7 Ways To Get On Track With The Canadian SBL Government Loan Program Government Loans For Business

Information on government loans for business in Canada. SBL Canada loans provide an effective financing vehicle for start up and businesses that have revenues less than 5 Million dollars

Government loans for business in Canada are getting a ‘ reboot’ via some dramatic changes to the program. So SBL Canada (‘small business loan’) financing requires some attention from the owner / entrepreneur seeking this type of financing. We’re covering off 7 ‘must knows’. Let’s dig in.

We’ll step back a minute and recap the landscape for this type of finance. The program specifically is mandated under ‘ INDUSTRY CANADA’ and while the loan has ‘ the feel ‘ of government financing the reality is that the actual loan is approved, funded , and administered by our Canadian chartered banks . The two key asset categories are ‘ fixed assets’, i.e. equipment and real estate, as well as ‘ leaseholds’.

What the business owner needs to understand therefore is what the program does not financing, and that is items such as inventory, working capital, intangibles, etc.

While the loan assumes you will have some money invested in the business typically this amount is much less than you would require in normal borrowing circumstance.

Simply speaking the overall loan package must reflect some reasonable chances of the loans being repaid. That typically is achieved by a strong business plan that reflects some good owner business experience.

The true beauty of the program also lies in the fact that no outside collateral is required under this method of financing. By the way the current financing limit for the program is $350,000.00 although recent changes suggest higher financing amounts can be approved under the right criteria. New or existing business must have annual real or projected revenues under 5 Million $.

If there’s one problem we have noted specifically with the program it’s that each of the banks take a different stab at interpreting how they will run the program. While uniformity is desired, unfortunately it doesn’t exist. That’s our story and we’re sticking to it!

For true success in the program it’s all about your loan package, and it’s absolutely not as onerous as you think. In fact with the help of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success that package can be put together in a couple days. Key elements of the package include owner bio, and being able to demonstrate a good personal credit history. Entrepreneurs who have been credit challenged in the past will have a major problem in getting approved.

The actual business plan or executive summary should profile the business and include a solid cash flow plan and revenue forecast. Supplemental info to help the loan get approved might be copies of any client contracts, your articles of incorporation (proprietorships are ok also), and a copy of your commercial premises lease. You also clearly want to demonstrate the use of the funds, which is typically done via invoices or quotes from your vendors/suppliers.

There you have it. A quick recap required?
1. Understand what the program is and is not
2. Ensure you know what the program actually finances
3. Know that 100% financing is not available under the SBL, and that some owner equity will be required
4. Have a business plan or exec. Summary that highlights your loan request
5. Understand the application process
6. Consider using an experienced business advisor who can fast track your loan
7. Be able to demonstrate your experience and personal financial history

Getting ‘ on track’ with SBL loans in Canada is a solid way to start and grow a business.

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