Q. How do I apply for a loan from SMEDCO?
A. Phone us at (306) 477-4350 and ask for a business consultant or loan officer. We will ask you a few questions and will then send you our loan application form and brochure.
Q. How much equity (downpayment) do I need to qualify for a loan?
A. SMEDCO’s minimum requirement is 10% of the project costs; however a greater downpayment may be required for some projects. Clients are expected to contribute all that they can to the business. Existing vehicles, equipment and other real property can be considered in lieu of a cash downpayment.
Q. Does SMEDCO have any grants for business?
A. No. SMEDCO has never had any grants or forgivable loans; however, we often assist Metis entrepreneurs with applications to Aboriginal Business Canada or the Clarence Campeau Development Fund which have equity contributions for Metis business.
Q. I have never owned a business nor done a business plan – can SMEDCO help me?
A. SMEDCO’s Business Advisory Service, supported in part by Aboriginal Business Canada, can assist you with business information and business planning, however, you will be expected to take an active part in the business planning process and must provide the requested information outlined by the business consultant.
Q. Does SMEDCO charge a fee for a business plan or financial projections?
A. Yes. SMEDCO will charge a fee for business plans and financial projections; however, all initial discussions are free of charge. The amount charged for a business plan depends on the time it takes to complete the plan, and the amount of information the Metis Entrepreneur is able to provide on their own. All efforts are made to arrange for contributions to pay for most of the business planning costs.
Q. What has SMEDCO found to be common mistakes for new businesses?
A. One of the most common mistakes is not keeping proper bookkeeping records and financial statements – many Metis businesses fail for this reason. If a business owner does not have the skills to keep proper financial records, they should hire the services of a qualified bookkeeper or accountant – this is money well spent. Other mistakes include excessive owner withdrawals from a business, not planning for seasonal changes in business, and not setting aside a cash reserve for income tax and major equipment repairs.
