Business Start Program (MB)

Summary

The Business Start Program 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 business registration or incorporation costs, equipment and inventory purchases, promotional costs and working capital needs.

Eligibility Criteria

A. Applicants must:
1. be a Manitoba resident, age 18 or over, and eligible to work in Canada.
2. develop a sound business plan.
3. complete a three-day Business Planning Workshop before loan funds will be released.
4. contribute equity equal to 40 per cent 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 12 months.
5. not have owned a similar business in the past 12 months.
6. be approved by a participating financial institution after applicant credit rating and debt capacity are considered.

B. New businesses must:
1. be operated in Manitoba.
2. be a business created for the purpose of making a profit.
3. not be in operations in any of these categories: financial services, insurance, real estate services, professional and primary production (oil and gas, pulp production, mining and farming).
4. be starting up or 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.
5. employ the applicant for a minimum of 20 hours per week on average.
6. 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. 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.
8. be reputable and appropriate in nature.

Note: An existing business bought by a new owner-operator will not be considered a new business.

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 at the following website: http://www.gov.mb.ca/business/financing/ or by calling 204-984-0037.
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 September 1, 2011):