Rural Entrepreneur Assistance is designed to assist rural businesses in accessing financing. It provides loan guarantees to participating financial institutions for loans to new or expanding, small and home-based businesses in rural Manitoba.
Rural Entrepreneur Assistance (REA) is administered by Manitoba Agricultural Services Corporation, and is designed to assist rural businesses in accessing term financing. It provides loan guarantees to participating financial institutions to new or expanding, small and home-based businesses in rural Manitoba. Loans may also be used to purchase existing businesses.
- Any small business located outside of Winnipeg, which has not achieved gross annual revenues of $2,000,000 and will not likely do so in its first year of operation, is eligible. It can involve retailing, wholesaling, manufacturing, processing or service activity. Value added businesses in the primary sectors are also eligible.
- Note: Ineligible businesses include insurance, financial, real estate investing, consulting, brokerage services, restaurants and those engaged in primary harvesting of resources, primary agriculture or intending only to renovate or make cosmetic changes to buildings.
Loan Guarantees – The Manitoba government will guarantee business loans $10,000 with no maximum. REA guarantees are capped at 80% of the first $200, 000 borrowed; any loan exceeding $200, 000 will have the guarantee calculated as a percentage of the outstanding principal amount. These loans will be offered and administered by participating banks and credit unions with the length of the repayment term being determined by the nature of the project, however the maximum guarantee under the REA program is 10 years. The maximum floating interest rate is prime plus 2.5 per cent. Applicants must contribute 20 percent of the total project cost in the form of cash, land, buildings, equipment, inventory and/or other assets that would be used in the business.
The applicant is responsible for costs associated with drawing up loans and security papers.
How to Apply
- interested business persons should make an appointment with a participating REA Lender. Please contact the REA office at 204-945-2180 or email firstname.lastname@example.org for more information.
- complete and submit the REA application form in full, Part 1 and Part 2, or Part 1 with a satisfactory business plan attached, to the participating lender.
- register and attend the business planning workshop through Entrepreneurship Manitoba.
REA Program Administrator
Manitoba Agricultural Services Corporation
1-5290 Monterey Road
Headingley, Manitoba R4H 1J9