MASC - Loan Guarantee Programs - Rural Entrepreneur Assistance (REA)

Rural Entrepreneur Assistance (REA) provides loan guarantees to financial institutions that are prepared to offer full-time, small and home-based businesses in rural Manitoba. 

Eligibility Criteria

The program is available to businesses located in Manitoba, outside of Winnipeg. Small businesses with $2 million or less in annual income/sales are eligible. Applicants must contribute 20% of the total project cost in the form of cash, land, buildings, equipment, inventory and/or other assets that would be used in the business.

Businesses not eligible include: insurance, real estate, financial, professional and consulting services, restaurants, those engaged in primary harvesting of resources, primary agriculture or those intending only to renovate or make cosmetic changes to buildings.
 

Summary

Loan Guarantees:

• Under REA, guarantees are available for individual business loans between $10,000 and $200,000.
• The loans will be offered and administered by participating banks and credit unions for up to 10-year terms at a Prime + 1% interest rate.
• Loans can be made to owners/operators and cooperatives, and may be used for the purchase of fixed assets, inventory and/or working capital.
• Funds cannot be used to pay existing debts of the company or any individual, nor can loans be transferred. 

How to Access REA Guaranteed Loans:

• For information on applying to REA, interested business persons should contact the REA Program Specialist (contact information below). 
• Local financial institutions will process, approve, disburse and administer REA guaranteed loans. An application form is completed and submitted along with a business plan and application fee of $150 to the lender.

Manitoba Contact(s):
REA Program Specialist
Manitoba Agricultural Services Corporation
816 - 401 York Avenue
Winnipeg, Manitoba  R3C 0P8
Telephone: 204-945-2180
Toll-free (information): 1-800-282-8069 ext. 2180
Web site: http://www.masc.mb.ca/