BRISK BUSINESS FOR RURAL ENTREPRENEUR LOAN PROGRAM:  WOWCHUK

Business owners are taking advantage of the province's Rural
Entrepreneur Assistance (REA) program that guarantees loans to
boost business growth and economic opportunities in rural areas,
Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk
said today. 
 
"Recent enhancements to the REA program have translated into a
significant increase in the number of entrepreneurs taking
advantage of this business support initiative," said Wowchuk.
 "Entrepreneurs see clear opportunity in doing business in rural
Manitoba and this loans program is a tool to help get a new
venture off the ground or to expand an existing business."
 
The minister noted, by the end of October 2007, there were 34
loans approved for a total of $3.5 million.  Last year, by Oct.
31, 2006, the REA program had guaranteed 24 business loans in
rural communities for a total of $1.7 million.
 
REA is a business support program delivered and administered by
the Manitoba Agricultural Services Corporation (MASC). Under the
REA, participating financial institutions that grant eligible
loans are provided with a guarantee of 80 per cent.  The maximum
interest rate on such loans is prime plus one per cent. Loans can
be used to purchase or expand an existing business or launch a
new business venture.
 
Applicants must contribute 20 per cent of the total project cost
in the form of cash, land, buildings, equipment, inventory or
other assets that are used in the business.
 
Program enhancements announced last year include raising the
maximum loan amount guaranteed from $100,000 to $200,000,
providing more financing opportunities for projects with larger
initial asset requirements, extending the term of the guarantee
to 10 years from five years and making the transfer of existing
businesses eligible for support.
 
"The economic benefits of rural business development has a direct
positive impact on communities across the province," Wowchuk
said.  "The REA loans program is an excellent example of
Manitoba's Creating Opportunities action plan for rural growth at
work."
 
Further information on the Rural Entrepreneur Assistance program
is available from any Manitoba Agriculture Service Corporation
(MASC) office and online at www.masc.mb.ca.