YOU’RE LOOKING FOR A GOVERNMENT SBL LOAN!
THE BEST SMALL BUSINESS FINANCING LOAN 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
The availability of government loans in Canada often comes as a surprise to the business owner/entrepreneur. Many clients we talk to initially don't seem to understand how the ' SBL ' loan fits into the small business banking structure in Canada.
Let's examine what we think you will consider a pleasant surprise when it comes to discovering the access and capabilities of this loan. Let's dig in.
THE PERSONAL GUARANTEE
When it comes to starting or building a business in Canada the entrepreneur is often concerned about the aspect of personal guarantees. How does the issue of the ' PG ' (personal guarantee) fit in when it comes to the BIL/CSBF loan program? By the way that's the formal term for this loan program, which is administered by INDUSTRY CANADA in Ottawa.
But back to our ' guarantee ' issue. It's really a ' good news/ bad news' scenario here. The bad news is that a personal guarantee is required under this loan program. The good news: It's only for 25% of your loan amount - with maximum loans under this program being $ 1,000,000.00
WHY IS THE CANADA SMALL BUSINESS LOAN FINANCING PROGRAM SO POPULAR
Why should Small business loans via the federal program have so much appeal to the entrepreneur? They are clearly not for the ' big boys’. It's all about helping small businesses, including restaurants, service companies, manufacturing firms, etc. In fact, the government goes so far as to limit the actual or projected revenues to 10 million dollars when it comes to eligibility and application for the loan. There is a registration fee for the program, which can be bundled into the loan, and interest rates are very attractive as well as flexible repayment.
BANKS ADMINISTER THE LOAN FOR THE GOVERNMENT OF CANADA
One other important technical aspect of the loan is that while the program was created and developed by the government they do not run it on a daily basis. That's the job of Canada's chartered banks and a handful of other miscellaneous financial institutions - but primarily our banks as the key financial institution for the program
HOW TO APPLY FOR A GOVERNMENT LOAN / ELIGIBILITY CRITERIA FOR SMALL BUSINESSES
So it seems that the best place for business owners to go to both learn and apply for the SBL loan is any local bank branch, right? We wish that were the case, but at 7 Park Avenue Financial our many years of experience in guiding clients through the program has shown us that unless you have an experienced advisor guiding you through the process your chances of success are severely diminished.
It's almost humorous, and somewhat ironic that in the U.S., where a similar program exists, the rules state that the entrepreneur must in fact be formally turned down by the bank before they can apply for the SBL loan. As one writer has so well put it ' I've never met an entrepreneur who couldn’t get turned down for a loan by the bank ‘!!
HERE ARE THE 4 KEY REQUIREMENTS FOR A GOVERNMENT LOAN APPROVAL
So what’s required when it comes to applying for government loans with a strong chance of approval success?
The basics are:
Opening balance sheet and cash flow projection,
Personal statement of finances from the owner/ owners (net worth statement),
Executive summary or business plan,
Itemized list of items to be financed.
COMMON MISUNDERSTANDINGS AROUND THE GOVERNMENT SBL LOAN
There's a lot of misinformation, let's call it ' urban legend' around government loans. Here are some examples -
It takes too long to apply/get approved (WRONG - A complete application is usually adjudicated within a few business days)
You need outside collateral as in many other types of business loans (WRONG - No outside collateral is required)
The SBL Loan is similar to a business credit line (WRONG - It's a term loan that finances only two categories of assets - equipment and leasehold improvements)
You can't purchase an existing business with the BIL loan (Wrong - you can!)
CONCLUSION
If you find that you've stumbled upon one of Canada's best kept secrets - the Government Small Business SBL Loan and want to ensure your access to this great program (7000-8000 loans are approved each year for Billions of $ ) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in accessing this great financing program for your business needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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