YOUR COMPANY IS LOOKING FOR AN GOVERNMENT SMALL BUSINESS LOAN FUNDING!
FIND A LOAN FOR YOUR SMALL BUSINESS
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Financing & Cash flow are the biggest issues facing businesses today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
EXPLORING THE CANADA SMALL BUSINESS FINANCING PROGRAM
Could our question on the Canadian government small business loan (commonly called 'The SBL‘) be any more simple? Is this specialized Canadian lending program right for your company? If you are a Canadian business with fewer than 10 Million dollars in actual or projected gross annual revenues we categorically think it is - as always though we'll let clients decide for themselves!
GET UP TO $ 1,000,000.00 IN LOAN SUPPORT
Businesses often need capital to invest in new equipment, open a new office, expand their operations or simply when starting out and trying to make a name for themselves- With Canada becoming a real haven for entrepreneurs, more and more are starting their own businesses in Canada - Entrepreneurs are launching start-ups in Canada, despite the lack of initial capital.
Business loan financing in Canada varies greatly. Structures, documentation on the loan, and the guarantees or collateral required vary widely depending on the financial institution, and we can assure you with certainty that’s an understatement!
GOVERNMENT BACKED LOANS FOR THE SUPPORT OF YOUR BUSINESS
The Canadian government, specifically the good folks at Industry Canada (they sure seem nice when they call us at least ...?) sponsor this loan program. The technical name of the program is BIL/CSBF... but we're never one to get too technical. Note also for farming businesses that there is a separate program for that sector of the economy.
This type of financing in general serves the lower end of the Canadian business financing scene and does at a great job of financing businesses in Canada that otherwise might not be able to qualify. And do you know what the difference is? The rates, terms, and structures of this program, compared to almost all other types of financing are... are you ready? Better!
What are some of the reasons that we can say with assurance that this financing is of the best in Canada, whether you are a start-up, a franchise, or an established company with sales and profits.
What most Canadian business owners and financial managers don’t immediately realize is that while everyone thinks of this as a government loan the program is actually run on a daily business by Canada’s chartered banks. The challenge in many cases that we've seen with clients is they are unable to find a banker as bullish and excited about the program as we are. (We guess filling out forms is somehow not appealing to all...?)
A typical amortization term under the loan is 3 -5 years under the term loan structure - coming with competitive and attractive interest rates that small or start ups in business can rarely achieve.
Why the program should appeal to banks more, in our opinion, is simply the fact that if a loan is unable to be repaid the government reimburses the bank for 90% of your firm’s loan. So banks are therefore only partially at risk, and that risk is often taken care of nicely by a combination of your 25% personal guarantee, as well as security over the assets financed.
That’s why we are always surprised that the appetite for this type of financing is rarely as large as we think it should be. The program is in place all the time, and is never under any form of suspension, as has happened in the U.S. on occasion.
WHO IS ELIGIBLE?
So why don’t more businesses use the program? We can only offer up a few basic reasons - they don’t know about it, they find filling out forms cumbersome (we’ll fill out a form all day to get the $350,000 for any one borrower that is in fact the loan amount maximum !!) or they don’t qualify. Many smaller businesses resort from everything to business credit cards and short-term working capital loans to augment their cash needs. The government business loan has a nominal registration fee attached to the loan if your funding is approved - and this amount can be financed within the loan itself.
But are those qualifications stringent? Hardly - Business owners need only to have a reasonable personal credit history, they must be willing to guarantee a percentage of the loan, and the financing capabilities of the loan are limited to eligible purchases for the following criteria - equipment loans for assets and technology, purchasing leasehold improvements and financing them on your leased property, and real estate.
Franchise financing can be a challenge in Canada, and the program finances hundreds of franchises every year, recent legislation also allows the franchisee fees themselves to be financed!
We're not telling you to get a government small business loan... We're simply asking you to consider it as one solid mechanism for obtaining the financing you need when other alternatives might not be available. By the way, lump sum payments without penalty can be made to reduce the loan. Talk about solid financial support. Also, no personal assets are taken or collateralized for the loan!!
Close to 8000 of your competitors and peers in Canada used the program last year. Maybe you should too? Talk to the 7 Park Avenue Financial team about which financial institutions work best for your financing needs and how we help with your loan application and business plan. Banks and credit unions have strict requirements when it comes to lending money, but if you're denied these loans there are other options that the7 Park Avenue Financial team can identify.
Canada has become a great place for starting up new businesses. The Canada Small Business Financing Program helps start ups in all types of Canadian small businesses get loans and share the risk with lenders through Innovation Science and Economic Development Canada.Small business loans are available for Canadian businesses with annual revenue of under $10 million.
Speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor on why SBL financing just might be right for your firm.
FAQ: FREQUENTLY ASKED QUESTIONS / MORE INFORMATION
What is the Canada Small Business Financing Program
The Canada Small Business Financing Loan offers loans for Canadian businesses to help them grow. Government-guaranteed loans are offered to small businesses in Canada for up to $1 million.The CSBFL is a government-sponsored loan for small businesses in Canada.
Click here for the business finance track record of 7 Park Avenue Financial