There Are No Design Flaws in the Industry Canada Gov’t Small Business Loan Government Guaranteed Business Loans

OVERVIEW – . Information on ‘ SBL ‘ loans in Canada . New changes in government guaranteed business loans make this method of financing in the SME sector very attractive to business owners and entrepreneurs

Government guaranteed business loans in Canada are unique and are important from a viewpoint of providing financing to small businesses in Canada. (The program defines ‘ small ‘ as any new business with fewer than 5 Million dollars of actual or projected revenue)

Recent changes to the program are intended to ‘ enhance’ the level of attractiveness to the program, eliminating some of the ‘ design flaws’ that have been associated with the program in the past.

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

The successful funding of start up and smaller existing businesses in Canada is a cornerstone of the success of the program – 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.

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

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.

SBL loans in Canada are structured as term loans. Amortizations are generous and are typically in the 3-7 year range. Rates under the program are only 3% over prime rate – which provides an attractive alternative to those firms seeking alternative financing which would come at much higher rates typically.

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

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

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 info on mgmt, an opening balance sheet, and a cash flow projection. (Loans are repaid from cash flow!)

Don’t forget also that you may buy a complete existing business via SBL Canada loans.

When traditional bank or commercial financing is not attainable seek out and speak to a trusted , credible and experienced Canadian business financing advisor with a track record of success
who can assist you in eliminating those ‘ design flaws ‘ of financing to ensure loan success.

Author: Stan Prokop – founder of 7 Park Avenue Financial

Originating business financing for Canadian companies, specializing in working capital, cash flow, and asset based financing. In business 10 years – has completed in excess of $90 Million of financing for Canadian corporations. Core competencies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details:


Greg LaBella
7 Park Avenue Financial
Off.   905 829 2653

Cell   905 302 4171

7 Park Avenue Financial
Canadian Business Financing