Common use of Specific Eligibility Criteria Clause in Contracts

Specific Eligibility Criteria. 1. The amount of the Investment specified in paragraph 2.7(e) of this Agreement shall be transferred by the Applicant from a foreign jurisdiction to the Province of Manitoba and be expended out of the personal resources of the Applicant. 2. The Applicant shall hold and control at least thirty-three and one third percent (33.33%) of the equity in the Business or, if the Applicant does not hold and control at least thirty-three and one third percent (33.33%) of the equity in the Business, the Applicant shall make an equity investment in the Business of at least one million dollars ($1,000,000.00), notwithstanding the amount specified in paragraph 2.7(e) of this Agreement. 3. All incorporated businesses should be incorporated either with the Province of Manitoba or Federal Government of Canada. 4. Any shares in the Business controlled by the Applicant shall be Class A, voting and non-redeemable. 5. If the Investment is made in a business that is newly established by the Applicant, the total amount of the Investment specified in paragraph 2.7(e) of this Agreement shall be expended on tangible assets and start-up costs such as legal services, permits and licenses. 6. The Program will determine, in its sole discretion, the eligibility of any goodwill. If the Investment is made in an existing business or franchise, the value of goodwill will not be considered eligible as an Investment unless the Applicant can support the valuation of the goodwill by providing a business valuation report issued by a Canadian chartered accountant or chartered business valuator. If eligible, the value of the Investment in goodwill will be limited to a maximum of thirty percent (30%) of the amount specified in paragraph 2.7(e) of this Agreement. 7. Working capital will not be considered eligible as an Investment, with the exception of the purchase of start-up inventory which is essential to the Business. The Program will determine, in its sole discretion, the eligibility of any inventory purchased, based on the industry, size and scope of the Business and the type of inventory purchased. If eligible, the value of the Investment in inventory will be limited to a maximum of six (6) months’ worth of inventory in conformity with industry average. However, if the investment is made in an existing business or franchise, the value of investment in inventory will be limited to a maximum of three (3) months’ worth of inventory in conformity with industry average. 8. The purchase of a motor vehicle will not be considered eligible as an Investment unless the purchase of the vehicle is essential to the Business. The Program will determine, in its sole discretion, if a vehicle is essential to the Business. If eligible, the value of the Investment in a vehicle will be calculated as the lesser of either the total purchase price of the vehicle or thirty thousand dollars ($30,000.00). 9. The purchase of real estate will not be considered eligible as an Investment unless the purchase of real estate is essential to the Business. The Program will determine, in its sole discretion, if a purchase of real estate is essential to the Business. If eligible, the value of the Investment in real estate will be calculated as the lesser of either the total purchase price of the real estate or seventy-five thousand dollars ($75,000.00). 10. Cash or cash equivalents, including but not limited to cash identified as current assets in the financial statements of the Business, will not be considered eligible as an Investment. 11. A maximum of three (3) months of operating expense will be considered Eligible as Investment. The operating expense must have been incurred and been paid for in the normal operation of the Business for the purpose of generating active business income. 12. Personal property such as residential real estate or personal vehicles etc. will not be considered eligible as an Investment. 13. The following types of businesses are not eligible as Investments: a) businesses operated primarily for the purpose of deriving passive income such as rent, interest, dividends or capital gains, including a business prohibited by subsection 87(6)(a) of the Regulations; b) immigration-linked investment schemes, as that term is defined in subsection 87(9) of the Regulations; c) businesses established or purchased by another Program applicant or nominee within the previous seven years from the date of this Agreement; d) businesses that are considered ineligible by the Program; and e) businesses which include a share redemption or buy back option.