Expansion Loans
Are you thinking of expanding your business, increasing your product lines or upgrading your equipment? Then you may want to consider a Women's Enterprise Centre of Manitoba Expansion Loan.
Qualified applicants may take advantage of the competitive interest rate of prime + 1%. You may borrow up to $150,000 (if you have an existing loan, you may apply for additional funds with the total amount owing not exceeding $150,000). There is no minimum loan amount.
When you submit a business plan to the Women's Enterprise Centre to access advising services or a business loan, please complete and attach this Business Plan Cover Sheet so that we can match your needs with appropriate services.
Women's Enterprise Centre Loan Program:
- Loans in any amount up to $150,000 are available.
- There are no monthly fees.
- Competitive interest rates
- Expansion loans = prime rate + 1% (must qualify for this rate)
- There are no costs or penalties for early repayment.
- Terms up to five years.
- Female/male partnerships are welcome, provided the woman owns at least 50% of the company and is actively involved in its management and operation.
- Applicants may be sole proprietors, partnerships or corporations.
- Security is required but not necessarily to the full value of the loan.
To qualify for an expansion loan you will need:
- A minimum of three years of profitable operation. This must be verified through professionally prepared financial statements from your accountant.
- One year of projected monthly cash flow and profit/loss statements. Additional projections may be requested if the expansion is a long-term project.
- A business plan (an overview of the existing business and particulars of the expansion as well as a viability analysis).
- Complete loan application and personal statement of affairs forms are required. Normal credit investigation will be completed.
- Detailed listing of aged accounts receivable, accounts payable and inventory may also be requested.
What Can a WEC Loan be Used For?
Women's Enterprise Centre of Manitoba loans can be used for a variety of costs, some of which may not be covered by traditional lending institutions. WEC loans can be used for:- Purchase of an existing business
- Leasehold improvements
- Purchase of inventory
- Purchase of equipment
- Advertising and marketing costs
- One-time or part-time projects will be evaluated on a case-by-case basis
What Can't a WEC Loan be Used For?
There are some expenses that are not eligible for a loan:- The purchase of goodwill
- Owner's draw or salary
- The purchase of land or buildings
- Investments in real estate for speculative purposes
How Does WEC Evaluate the Loan Application?
Each application is evaluated on its own merit. However, there are some conditions that must be met in order for WEC to consider an application.- The applicant must be:
- a legal entity; and
- a woman or an operation owned and controlled by a woman or women; and
- a Canadian citizen or landed immigrant, or a legal entity owned and controlled by a Canadian citizen(s) or landed immigrant(s); and
- operating or about to operate in Manitoba;
- in good standing with WEC on existing financing
- In addition:
- The business plan must demonstrate realistic potential for commercial viability and loan repayment capacity.
- The applicant must demonstrate a reasonable personal history of credit-worthiness and stability or must be able to provide an adequate explanation as to why an exception should be made.
- Cash or other equity contribution by the business owner is encouraged.
- Security is evaluated on a case-by-case basis.
For more information call 988-1860 ( Winnipeg) or 1-800-203-2343
