Loan / Equity Contribution Program
This program is to assist Métis entrepreneurs by providing capital through interest free loans or equity that will enhance the applicant's ability to leverage financing from other institutions and agencies.
CCDF can provide financial assistance of up to the lessor of $200,000 per project or 35% of the value of the fixed assets identified in the program costs.
Purpose:
- The purchase or start-up of a new business
- The purchase of an existing business
- Business expansion or renovation
Method of Investment:
- Re-payable contributions for a term not to exceed seven years
- Equity instruments as follows to be held for a maximum period of ten years:
- Common shares
- Preferred shares
- Convertible preferred shares; or
- Convertible debentures for a maximum period of ten years.
General Guidelines:
- Businesses funded under this program must be for-profit and demonstrate viability through a sound business plan;
- Applicants must contribute a minimum of 5% equity to the project. Projects deemed by the Fund to be higher risk will require larger equity contributions;
- Equity may be in the form of cash, machinery, equipment, real estate or other unencumbered fixed assets. Assets must be valued at fair market value by an independent appraiser.
