YOU’RE LOOKING FOR A BUSINESS FINANCE LOAN!
IS THE CANADA SMALL BUSINESS FINANCING LOAN FOR YOU?
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today.
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
The Government guaranteed business loan in Canada is often the financing that entrepreneurs in startups and small businesses require to access financial assistance. In many cases, it's the ' lifesaver ' that the business owner is looking for. Welcome to CSBF (Canadian Small Business Financing) loans 101. Let's dig in.
GOVERNMENT SBL LOANS ARE EASIER TO GET THAN YOU MIGHT HAVE THOUGHT!
Most business people in Canada, rightly or wrongly, associate anything to do with ' government' as mired in red tape/bureaucracy. That really isn’t the case with the Govt SBL (Small Business Loan) program. It certainly can be tough if you're poorly armed with key critical info on the program itself, how to access it, and, most importantly, how to get approved!
WHAT SIZE COMPANY CAN GET A GOVERNMENT GUARANTEED SBL LOAN
By the way, do not apply if you're a large business - and the program clearly defines that as any business with over 10 Million dollars in revenue. The loan portfolio's actual size is ' large, 'with billions being financed every year for thousands of applicants.
There's no mystery as to the program's popularity, as top experts tell us every day that it's a ' Small ' business that generates employment and taxes in a big way.
HAVE YOU BEEN LOOKING TO RAISE CAPITAL THE DIFFICULT WAY?
Why then do business people/entrepreneurs bother to investigate this type of loan? While many focus a lot of time and effort on raising equity capital from friends and family, angel investors, VCs, etc., they are more often than not disappointed by their efforts in this area.
KEY BENEFITS OF GOVERNMENT SMALL BUSINESS LOANS
What is the appeal of the SBL loan? First of all, longer repayment terms, as typical terms are 5-7 years. Secondly, approval is much easier than traditional bank financing or other offerings from Commercial Finance companies that lend to the SME sector.
WHO RUNS THE GOVERNMENT GUARANTEED LOAN PROGRAM/ CANADA SMALL BUSINESS FINANCING PROGRAM
It’s necessary to understand the type of loan you are applying for. For a starter, much a surprise to many is that there is no loan from the government. Industry Canada sponsors and administers the program, and it simply guarantees the loans to Canadian chartered banks that provide these loans. Banks, therefore, are more open to providing loans that, in other cases, they would not make!
Note that there is a one-time registration fee of 2% that is due when your loan is approved - this amount can be bundled into your loan and financed. You, of course, can assume that because it is the government of Canada that the csbfl loan interest rate on is very competitive.
The borrower must have revenues of 10 million or less. This is arguably the best loan for many start-ups, and real estate is one of the eligible asset categories that can be financed. Loans can be funded on a fixed rate or variable rate, again re-enforcing that financing under the program loan amount comes with maximum flexibility for borrowers. Even the personal guarantee is limited.
Many franchises are funded under this program, although the franchise fees themselves can't be funded.
WHAT DOES THE GOVERNMENT LOAN FINANCE? WHAT DOES IT NOT FINANCE!
The key to success is knowing what the program DOES NOT finance, and that makes it easier when it comes to an understanding ' real property ' - and that’s working capital and inventory. It also does not refinance current debt. What it does fund is equipment, leasehold improvements and real estate. A residential mortgage CANNOT be financed, and if you are a farming business, there is a separate government loan program for farming businesses.
CONCLUSION
Any finance for small businesses is a challenge - Interested in the Canada small business financing program? If you're looking for a prompt answer, instead of ' maybe yes' or ' maybe no' on small business loans Canada when it comes to government-backed loans in Canada, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help you cut red tape and make govt loans your lifesaver for capital. Let our team be your partner and help you apply for a small business loan for your business needs.
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Stan Prokop
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