What’s So Top Secret About Gov’t Business Loans ?

OVERVIEW – Information on government loans in Canada . How does the business owner and entrepreneur secure a Small Business Loan – aka the ‘ SBL’

Government Loans in Canada? The Canada Small Business loan program is an ongoing major initiative by the Canadian Federal government to provide capital financing to new and existing businesses that meet the criteria of the program.

The program is very popular in Canada, primarily because it a business loan that the business owner may not have been able to achieve elsewhere.

Many business owners and financial managers either aren’t aware of the program, or, as is more often the case, don’t understand the requirements of the program and how to ensure a proper approval in a timely manner. Naturally, rightfully or wrongfully so, there exists a perception that any government type funding program is extremely paperwork and administratively burdening to the business.

There are several key basics that allow a business to ensure that they are in fact qualified to pursue the program. Those basics are as follows:

1. The company must be a private corporation – public firms are not eligible

2. The company must be under 5 Million dollars in revenue

3. The loan must ‘ flow through’ a registered administrator of the program – In Canada this is typically a chartered bank – this is one of the key perceptions of the program, in that the banks ‘ administer ‘ the program, but they don’t own it

4. Only three major asset classes are covered under financing in the program – they are as follows: Equipment, Leaseholds, and Real Estate

The government, as we have shown, doesn’t lend the funds, but it guarantees the funds to the bank

Almost every type of business in Canada can qualify for the loan program.The challenge of course, as always, is ‘ How does my firm get approved?!’

If a business owner or manager feels they are not capable of providing a proper submission to the bank it is highly recommended that they used the services of a trusted financing advisor or intermediary.

We cannot overemphasis that the key to dealing with the government and the bank is that it is critically important to have all the necessary paperwork in a properly submitted and, hopefully, professional package.

What does that ‘ paperwork ‘ include? Companies should ensure the package reflects the current financial position of the company, ( START UPS WELCOME !) a proper business plan and or executive summary, and miscellaneous personal data surrounding the bank and government requirements – i.e. statement of net worth, proof of no tax arrears, etc.

Most importantly is the need to position a proper purpose of the loan re dollars, timing, use of funds, etc

Most business owners don’t realize the true benefit of doing everything once, the right way! In lending and loan approval that is important. You can re- submit and renegotiate, but that is not an optimal strategy for business financing success.

In summary, the bottom line is ‘ do it once, right ‘. Looking for expertise and assistance? Seek a trusted, credible and experienced business financing advisor with credentials in this area.

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:

7 Park Avenue Financial = Sale Leaseback Financing


7 Park Avenue Financial
905 302 4171
Email = greg@7parkavenuefinancial.com