Community Economic Expansion Program (NGO)

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The Community Economic Expansion Program is intended to assist First Nations community-owned businesses with start-up, expansions or acquisitions.

Summary

The Community Economic Expansion Program is intended to assist First Nations community-owned businesses with start-up, expansions or acquisitions. The intent is that these viable businesses will help to create wealth and jobs for First Nations.

Nature of Funding

The maximum loan amount is $300,000 or 50 percent (whichever is less) of the fair market value of the total project costs (including identified start-up costs and working capital).

  • Appraisal of the project costs may be required.
  • At the end of the loan, if the business is still in operation, has not been sold and all loan payments have been made consistently, up to $75,000 or 25 percent of the total loan (whichever is less) may be forgiven.

Loan Terms and Conditions

  • Loans are repayable over a term not to exceed 10 years (buildings not to exceed 20 years).
  • Loans are interest-free.
  • Repayment of principal, beginning within one year from the disbursement of loan funds, will be required in equal monthly amounts over the remaining loan term.
  • Business assets will be registered as security or collateral for the loan and subordinate to other debt financing obtained to support business activities.
  • Loan proceeds can be used for the following purposes: starting a new business, purchasing an existing business, or upgrading or expanding an existing business.
  • Loans are not provided for refinancing purposes.
  • Proceeds cannot be obtained to repay existing debt.

Eligibility

Small and medium-sized viable businesses owned by a Manitoba First Nation may be eligible.

Applicants must provide a sound business plan that demonstrates viability of the business.

The community will be expected to contribute cash equity or equivalent to a minimum of 10 percent of the total project costs. Business projects deemed to be higher risk will require a greater level of equity contribution. The applicant’s equity contribution can be cash or unencumbered business assets supported by purchase invoices or other appropriate documentation supporting the fair market value of the business assets.

Businesses funded under this program must:

  • have a profit objective (non-profit projects will not be considered)
  • demonstrate viability through a sound business plan
  • primarily operate in Manitoba
  • be reputable and appropriate in nature
  • be at least 51 percent owned and controlled by Manitoba First Nations

Contact

First Peoples Economic Growth Fund Inc.
315 – 260 St. Mary Ave.
Winnipeg, Manitoba R3C 0M6
Phone: 204-942-6026
Toll free: 1-888-942-6026
Fax: 204-942-6441
Email: info@firstpeoplesfund.ca
Website: www.firstpeoplesfund.ca