact(s):
Margaret Kelly
Program Coordinator
Business Start Program
Competitiveness, Training and Trade
c/o Canada/Manitoba Business Service Centre
P.O. Box 2609, Room 250 - 240 Graham Ave
Winnipeg, Manitoba  R3C 4B3
Canada
Telephone: 204-945-7721
Fax: 204-983-3852
Toll-free (information): 1-800-665-2019
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: kelly.margaret@cbsc.ic.gc.ca