Business Investment Loans

Northwest CFDC, through its staff and Board of Directors, administers a small business investment fund to assist in the establishment or expansion of small business in the northwest region of Manitoba. The fund is intended as a lender of last resort, and provides repayable small business loans; loan guarantees, and in certain cases, will consider equity participation.

The following are answers to some typical questions regarding the loan program:

Am I eligible?
The Business Investmet Loan Fund is open to any individual, partnership, or corporation located in or intending to locate in the northwest region. All business sectors (retail, tourism, manufacturing, etc.) are potentially eligible and will be considered, although certain sectors may be given higher priority as a result of opportunities and objectives identified by Northwest CFDC. Elegibility will also be affected by the ability to obtain financing from conventional lenders and programs, as will the number of new and permanent jobs created by the proposed venture, applicant equity, security, and the viability of an individual's business plans.

Is this a grant?
No. Northwest CFDC will only consider loans, loan guarantees, or equity participation. All funding is repayable with interest rates equivalent to bank prime plus 1% to 3%. Individuals are encouraged to obtain funding elsewhere, and the staff can assist individuals in identifying other relevant government programs and services and in helping with applications and business plan information for bank financing.

What is the maximum, which can be borrowed?
The maximum amount which can be loaned to any individual, or business, is $75,000. However, it should be noted that the majority of proposals considered will be for smaller amounts.

Howmuch equity is required?
A minimum of 10% equity is required, and business and personal collateral may be requested to secure the financing provided.

How can I apply?
The staff at Northwest CFDC will assess a potential applicant's eligibility, assist in completing application forms, and provide information required to prepare a business plan. The application is then reviewed by the volunteer Board of Directors.

For more information, CONTACT US.