In an effort to boost rural economic development the Manitoba Agricultural Services Corporation is strengthening the Rural Entrepreneur Assistance Program (REA). The improvements to REA include:

• raising the maximum loan guarantee amount to $200,000 from the current $100,000, providing more opportunities for projects with larger initial asset requirements;
• expanding the use of guarantees to cover the purchase of existing businesses, in addition to ongoing uses for business startups and expansions;
• extending the maximum length of a guarantee to 10 years from the current five years to accommodate the repayment of larger loans; and
• increasing the business revenue limit to $1.5 million from the current $1 million to allow clients sufficient cash flow to cover loan repayments.

"Strategic provincial initiatives and co-operation with financial institutions are creating new opportunities for Manitoba's rural entrepreneurs," said Wowchuk.  "The businesses and services supported by the Rural Entrepreneur Assistance Program will facilitate community development and economic growth."

Under the Rural Entrepreneur Assistance (REA) program the province will guarantee individual business loans made by participating financial institutions at an interest rate of prime plus one per cent. REA is one of a range of business support programs funded through the Rural Economic Development Initiative (REDI).

Applicants must contribute 20 per cent of the total project cost in the form of cash, land, buildings, equipment, inventory and/or other assets that are used in the business.

"Our REA enhancements will encourage entrepreneurs and promote the growth of rural businesses," said Wowchuk.  "Ultimately, this initiative will help strengthen the support services that form the base of a community's economy."

Strengthening the Rural Entrepreneur Assistance Program follows the announcement last week of a new provincial action plan to boost rural economic development opportunities across rural and northern Manitoba.  The action plan stems from the recommendations contained in the Creating Opportunities committee report, the product of consultations with more than 330 participants in communities across the province.

The new action plan will guide new rural economic development initiatives in six areas including alternative energy, tourism, agriculture, natural resources, industry services and manufacturing, and Aboriginal and northern initiatives.

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