The Business Start Program (BSP) is a loan guarantee program with an educational component. Are you a new business owner ready to begin your journey? Access this three-day business workshop and loan guarantee program to start things off right.
New owner-managed businesses in Manitoba.
The Business Start Program (BSP) is a loan guarantee program with an educational component. Loans to new owner-managed businesses are provided through participating financial institutions and guaranteed by the Manitoba Government. The five-year term loan is a $30,000 maximum amount with an interest rate of prime plus one percent and a one-year deferral of principal repayment. Loan proceeds can provide funds for capital needs and working capital purposes.
- Be Manitoba residents, aged 18 or over, and eligible to work in Canada.
- Develop a sound business plan.
Complete a three-day Business Planning Workshop before loan funds will be disbursed.
(The workshop must be completed in the five year period prior to the loan application date).
- 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.
- Not have owned a similar business in the past 12 months.
- Be approved by a participating financial institution after the applicant’s credit rating and debt capacity are reviewed.
New businesses must
- Be operated in Manitoba.
- Be created to make a profit.
- Not be operating in any of these categories: financial services, insurance, real estate services, professional and primary production (oil and gas, pulp production, mining or farming).
- Be starting up and have been operating less than 12 months before the date of application. A 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.
- Employ the applicant for a minimum of 20 hours per week on average.
- 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).
- Be a business that is substantially different from other businesses operated in Manitoba in the same market area by an associate (spouse, common-law partner, parent or child) of the applicant.
- Be reputable and appropriate in nature.
Note: If you buy an existing business it is not considered a new business. You must start a new business.
- Business Start Loans are administered by participating financial institutions. Participating financial institutions are banks and credit unions in Manitoba. New business owners apply directly to a lender and fill in a loan application form at the bank or credit union.
- Lenders at participating institutions will receive and evaluate your application for a Business Start Loan. An administrative fee of $250 will be charged to successful applicants only.
- A formal business plan must be submitted with your Business Start Loan application.
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 of March 2017)
- Business Development Bank of Canada
- Royal Bank
- Access Credit Union
- Assiniboine Credit Union
- Belgian-Alliance Credit Union
- Caisse Group Financial
- Casera Credit Union
- Catalyst Credit Union
- Crosstown Civic Credit Union
- Niverville Credit Union
- Noventis Credit Union
- Portage Credit Union
- Prairie Mountain Credit Union
- Steinbach Credit Union
- Strathclair Credit Union
- Sunrise Credit Union
- Swan Valley Credit Union
- Vanguard Credit Union
- Westoba Credit Union
Forms for lenders
The following documents are for Lenders who receive an application for a Business Start Loan:
- Processing Instructions for Lenders (PDF file)
- Manitoba Business Start Program Regulation (PDF file)
- Statutory Declaration (PDF file)
- Applicant Equity Requirements (PDF file)
- Business Evaluation Form (PDF file)
- Application Declaration Form (PDF file)
Manitoba Growth, Enterprise and Trade
250-240 Graham Avenue
Winnipeg, MB R3C 0J7
Phone: 204-945-8200 or 1-855-836-7250