Financing
The Metis Economic Development Fund (MEDF) stimulates the economic development of Manitoba Metis businesses & entrepreneurs by providing equity and/or debt financing creating equity investment partnerships.
MEDF financing program will assist businesses owned or controlled by Metis in Manitoba with loans for start-up, growth, acquisition, or expansion purposes. It may also provide such businesses with management advisory services and other services as it has available from time to time.
Loans may be for fixed asset acquisitions, for inventory, for advertising and business promotion, and/ or for working capital. Also, for bridging confirmed secured government grants or contributions. Refinances are permissible only in cases where the client and the Corporation will benefit.
Who is eligible for MEDF Financing?
The Fund is available to all Metis owned and controlled enterprises incorporated in Manitoba. Applicants will need to demonstrate their Metis Heritage via genealogy.
Ownership
Maximum MEDF ownership is 35% of the fair value of the corporation. Valuation of the business opportunity will be determined by a qualified third party (typically a Chartered Accountant with a Charter Business Valuator (CBV) designation) or as agreed by both parties.
Minimum Metis Entrepreneur ownership is 20% of the fair value of the corporation and together with other Metis shareholders or MEDF should be a minimum Metis ownership of 51%. Contact one of the MEDF representatives to discuss in greater detail.
A variety of financing instruments could be utilized and tailored to meet the specific needs of each opportunity.
Financing Amounts
Financing is available from $20,000 to $500,000 per opportunity:
Interest rate afforded to any given loan will be based on the quality of the applicant and security provided. Interest rates on existing loans can be amended for competitive, risk, and/ or compassionate reasons by a way of a client signed amending agreement, within the existing current interest rate ranges.
Time Horizon
Maximum financing amortization for loans will is 10 years however extended amortizations are available if secured by a mortgage on real estate up to fifteen (15) years.
Ineligible
- MEDF will not be participating in the guaranteeing of loans on behalf of investee companies in order to minimize risk for the financial institution
- Not-for-profit organizations
- Existing businesses indicating negative net worth on their latest two annual financial statements; after adding back shareholder loans, and/ or owners equity
- Insolvent, in receivership, in un-discharged bankruptcy, or who have any outstanding judgment or statement of claim, or whose principal is such
