Frequently Asked Questions
What is the Metis Economic Development Fund?
The Metis Economic Development Fund (MEDF) stimulates the economic development of Manitoba Metis businesses & entrepreneurs by providing equity and/or debt financing creating equity partnerships. MEDF concentrates on businesses & entrepreneurs which are in growth, expansion, or acquisition phases. The Fund may also invest in start-up ventures when the viability of the business outweighs the increased investment risk.
What is Equity Investing Partnership?
Equity investing is money invested in - rather than loaned to - a business enterprise for the purpose of providing it with needed capital for start-ups, acquisitions, expansion, and/or growth phases. Acting for the benefit of all stakeholders, MEDF will assist the corporation by leveraging intellectual knowledge, relationships, and other economic development opportunities in private and public sectors. Another benefit of equity financing is that the business does not face the same type of fixed interest and principal repayment obligations associated with debt financing. Lastly, MEDF is not interested in long-term investments rather seeking an investment exit within a 3 – 7 year timeframe.
What is MEDF’s objective?
The objective of MEDF is to promote the economic development, skills, and financial opportunities of Manitoba Metis entrepreneurs & businesses.
What is the nature of funding?
Financing is available up to $500,000 with an anticipated holding period between 3 to 7 years (to a maximum 10 years) and a maximum ownership of 35% of the fair value of the corporation. A variety of financing instruments could be utilized and tailored to meet the specific needs of each opportunity.
Who is eligible?
The Fund will be available to all Metis owned and controlled enterprises incorporated in Manitoba. Applicants will need to demonstrate their Metis Heritage via genealogy.
Equity Investing Parameters:
Corporations seeking equity investment would need to demonstrate the following:
- Be owned and controlled by individuals who reside in Manitoba with Metis ancestry proven through genealogy.
- Have an experienced, well-balanced management team.
- Submit a comprehensive business plan outlining the product and service offering, with a well-defined market with growth potential and a clearly defined exit strategy.
- Be economically viable and able to provide a positive return on investment to the Metis entrepreneur, communities and the Fund (non-profit businesses will not be considered).
- Clearly defined investment exit strategy targeting between 3-7 years from investment with a max hold period of 10 years
- Max investment will be the lessor of $500,000 or 35% of the fair value of the company
- Key Industries: life sciences, information and communications technologies, energy and clean technologies, wholesale and distribution, advanced manufacturing, mining and natural resources, other as agreed to by MEDF.
Corporations seeking financing would need to demonstrate the following:
- Metis controlled incorporated businesses within Manitoba
- Maximum financing amount $500,000
- Maximum amortization 10 years
- Minimum 10% Metis cash equity
- A business plan
- Security; financing should not exceed 75% of the realizable value of assets provided
- Financing is ineligible for personal/consumer purchases or for residential real estate purchases or improvements
- No loan guarantees
Forms of Financing Options
MEDF invests capital in the form of equity and/or quasi-equity to Manitoba Metis businesses. The Funds investment and ownership is formalized through the following financial instrument(s):
- common and/or preferred shares
- convertible preferred shares
- convertible debentures
- subordinate debt
- other, as agreed to by MEDF