YOUR COMPANY IS LOOKING FOR GOVERNMENT SMALL BUSINESS IMPROVEMENT LOAN FUNDING!
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Many Canadian business owners are often guided to the Government Small Business Loan program in Canada by people such as their friends, advisors, bankers, etc. But boy, have we got stories for you about some of the misinformation and frustration many clients have on what is fundamentally a great business financing program in Canada.
Our mission and goal? Clarify some of the misinformation and help you understand what you need to know to take advantage of this great Canadian business financing advantage.
Part of the success of the government small business improvement loan surely is who the program is aimed at. In Canada, the program focuses on everyone from a start-up to companies under the five million dollar mark in sales revenue. Naturally, if you are a start-up, for either your own business or a franchise it makes sense that you might not be able to qualify for what the finance folks call 'traditional' financing, in other words 'the bank'!
It has always seemed to us a bit ironic that it’s actually the banks that provide the SBL loans in Canada - however, they do that because they have a guarantee from Industry Canada and the federal government with respect to any financial losses they might incur on the loan. While that guarantee doesn’t cover 100% of the loan let us assure you it’s a very significant amount!
So, as we said the banks in Canada (as well as some other miscellaneous institutions, such as some credit unions, etc.) are what some folks term as the 'preferred lenders' of the program.
Limits. Let’s talk about those loan limits. Canadian SBL loans are capped at $ 500,000 for real estate and $ 350,000 for equipment and leaseholds - which includes computer software by the way.
Rates under the program are 3% over the current prime rate, and the bank collects a one-time 2% administration fee also. So contrary to what many business owners think, rates are not negotiable on a business improvement loan (B I L) - they are fixed under the program.
Where things often fall apart on an SBL/BIL loan is due to the fact, we think, that the government allows each bank to interpret their own credit criteria on a Government small business loan. This causes no end of frustration for our clients who are often unprepared for this individual interpretation of SBL Loans... after all; it’s a 'program' is it not?
Most Canadian business owners and financial managers are keenly aware that ' pre-paying ' a business loan without penalty is virtually impossible in Canadian business financing. However, the good news is that SBL government small business improvement financing is totally repayable, at any time, without penalty!
In sports it's all about knowing how to play the game... that inside edge all players are looking for. Here's a tip - you should be looking at the Canadian business financing process in the same manner... winging it should not be part of your strategy. In future writings, we will cover off more info on how to win at the government business loan game. And by the way, it’s not a game!
Speak to a trusted, credible and experienced Canadian business financing advisor on how to successfully apply for and obtain one of the best financing resources in Canadian business - the SBL / BIL loan.
government small business improvement loan loans
