REA is one of the programs of the Rural Economic Development Initiative. Through REA, Provincial loan guarantees are provided to financial institutions, such as Crosstown Civic Credit Union, for loans to new, and expansion of existing full time, small and home-based businesses in rural Manitoba.
Who qualifies?
For purposes of this program, a small business is defined as a business in the retail, service or industrial sector which has not achieved gross annual revenues of $1 million or is not likely to achieve this revenue level in its first year of operation.
A home based-business or cottage industry is a small trade, service or occupation producing or processing goods and/or services for consideration or gain out of a home or farm operation or in conjunction with a larger commercial enterprise.
Eligibility
- Under the program, the Province will guarantee a percentage of individual business capital loans between $10,000 and $100,000.
- The loans will be offered and administered by participating credit unions for 5 year terms at an interest rate of Prime +1%.
- The applicant will be required to contribute 20% of the total project costs in the form of a cash contribution, land, buildings, equipment, inventory and/or incremental assets that would be employed in the business.
- The loans are to be used for the establishment of new ventures or the enhancement of existing operations such as:
- The development/commercialization of a new product line or service
- The adoption of a new technology
- The development of significant new markets
- Expansion/Modernization of equipment.
- Ineligible activities include renovations or cosmetic changes to buildings, land signs and promotional materials or refinancing of existing debt.
For more information click here www.cbsc.org