Enhancements to the Rural Entrepreneurs Assistance (REA) program have added a significant boost to the number of entrepreneurs using the program.

REA guarantees loans to boost business growth and economic opportunities in rural areas. The maximum loan amount guaranteed rose to $200,000 this year, which has made it possible for the program to finance projects with larger initial asset requirements.

Other enhancements include longer guarantee terms (increased from 5 to 10 years) and making the transfer of existing businesses eligible for support.

 "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," said Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk.

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.

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