Government Guaranteed Business Loans SBL Canada| 7 Park Avenue Financial

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Government Guaranteed Business Loans:  Comparing SBL Canada Loans To Traditional Bank Financing In Canada
There Are No Design Flaws in the Industry Canada Government Small Business Loan



YOUR COMPANY IS LOOKING FOR  A GOVERNMENT GUARANTEED  LOAN! 

ACCESSING THE GOVERNMENT OF CANADA SMALL BUSINESS FINANCING PROGRAM

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

 

bank loan for small business

Government guaranteed business loans in Canada are unique and are important from providing financing to small businesses in Canada.  (The program defines  ' small ' as any new business with fewer than 10 Million dollars of actual or projected revenue)

 

UPDATES ON SOME CHANGES TO THE PROGRAM

 

Recent changes to the small business financing loan program are intended to ' enhance' the program's level of attractiveness, eliminating some of the ' design flaws' associated with the program in the past.

 

WHO SPONSORS AND ADMINISTERS GOVERNMENT LOANS IN CANDA

Financial assistance via an ' SBL Canada '   financing comes under the jurisdiction of INDUSTRY CANADA.  Somewhat misunderstood by many potential borrowers is that the program is' delivered ' by our Canadian chartered banks. 

 

WHO USES GOVERNMENT LOANS IN CANADA

 

The successful funding of start-up and smaller existing businesses in Canada is a cornerstone of the program's success - with anywhere up to approximately 8000 businesses being funded annually.  The government, via the Industry Canada ' CSBF ' program, is a guarantor of a large part of the financing you receive under the loan proceeds. The maximum loan amount has been increased to 1 Million dollars, although assets and leasehold improvements can be financing to a maximum of 350k.

 

SBL'S ARE NOT A CASH FLOW OR WORKING CAPITAL LOAN

 

Contrary to popular belief, the loan is not a cash flow loan, and the asset categories as already mentioned are equipment, leaseholds, and real estate.

 

FARM BUSINESSES HAVE AN ALTERNATIVE GOVERNMENT LOAN PROGRAM

Farming businesses in Canada have a separate version of the program particularly suited to the agriculture industry.

 

 

small business bank loan                   bank loans for small business

ONE CRITICAL KEY TO BEING SUCCESSFUL IN GOVERNMENT LOANS!

A part of the challenge for being successfully funded under the program is that our banks tend to interpret the loan guidelines differently. So finding an experienced banker or Canadian business financing advisor is key to success.

 

 

WHAT DO SBL LOANS FINANCE?

 

Commercial loans in Canada for start-up or simply smaller businesses are often difficult to obtain. So the ability to finance equipment, leaseholds, computers, software, and even real estate under the program is a tremendous boon to Canadian borrowers in the SME (small to medium enterprise) market.

 

PROGRAM RATES AND TERMS AND CONDITIONS FOR GOVERNMENT LOANS

SBL loans in Canada are structured as term loans. Amortizations are generous and are typically in the   3-7 year range. Interest  Rates under the program are only 3% over prime rate, which provides an attractive interest rate alternative to those firms seeking alternative financing, which would typically come at much higher rates. There is a registration fee for this business loan, and many start ups are well suited to apply for this type of financing.

 

 

While government-guaranteed loans (“SBL " ) are typically used for legally incorporated companies, it is in fact also available for registered partnerships and proprietorships.

 

RISK SHARING BENEFITS THE BORROWER

 

Given that the bank and the government share the loan risk, the program is also very attractive to entrants into the Canadian franchise industry.

 

HOW TO QUALIFY FOR GOVERNMENT LOANS IN CANADA

 

Positively approaching the loan submission helps guarantee financing success. You or your advisor should ensure a business plan or exec. summary is available, along with information on mgmt, an opening balance sheet, and a cash flow projection. (Loans are repaid from cash flow!) 7 Park Avenue Financial prepares business plans that meet and exceed bank and lender requirements.

The business owner's credit history and personal credit score must also be satisfactory when qualifying for the program.

 

CAN YOU BUY A BUSINESS WITH THE GOVERNMENT SBL LOAN?

 

Don't also forget that you may buy a complete existing business via SBL Canada loans. Many franchise financing loans are done under the program - which is a huge benefit for new franchisees.

 

bank loan small business

CONCLUSION

Small business financing is a challenge - no argument there! When traditional bank or commercial financing is not attainable, seek out and speak to a  trusted, credible and experienced Canadian business financing advisor who can help you eliminate those ' design flaws ' of financing to ensure loan success.

 

Click here for the business finance track record of 7 Park Avenue Financial





7 Park Avenue Financial/Copyright/2021/Rights Reserved

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2021

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil