OVERVIEW – Information on federal government loans in Canada . SBL government lenders can help you achieve various business financing and acquisition goals – here’s how
Federal government loans in Canada are truly an ‘ all purpose ‘financing solution for various types of finance needs. The ‘ SBL ‘ (small business loan ‘) from government lenders have a number of great uses – we’re going to cover off 4 of them. Let’s dig in.
Different objectives in Canadian business financing more often than not requires different solutions – so that typically means different rules around what works, what doesnt and what’s required. But uniquely to the SBL loan it has the ability to ‘ fix ‘ at least 4 different financing needs.
Let’s recap those 4 uses of the program – They are:
Purchase an existing business
Start a business
Buy an existing or new franchise
Finance leasehold improvements to your premises
We’ve spoken of ‘ government lenders ‘ in the program. In reality there is just one government lender and that’s our Canadian banks. They are essentially the ‘delivery vehicle ‘ for your SBL financing needs. There’s a little irony here in that the same loan you COULD NOT get from a Canadian chartered bank is suddenly … AVAILABLE!
The simple reason for that is that the government, via INDUSTRY CANADA essentially guarantees the majority of the loan to our Canadian banks. In recent years that has meant that every type of business in Canada, in almost all industries has received billions of dollars of loans annually – recent stats are that about 8000 companies apply and are approved under the program.
At the end of the day it’s simply an ‘ incentive ‘ for our banks to lend to the SME sector. One technical point is that if your firm has either over 5 Million dollars of actual or projected (in case of a start up) sales revenue you are disqualified for the program. Luckily that 5 Million $ threshold still covers tens of thousands of firms that can still access the loan. In fact govt stats tell us it’s these firms that are powering a huge part of the economy.
If you’re serious about getting approved for the right amount and in a timely manner it’s necessary to give the banker and the program what they want. The good news is that list is not that large.
Essential elements of a solid loan package include:
Business plan / cash flow
List of assets /items to be financed/acquired
Personal financial info on the owner (reasonable personal credit is a must)
A Premises lease identifying your business location
If you feel you’re unable to access the right banker or put together a proper package consider seeking out and speaking to a trusted, credible and experienced Canadian business FinancingAdvisor with a track record of success who can fast track you to federal government loans success.
Author: Stan Prokop – 7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN SBL GOVERNMENT LOAN EXPERTISE
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