YOU ARE LOOKING FOR THE SBL GOVERNMENT SMALL BUSINESS LOAN!
CANADA SMALL BUSINESS FINANCING PROGRAM LOANS
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
Suite 301
Oakville, Ontario
Government loans for small businesses serve as invaluable lifelines, fostering growth and sustainability in the entrepreneurial landscape.
Struggling to secure financing for your business? Discover how government loans can provide the capital boost you need to thrive.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer GOVERNMENT LOANS FOR SMALL BUSINESS & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
INTRODUCTION
Canadian small business government financing. There isn’t a day when we don't meet clients who are looking for information on the SBL loan in Canada.
What's worse, in many cases what they do know... well suffice to say... they've got it wrong. We think we can fix that in pretty short order, so let's dig in!
Securing financing can often feel like navigating a maze in the Canadian business landscape -However, for small business owners, a beacon of hope shines through Canadian government-backed loans. This financing solution not only provides much-needed capital but also fosters growth and sustainability for startup and early-stage businesses.
SMEs in Canada fuel innovation, create jobs and drive economic prosperity and overall economic development in Canada . Understanding the avenues available for government loans is key for entrepreneurs aiming to scale their businesses and contribute meaningfully to their communities.
HOW DO YOU FINANCE A STARTUP IN CANADA? ONE WAY IS THE GOVERNMENT OF CANADA SBL LOAN!
There are several methods of business loans and financing a start-up in the SME sector in Canada. Knowing what they are and preparing to address them is what the business owner/manager needs to deal with in planning business expansion activities.
IS BANK FINANCING GUARANTEED? NOT ALWAYS!
In many cases our clients often focus on the bank that they have always dealt with - that comes from the convenience of a past and current relationship more often than not. Just remember though that convenience and a short walking distance are not always guarantors of small businesses being successful with Canadian chartered banks.
UNDERSTANDING TRADITIONAL BANK FINANCING OPTIONS
No Canadian chartered bank is going to bend rules or get involved in marginal situations, so it’s important to focus on a bank and banker that will deliver - many do, but not all. While things like fees, access to online services, etc are important they ultimately depend on getting your company the kind of credit and working capital you need.
SOME BASIC SOURCES OF BUSINESS FUNDING IN CANADA
Common sources of business financing in Canada also include unsecured business lines of credit, business credit cards, supplier financing, equipment and receivable financing.
But is that all? Definitely not, because today we're focusing on the Govt SBL loan and why it just might make sense for your firm.
6 IMPORTANT ASPECTS OF THE CANADA SMALL BUSINESS ' SBL LOAN'
So, here are 6 things you might not know about the BIL (that’s the formal name of the program) small business loan in Canada.
1. The loan has limited personal guarantees (for some reason our clients like that one!) A good credit history is required though.
2. Pricing is very competitive given that many businesses that apply are in start-up or very early years of growing their business, in areas such as improving leased property or an equipment purchase as example.
3. There are only 3 asset categories that can be financed - they are equipment assets (including trucks, etc), Leasehold improvements, and real estate.
4. The term ' government ' is a bit of a misnomer - while the government runs the program and guarantees the loan to banks in actuality all loans are delivered through the chartered banking system. So as much as the Canadian business owner dreams about having a strong day-to-day relationship with the government and its business the reality is that it's business as usual with no direct contact with the government! A nominal registration fee is a part of the program, and this can be bundled into the loan.
In certain cases, an authorized credit union might offer SBL loans.
5. Many clients imagine the application is cumbersome and involved. It isn’t.
You need a business plan, some very normal info on your business - i.e. articles of incorporation, premises lease, etc - Voila... you're off to the races. 7 Park Avenue Financial prepares business plans on SBL loans that meet and exceed the requirements of banks and other commercial lenders - at a fraction of the price of others.
Oh and by the way, while many business people choose to be incorporated you in fact can be a proprietorship or partnership. You should also ensure that your projections or actual revenues do not exceed the 10 Million dollar revenue cap on the loan. That covers a lot of businesses in Canada.
6. Even firms that are start-up in nature can be financed under the Small Business Financing program which provides a maximum loan amount of $1,000,000.00 under certain conditions.
That covers off a lot of business financing needs, and comes with attractive interest rates commensurate with this type of financing and that otherwise might not be achieved with another non-bank commercial lender.
Note that farming businesses are ineligible under the program, although this part of the economy has a special agri-loan program from the government.
KEY TAKEAWAYS
Understanding the eligibility criteria is crucial: Factors include business size, credit score, and industry.
CSBFL (SBL) loans are pivotal: They offer favourable terms and support various business needs.
Knowing the application process is essential: It involves documentation, form completion, and submission to relevant agencies.
Repayment terms are significant: They determine how businesses manage loan obligations over time. Exploring alternatives to government loans is wise: Options like traditional bank loans or commercial alternative financing solutions may be available.
CONCLUSION
So, did you have it wrong on the challenge of small business financing and business growth finance options? Many do.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor with business financing expertise who can assist you with your finance needs via small business government financing - aka the ' SBL '.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What are the benefits of government loans for small businesses?
Government loans offer lower interest rates, longer repayment terms, and often more flexible eligibility criteria compared to traditional financing options.
How can I determine if my small business is eligible for a government loan?
Eligibility criteria vary depending on the specific loan program, but factors such as business size, industry, credit score, and financial history are commonly considered.
What types of government-backed loans are available for small businesses?
The Canada small business loan guarantee offered by the federal government supports small business growth with this loan at a competitive interest rate.
What is the application process like for government loans?
The application process typically involves gathering the necessary documentation, completing an application form, and submitting it to the relevant approved lender - typically a bank or credit union. Loans are structured as term loans with monthly lump sum payments of principal and interest. Any business with less than 10 million of gross annual revenues can qualify.
How can government loans impact the growth of my small business?
Government loans can provide the necessary capital for business expansion, hiring new employees, purchasing equipment, funding and purchasing leasehold improvements/tenant intangible assets, and investing in marketing initiatives, ultimately fueling growth and scalability.
What are the alternatives to government loans for small businesses?
Alternatives to government loans for small businesses include seeking financing from banks, credit unions, and online lenders, or exploring crowdfunding and peer-to-peer lending platforms. Government loans have attractive rates based on 3% above the lender's prime lending rate. A limited unsecured personal guarantee is required under the government loan program- with no other personal collateral of assets required to be pledged. Only business assets financed under the program are secured.
How do government loans differ from traditional bank loans for small businesses?
Government loans via various financial institutions typically offer lower interest rates, longer repayment terms, and more flexible eligibility criteria compared to traditional bank loans for small businesses. Intangible assets can be financed under the loan. Software production equipment costs can be funded under the SR&ED program. Working capital costs and facilities have been a new feature of the program since 2022.
What resources are available for small businesses struggling to repay government loans?
Small businesses struggling to repay government loans can explore options such as loan restructuring or deferrals from the lending financial institution.
