Manitoba Industrial Opportunities Program (MIOP)

The objective of the Manitoba Industrial Opportunities Program (MIOP) is to secure significant business investment which would not occur in Manitoba without provision of some level of government assistance.  The major criteria in assessing the agreement will be the viability of the business proposal and its resulting benefits to the Manitoba economy.  The Program provides secured loan or loan guarantee assistance to recipient companies in return for fixed asset investment and long term job creation. 

It is of utmost importance that the project be commercially viable and that there be a strong commitment from the applicant.  The nature and level of provincial support offered to a project will be established by a rigorous benefit/cost analysis and risk appraisal. 

The program provides a highly flexible support package tailored to meet the requirements of each project.  Among other factors the assessment considers key factors such as:

• The stability, salary and skill levels of the jobs to be created and their impact on    diversification of the technological/industrial base in Manitoba.
• Any regional development components of a project.
• The increase of Manitoba exports or the replacement of Manitoba imports.
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Eligibility Criteria

Eligible Projects:

 Target private sector projects are those which involve:

• Major capital investment in manufacturing, processing or production of other value added tangible items.  The proposed capital investment should be in excess of applicant’s historical level of annual capital expenditures and significant in terms of the asset base of the company.
• High tech and teleservices industries as well as financial services along with head office operations of the retailing, wholesaling and distribution sectors.

Creation of significant numbers of long term jobs and their types will be a prime consideration

 Equity:

Minimum equity requirement of 20%.

Benefit to the Province:

All projects must demonstrate net benefit to the Province.  The assistance provided will be determined based on an overall assessment of fit with Program requirements.

 Repayment Terms:

A typical range for loan repayment terms is 60 to 84 months.

Start ups and other types of high risk projects will have stringent equity and security requirements.

 Security:

All MIOP loans are required to be secured.

 Size of Loan:

Typical Range for MIOP loans is:

• Minimum loan amount $300,000.
• Maximum loan amount $5,000,000.
• Larger loans may be considered.
• Assistance from all levels of government must not exceed 50% of eligible project costs.

 Legal & Administration Fee:

A minimum fee is payable on acceptance of the formal offer.  Any additional fees and expenses incurred may be deducted from the first advance. 

Application Fee:

An application fee may be required to accompany instructions from client to proceed with developing a formal agreement/Letter of Offer.

Please contact the Financial Services Branch of Manitoba Entrepreneurship, Training and Trade for additional information at 204-945-1015 or 1-800-282-8069 ext.1015.

Summary

 

Manitoba Contact(s):
Mr. Jeff Hodge
Financial Services
Entrepreneurship, Training and Trade
1040 - 259 Portage Avenue
Winnipeg, Manitoba  R3B 3P4
 

Telephone: 204-945-1015
 

Fax: 204-945-1193
Toll-free (information): 1-800-282-8069 ext. 1015
Email: Jeffrey.hodge@gov.mb.ca 

 

Western Regional Office
Entrepreneurship, Training and Trade
Room 131
340 - 9th Street
Brandon, Manitoba  R7A 6C2
Telephone: 204-726-6250
Fax: 204-726-6403
   

 

MIOP INFORMATION REQUIREMENTS

In order to undertake our appraisal, we require a comprehensive business plan which includes the following key information:             

1. Brief information on the following:

   • background/history of company;
   • description of ownership structure;
   • description of production (and distribution) facilities;
   • description of products/product categories;
   • description of markets, exports, competitors, etc.;
   • description of recent market trends in your industry and your predictions of future market trends.
2. Description of project, rationale, critical dates.
3. Description, timing, and amount of respective capital expenditures.
4. Description (including respective salary level), timing, and number of jobs to be maintained.
5. Outline of the proposed project funding including all sources of debt and equity financing.
6. Resumes of key management personnel.
7. Historical financial statements, audited if available (Balance Sheet, Statement of Income, Statement of Changes in Financial Position, and Cash Flow Statement) for the last three years (and most recent interim statement if available).
8. Projected financial statements (Balance Sheet, Statement of Income, Statement of Changes in Financial Position, and Cash Flow Statement) for three years.
9. The loan security being offered.

NOTE:  To do a preliminary assessment we require the information listed in numbers 2,3,4,5 and 6 above, and the most recent financial statements and projections would also be included.