OVERVIEW – Information on small business government loans in Canada . A financing and funding option for your consideration
Small business government loans in Canada are a solid consideration for business owners/entrepreneurs. They typically best suit start ups, new firms, small firms, and growing firms in the SME (small to medium enterprise) sector. Why and, more importantly how does the government provide this financing, and are you eligible? Let’s dig in.
Although understood by some, but not all it’s Canadian banks that actually are the delivery vehicle for small business loan financing. How then is the government involved, ask our clients? The answer – they guarantee a large part of the loan on your behalf, to the banks. A solid idea!
What we have observed over the years is that while the program is cast in stone as far as the govt is concerned the ‘ real world ‘ (that’s the one we toil in daily!) tells us that some practices and requirements certainly vary between our different chartered banks. That’s a hint by the way that you might benefit from an experienced advisor in this program!
So how do you receive the actual funds and what can they be used for? In Canada the program covers equipment, leasehold improvements, and even real estate. Note therefore – this is not a cash flow loan or working capital facility. The loan cannot be used for inventory purchases or consolidation of existing debt. That’s important to know.
The loan is always structured as a term loan with fixed monthly payments, and by the way loan prepayment privileges are very generous.
Now that we have established who you are in fact approaching for govt loan financing it’s critical to understand the information that will satisfy the criteria of the loan, often called the ‘ SBL ‘ loans. You’re well armed if you can deliver on the following:
Cash Flow forecast
Information on owner business background and personal financial credit history
Information on what you wish to finance – typically in the form of quotes from equipment suppliers or contractors in the case of leaseholds
Larger businesses unfortunately cannot apply, but the current threshold is 10M and under in annual revenue. We’re quite sure that covers thousands of firms looking for funding… Typical loan terms are between 3 and 7 years. (The program actually specifies an amortization term of ten years to qualified candidates)
Cost ? Rates are very competitive and can be fixed or floating based upon the needs of the borrower.
If this type of business funding makes sense for your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can make the funding under the Govt guaranteed business loan possible .
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 905 302 4171
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
7 Park Avenue Financial
Canadian Business Financing