If you are a First Nations entrepreneur in Manitoba with a business idea, the First Peoples Economic Growth Fund (FPEGF) can pay for most of the cost of having a professional business plan written. The program is called FPEGF Business Plan Assistance. This guide walks through who can apply, what FPEGF asks for, and what happens once the plan is done.
The program details below come from FPEGF’s own website and published documents. Program details can change, so confirm the current rules with FPEGF before you apply.
What Business Plan Assistance covers
FPEGF is an economic development initiative of the Province of Manitoba and the Assembly of Manitoba Chiefs. Its Business Plan Assistance program helps First Nation individuals and First Nation-based enterprises hire a professional consultant to research and write a business plan. The plan is then used to attract financing for the business.
According to FPEGF, funding is available for up to 75% of the cost, to a maximum of $20,000. The funding is non-repayable. The client is expected to pay the first 25% of the cost.
Here is how that works on a $5,000 business plan:
- FPEGF contribution (75%): $3,750
- Your share (25%): $1,250
The $20,000 cap only comes into play on larger plans. At 75%, the cap is reached when a plan costs about $26,700.
Step 1: Check that you are eligible
FPEGF’s Business Plan Assistance page lists these requirements. Applicants must:
- Be a member of a First Nation, with a headquarter location in Manitoba.
- Be 18 or older and eligible to work in Canada.
- Submit an application describing the business they want the plan for.
- Not have owned a similar business in the past 12 months.
- Provide the name and qualifications of the proposed consultant, the proposed terms of reference, and a written proposal that includes a quote.
FPEGF also says the program is for concepts that, after initial screening, show an excellent opportunity but need financial help to develop a professional plan. In other words, FPEGF looks at the idea before it agrees to fund the plan.
Step 2: Write a short business concept summary
FPEGF asks applicants to attach a business concept summary to the application. It should include, but is not limited to:
- Business overview
- Industry overview
- Marketing strategy
- Management experience
- Staffing
- Estimated project costs and financing
This does not need to be long. A few clear pages that explain what the business will do, who will run it, and roughly what it will cost is a good starting point. If you are working with an Economic Development Officer (EDO), they can often help you pull this together.
Step 3: Get quotes from consultants
FPEGF recommends getting three competitive quotes. Each consultant should give you a written proposal with the scope of work and price. FPEGF needs the name and qualifications of the consultant you choose, the terms of reference, and the quote.
When you compare quotes, look beyond the price. Check that each proposal covers FPEGF’s minimum business plan requirements (see Step 5), including the financial projections. A cheaper plan that is missing required sections can slow down your funding application later.
Acadia Hill provides a written quote and scope for FPEGF applications. You can request one here.
Step 4: Apply, and wait for approval before work starts
FPEGF publishes separate application forms for individual businesses and community businesses on its Business Plan Assistance page. Submit the application with your concept summary and the consultant details and quote.
Approval of funding is required before the consultant starts the assignment. Keep this order in mind when you plan your timeline: apply, wait for FPEGF’s approval, and only then have the consultant begin.
Step 5: Make sure the plan meets FPEGF’s minimum requirements
FPEGF publishes a document called Business Plan Minimum Information Requirements, set out as the consultant’s scope of service. It is a guideline, and FPEGF says every plan should be tailored to the business. FPEGF also recommends contacting one of its representatives to confirm the plan will meet its requirements.
The guideline covers these sections:
- Executive summary of one to two pages.
- Business description, including location (on or off reserve), ownership structure, percentage of Indigenous ownership, and the products or services.
- Project costs and financing, with a detailed list of costs, supplier quotes or estimates, and a summary of equity, government assistance and commercial financing. Total costs should match total financing.
- Market: local and regional trends, the target market, competitors and suppliers.
- Sales and marketing: pricing, promotion and expected revenue.
- Operations: the management team, day-to-day operations, controls, employment created, and risks.
- SWOT analysis.
- Financing: terms of government and commercial financing, the loan repayment plan, and the owner’s equity position.
- Environmental issues and any approvals or permits needed.
- Consultations: a list of third-party contacts.
- Financial projections.
- Appendices, such as résumés, supplier quotes, permits, letters of support and appraisal reports.
The financial projections get special attention. FPEGF states that the cash flow, balance sheet and income statements are mandatory. They must cover at least two years for projects under $150,000 and three to five years above that. The detailed guideline asks for three to five years of projections, with the first year shown month by month, plus a summary of project costs and financing and a set of performance measures such as break-even revenue.
If you are buying or expanding an existing business, the guideline also asks for at least the last three years of historical financial statements.
Step 6: Use the plan to apply for financing
A business plan is not the end goal. It is the document you use to apply for money to start, expand or buy the business. FPEGF’s own programs include the Business Contribution Fund, which provides non-repayable contributions, and loan programs such as the Entrepreneur Loan Program.
For the Business Contribution Fund, FPEGF lists these points:
- Up to 40% of eligible costs, to a maximum of $99,999 for a business owned by a First Nation individual, or $250,000 for a business owned by a Manitoba First Nation or a group of Manitoba First Nations.
- At least 10% cash equity from the owner.
- A commercial loan of at least 40% as part of the total financing.
- At least 51% First Nation ownership.
- The business must show viability and management capacity through a business plan.
When FPEGF reviews financing applications, its published approval criteria look at the feasibility of the plan (including the owners’ education and experience), the effect on the community (such as jobs created and the impact on existing businesses), and the applicant’s ability to borrow and repay. A good plan answers those questions directly.
If a contribution is approved, FPEGF says there is generally a three-year control period. During that time you submit financial statements and a Business Performance Review. If the business stops operating or changes in a significant way during the control period, the contribution can become repayable.
A simple checklist
- Confirm you meet the eligibility rules.
- Write a short business concept summary.
- Get quotes from consultants (FPEGF recommends three).
- Submit the Business Plan Assistance application with the consultant’s details and quote.
- Wait for FPEGF’s approval before the consultant starts.
- Work with the consultant to complete a plan that meets FPEGF’s minimum requirements.
- Use the finished plan to apply for financing.
Frequently asked questions
How much does FPEGF pay toward a business plan?
Up to 75% of the cost, to a maximum of $20,000. It is non-repayable, and you pay the first 25%.
Do I have to get three quotes?
FPEGF recommends three competitive quotes. You must provide the chosen consultant’s name, qualifications, terms of reference and quote.
Can the consultant start before FPEGF approves the funding?
No. FPEGF requires funding approval before the consultant starts the assignment.
I owned a similar business last year. Can I still apply?
FPEGF’s eligibility rules say applicants must not have owned a similar business in the past 12 months. Talk to FPEGF about your situation.
How do I contact FPEGF?
FPEGF lists 1-888-942-6026 (toll free), 204-942-6026 in Winnipeg, and info@fpegf.ca.
Next steps
Acadia Hill prepares FPEGF business plans and provides the written quote and scope that FPEGF asks for. Read more about our FPEGF business plan service and our work on Indigenous business plans, or contact us to talk about your project.