YOUR COMPANY IS LOOKING FOR A GOVERNMENT SBL START UP LOAN!
CANADIAN GOVERNMENT LOANS / GOVERNMENT LOANS SMALL BUSINESS
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
A government loan for small business start up? Nothing seems to bring a look of rejection, fear and confusion on some of our client’s faces when we discuss this method of financing their business. That can range from start-up financing to an established business with revenues fewer than 5 Million dollars. (5 M$ is the cap on revenues for this loan)
So does it all have to be about that confusion and fear of not being approved? We don’t think so if you've got the basics tied down, which is not as hard as you think. Let's explain and let's dig in!
WHO RUNS AND SPONSORS THE CANADIAN SMALL BUSINESS FINANCING PROGRAM?
It's important to understand the mandate and nature of this type of financing. While the common term is ' government loan' in fact you never deal with the government. So how's that for clearing up some confusion right away. The program is sponsored and administered by INDUSTRY CANADA, those great folks in Ottawa. But here's the rub! You never meet or speak to those folks, as SBL loans (That’s the nickname for the program) are actually managed and funded by the Canadian banking system. It's our chartered banks that are managing the actual funding and daily mechanics of your loan. You can pick your financial institutions, business credit unions included !
WHAT IS THE GOVERNMENTS ROLE IN THE GOVT GUARANTEED LOAN PROGRAM
So where does the government fit in? Simply that they guarantee the loans, or a large part of them, to the banks. So if you are lucky enough to find a banker that has the knowledge and time to process your SBL loan ( yes, that really is a challenge believe it or not ) you're on the track for some great financing, whether you're starting a business, buying a franchise, or looking for financing for equipment and leaseholds for your business.
A SUMMARY OF THE CANADA SMALL BUSINESS FINANCING LOAN - AKA THE ' SBL'!
Is there a quick way to summarize the major benefits of the program? We simply advise clients as follows:
Loan rates of 3% over prime rate in Canada
25% only personal guarantee (tries and get that anywhere else)
5-7 year terms
Repayable without penalty
Assets financed include equipment and leaseholds
It doesn't get any more basic than that!
Over the years there have been some nuances in the program, but the reality is that billions of dollars are advanced under the Government loan for small businesses every year, to thousands of firms in Canada just like yours.
In fact, it might come as a surprise that the only recent major change was several years ago when the loan cap was increased to 1,000,000.00 - with some conditions around the new amount. So it was actually a great change when it comes to Canadian business financing.
So what does the SBL loan require in the form of an application and process? It's more basic than you think. It’s a business plan/exec summary, a description of the assets you are going to finance, and personal info on yourself regarding your business experience and personal financial affairs. You categorically do have to have a good personal credit history - this is not a ' bad credit financing program '!
PRIVATE COMPANIES ONLY - NO PUBLIC COMPANY NEED APPLY!
Oh, by the way, your company must be private, not public (not a big challenge there, right?!) and you require a business location with a premises lease.
CONCLUSION
If you're looking for a prescription for success in Government loans for small business in Canada seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs. You just might find that he or she has the banking relationships and expertise required to get you the funding you need under Canada’s, bar none, the best program for small business.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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