Business Start Program (BSP)

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 capital needs and working capital purposes.

Eligibility Criteria

A. Applicants must:

1. Be Manitoba residents, aged 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% 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.
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 reviewed.

B. New Business must:

1. Be operated in Manitoba.
2. Be created to make a profit.
3. Not be operations in any of these categories: financial services, insurance, real estate services, professional and primary production (oil and gas, pulp production, mining or farming).
4. 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.
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 operated 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:   If you buy an existing business it is NOT considered a new business.  You must be starting your business from scratch.

Business Planning Workshop

Starting or expanding your business? This free three-day business planning workshop is designed for new entrepreneurs and also provides valuable information for those currently operating a business.

Workshop attendance is a requirement for the Business Start Loan Guarantee Program, Young Entrepreneurs Program (YEP) and the Rural Entrepreneur Assistance Program (REA).

Topics include:

1. Starting a Business in Manitoba: Everything you need to know to start a small business in Manitoba, including forms of business organization, resources available to small businesses, including financial programs, and the components of a business plan.
2. Accounting & Financial Management: An overview of accounting, bookkeeping, financial statements, small business taxation rates and deductions, and GST, PST and payroll requirements.
3. Marketing: An introduction to marketing strategies for small business.

For a workshop schedule, please refer to our events calendar and look for Manitoba Business Start Program listings. 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 $250 will be charged to successful applicants only.
3. A formal business plan must be submitted with your Business Start Loan application.
4. 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.
5. The application is pages 3-6 of the Manitoba Business Start Program | Loan Application | General Information and Instructions (PDF file). This application can be printed and filled in by hand.
6. A  Manitoba Business Start Program - Online Application Form (PDF file)  can be completed by entering data on-line.  This application must be printed, signed and submitted to a financial institution.  There is no on-line submission.

Participating Financial Institutions (as at March 31, 2011):

Royal Bank
Scotiabank
TD Canada Trust
Access Credit Union
Assiniboine Credit Union
Belgian-Alliance Credit Union
Casera Credit Union
Community Credit Union
Crocus Credit Union
Crosstown Civic Credit Union
Dauphin Plains Credit Union
La Salle 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
Caisse Populaire Groupe Financier
 

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)

Manitoba Contact(s):
Margaret Kelly
Business Consultant, Financial Programs
Entrepreneurship, Training and Trade
c/o Canada/Manitoba Business Service Centre
Room 250 - 240 Graham Ave
Winnipeg, Manitoba  R3C 0J7
Telephone: 204-945-7721
Fax: 204-983-3852
Toll-free (information): 1-800-665-2019
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: margaret.kelly@canadabusiness.mb.ca
 

Christianna Klassen
Business Information Officer, Business Start Program
Entrepreneurship, Training and Trade
c/o Canada/Manitoba Business Service Centre
Room 250 - 240 Graham Ave
Winnipeg, Manitoba  R3C 0J7
Telephone: 204-984-0037
Fax: 204-983-3852
Toll-free (information): 1-800-665-2019
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: christianna.klassen@canadabusiness.mb.ca