YOU’RE LOOKING FOR A GOVERNMENT SMALL BUSINESS
LOAN IN CANADA!
USING THE CANADA SMALL BUSINESS FINANCING PROGRAM IN CANADA
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
Government business loans are a constant topic issue we discuss with clients who are wondering how to get a govt loan in Canada.
THERE ARE 6 KEYS USES OF THE GOVERNMENT BUSINESS LOAN PROGRAM IN CANADA
In reality, there are numerous, 6, in fact, uses for this type of financing, and despite the frustration, we hear about from small businesses and entrepreneurs you would be surprised at how straightforward the program is - if you have the right information and help. Let's dig in.
WHAT IS THE GOVERNMENT ROLE IN THE PROGRAM - YOU'LL BE SURPRISED!
Many business owners/ managers can be forgiven for failing to understand the govt role in this program. They are in fact not the' direct lender' per se; they are simply the originator and administrator of the program, under the auspices of INDUSTRY CANADA.
CANADIAN BANKS AND CREDIT UNIONS ADMINISTER THE GOVERNMENT OF CANADA GUARANTEED LOAN
So what financial institutions in fact ' lends' your firm the money? No surprise it's our Canadian chartered banks - your goal is to find a local bank or banker that supports and understands the program. In the school of experience, we've found the tuition in finding those bankers somewhat expensive! Your best bet is often to seek the expertise and skills of a trusted, credible and experienced Canadian business financing advisor who can assist you in fast-tracking an approval if you meet the straightforward guidelines for the financial institutions who adminsiter the program.
HOW YOU CAN BENEFIT FROM THE GOVERNMENT SMALL BUSINESS LOAN
So about those uses for government business loans in Canada- who are the eligible businesses? First of all many will be surprised that you can utilize the loan (commonly called an 'SBL' to acquire an entire business. It's a straightforward process - all you will need is your offer to purchase, a business plan, and the existing financial statements of the business you are acquiring. The loan will finance (to a maximum of 1 Million $ ) all assets and leaseholds of the company you are looking to acquire.
YOU CAN FINANCE FRANCHISES UNDER THE GOVERNMENT CSBF LOAN PROGRAM
Another solid, in fact very solid, use of the program is to acquire a franchise. Other than dealing with very specialized franchise finance firms government business loans are a great and popular way to finance a franchise.
REAL ESTATE CAN BE FUNDED
Looking to acquire commercial real estate for your business. In many cases, this involves owning the property your business occupies. SBL loans finance real estate up to $1.000,000.00 on amortizations of 7-10 years. Although we don't often see this type of deal as opposed to a commercial mortgage. you should at least know it’s available!
Starting up? Many ' ' start-up ' businesses in Canada have a lot, and we mean a lot of problem sourcing financing. The govt SBL loan program finances startups and can be a great initial vehicle to get your business project or idea going. Financing benefits under the program even match the financing the big boys themselves can't even get - i.e. repayment without a penalty, limited personal owner guarantees, etc.
LOOKING FOR INFORMATION ON HOW TO BUY A BUSINESS IN CANADA - GOVERNMENT LOANS WORK!
When it comes to financing assets many Canadian businesses gravitate to equipment financing in Canada for fixed asset acquisition. However, government business loans also a solid mechanism to acquire equipment under generous amortizations and good rates.
BENEFITS OF THE GOVERNMENT CSBFL PROGRAM
The SBL program has solid benefits and terms. Those terms include rates of only 3% over prime, limited personal guarantees, long amortizations, no-prepayment penalties, and the ability to access business credit that you might not be able to achieve directly through banks or commercial finance firms. The government loan is not interest free but the interest rates are very competitive .
THE LOAN IS NOT A CASH LOAN / WORKING CAPITAL LOAN / LINE OF CREDIT
But didn’t we say there were 5 1/2 things you might not know? What's that other half about? It's our way of reminding clients that the loan is not used for cash loans or working capital lines of credit so don’t make that mistake when you require cash flow financing.
CONCLUSION
Today’s takeaway? Pretty simple - when you are looking at how to get a govt loan that helps businesses whether its sole proprietors or incorporated businesses and partnerships, seek out the right expertise to maximize full benefits and use of this method of financing a Canadian business and stimulate the sale of your products and services.
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Stan Prokop
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