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Small Business Info-Guide - Financial Assistance ProgramsLast Verified:
2006-07-14
What is an Info-Guide?The Canada/Manitoba Business Service Centre created Info-Guides to help you navigate through the wide range of programs and services in a specific area as well as related regulations that may affect your business venture. Info-Guides featuring other topics of interest are also available by contacting the Canada/Manitoba Business Service Centre at 204-984-2272 (in Winnipeg) or 1-800-665-2019 (toll free in Canada) or by e-mail at manitoba@cbsc.ic.gc.ca. TABLE OF CONTENTS
General Business Financing Programs
Assiniboine Credit Union Micro Loan Fund A joint effort between Western Economic Diversification and the Assiniboine Credit Union. These loans were designed specifically for members of the Assiniboine Credit Union (for at least 6 months) living in Winnipeg who have good business ideas or wish to expand their existing business but are having difficulty obtaining financing from traditional lenders. To be elibible, interested applicants must clearly show a commitment to starting or expanding a small business. Loans of up to $35,000 will be made available for five year terms. Business Start loans, up to a maximum of $20,000, are available to new owner-managed business across Manitoba. Loans are provided through participating banks and credit unions and guaranteed by the Manitoba Government. A Business Start loan can provide funding for business registration or incorporation costs, equipment and inventory purchases, promotional costs and working capital needs. Loan terms include an attractive prime-plus-one per cent interest rate and a one-year deferral of principal repayment. An equity contribution by business owners of 40 per cent of the requested loan amount is required. The program also provides entrepreneurial training through a free three-day Business Planning Workshop, which is mandatory for all Business Start loan applicants. A comprehensive business plan must be submitted with the loan application. Assists new and existing businesses obtain term loans of up to $250,000 from chartered banks or other lenders to purchase or upgrade fixed assets. To be eligible, a company's gross revenues must not exceed $5 million annually. Successful applicants are required to pay a one-time administration fee equal to 2% of the loan. Please note that application is made at the financial institution of your choice and final approval rests solely with the bank or other lender. The Canadian Youth Business Foundation (CYBF) is a national, non-profit organization, whose mission is to inspire, support and promote young Canadian Entrepreneurs who are between 18 and 34 years of age. CYBF garners financial support from both the private and public sectors and uses these funds to administer a loan and mentorship program. Loan clients are required to work with a business mentor for the duration of their dealings with CYBF. Unsecured loans of up to $15,000 are available to eligible applicants who have submitted a Business Plan that demonstrates viability. Community volunteers are utilized to help in making the loan decision. This program was created to help small businesses access additional financing through capital leases, to finance new or used equipment for the expansion or creation of their business (up to a maximum of $250,000). It falls under the Canada Small Business Financing Act. Most small businesses starting up or operating in Canada -- excluding farming, charitable and religious enterprises -- are eligible as long as their estimated annual gross revenues do not exceed $5 million. Lessors are required to register a security interest in the leased equipment; they may also take security in other business assets. Lessors may take personal guarantees or suretyships but not exceeding, in aggregate, 25% of the total financing amount of the capital lease. These guarantees or suretyships cannot be secured with personal assets of the guarantors. The imputed rate of interest cannot exceed 13.25% plus the Government of Canada bond rate for the term of the lease. This interest rate includes an administration fee of 1.25%. Only leasing companies that are registered in the Capital Leasing Pilot Project may issue a capital lease, they are listed at the following site. http://strategis.ic.gc.ca/epic/internet/incsbfp-pfpec.nsf/en/h_la00012e.html Offers customized term financing up to $150,000 for new businesses demonstrating long-term viability. Eligible businesses, in the manufacturing, distribution, services and tourism industries who are at the start-up stage or experiencing their first wave of growth. The BDC considers each request case by case. Financing can be used for working capital, acquisitions, fixed assets, marketing and start-up costs. Designed to enhance the quality of life in Canada through supporting the development of co-operatives in areas of federal priority. There are two components:
CDI funding will help to pay for the costs of implementing a project. The expected funding range for individual projects is between $5,000 and $75,000 per year. The program ends on March 31, 2008. Applicants or their partners in the community are expected to contribute at least 25% of the total project costs. Offers loan guarantees to co-operatives establishing or expanding their activities. To qualify, applicants must demonstrate that they are unable to obtain financing from other sources such as chartered banks, credit unions or other financial institutions on resonable terms. Funds must be used to productive purposes, including the purchase of building or equipment, renovation, expansion or operational expenses. Provides small grants for start-up expenses leading to the formation of a cooperative, cooperative education, promotion, research and market development. A cost-shared program for companies considering an investment in Manitoba which could result in the development or expansion of manufacturing, processing or related facilities in Manitoba. The program covers up to 50% of the cost (to a maximum of $25,000) to hire an independent, arms-length consultant to research and compile a feasibility study or business plan. Please note that the application for assistance must be approved prior to the consultant commencing work on the project. The Canada Council for the Arts offers a broad range of grants and services to professional Canadian artists and arts organizations in dance, media arts, music, theatre, writing and publishing, interdisciplinary work and performance art, and the visual arts.
Manitoba Industrial Opportunities Program (MIOP)
NRC Industrial Research Assistance Program (NRC-IRAP) This service provides technical and business advisory services, coupled with funding opportunities. This program is accessible to Canadian small & medium enterprises (500 employees or less) that are incorporated. There are 4 components: Business Development Bank of Canada - BDC Phone: 1-877-232-2269 Internet: http://www.bdc.ca/en/home.htm Provides loans of up to $250,000 to innovative businesses positioning themselves to take advantage of global markets by developing or implementing an innovation strategy or industry adaptation, researching and developing new products and services or e-business, buying or developing new technologies for product or process improvement, introducing quality management standards, planning and implementing a marketing plan or growth strategy, training and developing management and staff, or developing foreign markets. This non-government fund provides loans and equity investments for small business projects (including worker co-ops), housing and social service projects. Through their investments, the Fund aims to promote self-reliance, dignity, self-respect and a better quality of life for healthier communities. Knowledge and Growth Loan FundWestern Economic Diversification - WD; Business Development Bank of Canada - BDC Phone: Toll free 1-877-232-2269 Fax: 1-877-329-9232 Internet: http://www.wd.gc.ca/finance/programs/xkbi_e.asp For knowledge-based small and medium sized businesses. Eligible companies will be involved in: advanced materials, aerospace, advanced manufacturing technologies, biotechnology, environment, health, information technology and telecommunications, multimedia, film, tourism, ocean industries, or other products and services deemed eligible. Loans from $50,000 to $500,000 per project and $1,000,000 per borrower, are offered on flexible terms with repayment normally within seven years. Interest rates are set at the BDC's borrowing rate plus a risk premium. Designed for manufacturing and processing companies that want to increase production but need financial support to acquire the necessary equipment. Loans can range up to $5,000,000 offer flexible repayment terms. BDC can offer up to 100% of the cost of new and used equipment, with an additional 25% to cover the costs associated with installation and assembly of the equipment and training for the employees who use it.
SEED Winnipeg Inc. Supporting Employment and Economic Development Assists low-income individuals or groups to establish small businesses by providing business planning, assistance, training, and after-care services. SEED also assists low-income individuals to save money for assets through its Asset Building Programs. Other programs available through SEED Winnipeg Inc. include: Community Enterprise and Community Worker Co-op Program, Community Economic Development (CED) Technical Assistance, and Research and Development . SEED's Business Development Program also provides access to the Enhanced Self Employment Program for individuals who are on income assistance. Business Loans of up to $10,000 are available through a partnership with Assiniboine Credit Union. SEED clients are also able to access other loan funds through its program. Self-employment Program - SEHuman Resources Development Canada and Manitoba Advanced Education and Training Winnipeg Coordinators: YMCA/YWCA Employment Services - 204-989-5860 Meyers Norris Penny - 204-775-4531 CDEM (francophone delivery) - 204-925-2834 Rural Manitoba - Contact your local Employment Office (a listing is available through the following website): http://www.hrsdc.gc.ca/en/gateways/where_you_live/regions/offices/mb.shtml Assists eligible individuals with a viable business idea to create their own employment by providing the training and support necessary to start a business. To be eligible, applicants must currently be receiving Employment Insurance (EI) benefits, be eligible for Employment Insurance Benefits or have received EI/maternity/parental benefits within the last few years. Participants are selected through a comprehensive review process. Successful applicants may receive business-planning support for up to 52 weeks and income support for up to 39 weeks. Participants may also be eligible for personal supports such as assistance for disabilities, transportation and dependent care. If you have a disability, you may receive assistance for up to 78 weeks. Pre-approval is required for all proposed projects. Provides term loans to small and medium sized businesses for a variety of commercially viable projects, including expansion projects, plant overhauls, the purchase of existing businesses, and the acquisition of fixed assets. In some cases, the loan may be used to reconstitute working capital depleted by capital expenditures or to finance sales growth. Repayment terms are flexible and structured in accordance with the client's ability to repay. Helps finance high-end tourism operators, or start-ups in potentially viable destination centres, specifically single season tourism infrastructures or operations that have the potential to expand beyond a single season. The BDC considers each request case by case. Loans can be used for expanding, enhancing and upgrading facilities to help meet increased demand, to attract more international tourists, and to improve quality to meet international standards. Program offers flexible repayment terms. Offers a range of services intended to help new and existing women entrepreneurs. These include practical loan options to start or expand businesses which are 50% women-owned and controlled. There is no minimum loan amount and the maximum loan amount is $100,000. The Women's Enterprise Centre also offers comprehensive, confidential advice from experienced professionals by appointment and continuous business knowledge development through seminars, mentoring programs, and youth programs.
Young Entrepreneurs Program Aboriginal Business Financing ProgramsFor a complete listing of programs and services for aboriginal business people, please refer to the Aboriginal Business Info-Guide. Entrepreneurs with DisabilitiesFor a complete listing of programs and services for entrepreneurs with disabilities, please refer to the Entrepreneurs with Disabilities Info-Guide. Rural Business Financing ProgramsThe following programs are specifically for Manitobans whose businesses are located outside of Winnipeg. For a complete listing of programs and services for entrepreneurs in Rural Manitoba, please refer to the
Rural Info-Guide. Western Economic Diversification Canada -WD (Call the C/MBSC Toll free at 1-800-665-2019 to find the Community Futures Office for the service location nearest you.) Internet: http://www.wd.gc.ca/pos/cfdc/xindex_e.asp# An economic development initiative for rural communities and businesses. The program includes strategic community economic planning, small business information and counselling, and repayable loans of up to $150,000 for the creation of a new business or to assist existing businesses expand. A not-for-profit organization which manages federal funding set aside for Manitobans with innovative projects which are agricultural in nature that lead to long-term social, economic and environmental benefits in rural areas of the province. Open to all sectors of the agricultural industry including commercial and non-profit organizations, corporations, cooperatives, marketing boards, institutions, associations, commodity groups and private individuals. Funds 1/3 of total project costs up to a maximum of $200,000. Priority is given to projects in which industry partnerships have been formed and which are not eligible for funding through other government programs. Eligible projects include projects which address new value-added products and processes, technical analysis and technical feasibility studies, market and venture assessments, economic feasibility studies, adaptive research, support for engineering prototypes, strategic market plans and strategic business plans. Will cover up to 50% of the cost of hiring an independent consultant for the purpose of researching and compiling a feasibility or business plan. Approval for funding must be received before commencing with the study. The study may include a financial analysis, market analysis, engineering analysis or a combination relative to the development of a new or expanding business. This program provides financial support for rural and northern community projects initiated by local communities, organizations and businesses that enhance "main street" public places and building exteriors. There are two components: Hometown Meeting Places - funding up to a maximum of $5,000; and Hometown Main Streets Enhancements funding up to a maximum of $1,000. Helps new and existing businesses obtain equity financing from financial institutions by guaranteeing individual capital loans between $10,000 and $100,000. Every applicant must attend a two day Business Planning Seminar, before loan funds will be released. Costs associated with processing the loan are the responsibility of the applicant. Interest rate is Prime plus one percent. Venture CapitalNOTE: Venture capital is a method of financing whereby a company obtains the funding they need while the venture capitalist receives a piece of the company (often a majority position) and takes an active role in management. Venture capitalists usually invest in expanding firms and look for rapid growth in order to obtain large scale returns on their investment. ENSIS Growth Fund is a tax advantaged retail venture capital fund, which was established to provide Manitoba entrepreneurs with a source of patient equity capital to grow and expand their businesses, and to provide Manitoba investors with an experienced and proven management team capable of maximizing shareholder returns from these investments. ENSIS Growth Fund focuses on small and mid-sized Manitoba businesses in the growth stage of development. Target companies typically have established products, customers and distribution channels, as well as experienced proven management teams. Eligible investee companies must have less than $50 million in total assets at the time of investment. ENSIS Growth Fund investee companies must be Manitoba based, generally defined as having a majority of employees in Manitoba. Size of investments range from $1,000,000 to a maximum of 10 per cent of net assets. Preferred range is $1 to $3 million.
Venture Capital Stimulates the formation of and provides venture capital to Canadian businesses in leading-edge industries with a strategic market position and a dynamic management team. Funds ranging from $500,000 to $3 million can be used to help finance a company's capital-intensive research and development cycle, broaden a company's export markets, or take the company public. The Business Development Bank will actively seek divestiture opportunities once a durable benefit to each party has been achieved. Wage SubsidiesNote: For a more detailed listing of similar programs, please see the
Youth Services Info-Guide . Provides Manitioba businesses and institutions with wage incentives of up to $3.40 per hour to hire full-time Manitoba post-secondary students, enrolled in, at minimum, a two year program. The program operates September to April for university students and September to mid-June for college students. Funds proposals from First Nations and Inuit governments and organizations to provide supervised work experience for out-of-school unemployed youth (ages 15 to 30) in community service, community businesses or other work experience that will contribute to their employability. The private sector can receive up to 50% of the applicable minimum wage plus mandatory employment related costs. Note: Where a participant with disabilities is hired, all employers are eligible to apply for 100% of the wage. A maximum contribution of $3,000 per participant may be available, on an actual cost basis, for special equipment and facilities to accommodate the participant's needs. Provides an opportunity to recent graduates in science, engineering or business to gain relevant and meaningful work experience. Activities may include all aspects of the innovation or technology process including bench level research, scale-up testing, pilot plant operations, analytical testing, calibration, technical documentation and field tests, work in the fields of geomatics and geology, as well as environmental work in earth sciences, mining, forestry and energy. The maximum contribution per internship from the fund is $12,000 over a maximum of 52 weeks.
Publisher Project Support Program The Program assists Manitoba book publishers with the costs of projects which will increase their company's efficiency, productivity and/or overall financial viability. Priority is given to projects which are part of a long-term company business plan and include purchase or upgrading of existing/new publishing and management technologies; professional skills upgrading at accredited post-secondary institutions (i.e. Simon Fraser University Publishing Programs, Banff Centre); special costs related to an extraordinary publishing venture such as outside editorial, design or research costs; wages for specialized, temporary staff related to special projects or systems upgrading. The Program funds up to 50% of eligible costs of an approved project to a maximum of $15,000 per publisher subject to available funds. NOTE: One application in-take per annum - in April/May. Projects are evaluated by two out-of-province assessors.
Publisher Marketing Assistance Program
Wage Subsidy Program Employers are given an incentive to hire someone who has difficulty accessing employment due to special barriers and who would require on-the-job experience to become fully productive. Eligible employers include businesses, not-for-profit organizations; municipal governments; bands/Tribal councils; and public health and educational institutions. Youth Financing ProgramsNOTE: For a complete listing of programs specifically for Young Entrepreneurs between the ages of 18 and 35 years of age, please refer to the
Youth Services Info-Guide.
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