Business Investment Loans

Northwest CFDC, throughits staff and Board of Directors, administers a small business investment fundto assist in the establishment or expansion of small business in the northwestregion of Manitoba.The fund is intended as a lender of last resort, and provides repayable smallbusiness loans; loan guarantees, and in certain cases, will consider equityparticipation.

The following are answersto some typical questions regarding the loan program:

Am I eligible?
The Business Investment Loan Fund is open to any individual, partnership, orcorporation located in or intending to locate in the northwest region. Allbusiness sectors (retail, tourism, manufacturing, etc.) are potentiallyeligible and will be considered, although certain sectors may be given higherpriority as a result of opportunities and objectives identified by Northwest CFDC. Eligibility will also be affected by theability to obtain financing from conventional lenders and programs, as will thenumber of new and permanent jobs created by the proposed venture, applicantequity, 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 interestrates equivalent to bank prime plus 1% to 3%. Individuals are encouraged toobtain funding elsewhere, and the staff can assist individuals in identifyingother relevant government programs and services and in helping withapplications 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 consideredwill be for smaller amounts.

How much equity isrequired?
A minimum of 10% equity is required, and business and personal collateral maybe requested to secure the financing provided.

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