Help from where we least expect it. We can’t speak for you but we’ve always appreciated assistance in business, especially when it comes from sources you least expect. We’re talking about the Canadian government business loan, in our opinion its the best or 2nd best of gov programs that work.
We’ve always loved the line ‘ Hi, we’re from the government and we’re here to help … which is why SBL Loans in our opinion are the real world example of a phrase that is often associated with negavity. Government ‘ … Banking … many small and medium sized business owners cringe when they contemplate those words. Not today, though.
The government business loan in Canada is a primary offering via INDUSTRY CANADA in Ottawa. It offers SBL loans up to $ 500,000.00 for the purpose of financing equipment assets, leaseholds, real estate, software, etc. In actuality the 500k limit is specifically related to real estate, while other asset categories are capped at $ 350,000.00.
The program provides a long term fixed or variable rate financing to businesses looking to start, expand, and grow!
Misinformation abounds around the program; we’re always surprised at the amount or lack of solid understanding and facts around gov programs such as this.
One of those main misconceptions revolves around who the lender is. We can at least forgive our clients who misunderstand the fact that while this is a government sponsored and guaranteed loan, in actuality the actual day to day dealings are in the private sector.
One of the greatest benefits of the program is something we have alluded to already, its that SBL loans fit perfectly for a number of company categories, including start ups, growing firms, and also franchises which make up a huge portion of the borrowing segment of this program.
As we have hinted, the program is run at the local level, local meaning wherever your firm is, because the program is underwritten and funded by your local Canadian chartered bank. By the way, one of the challenges of the program, as ironic as it may seem, is to find a banker that understands and supports the program in a positive manner. That means of course facilitating your application and recommending you for approval!
A common complaint we hear from clients on anything to do with ‘ gov programs’ or banks in general is that ‘ forms and documents’ are a challenge. Let’s be realistic. All business financing requires a forms and app’s, and we dont necessarily subscribe to the fact that SBL loans are any different.
Some key basic requirements are a reasonable personal credit history for the busines owner/owners, a business plan and cash flow, and some historical financial statements if you’re already in business. Very basic things such as your articles of incorporation are also required. Oh, and by the way, we strongly encourage clients to pay their taxes as you can expect to get a government loan when you owe them for back personal taxes already, right?!
The Canadian government business loan funds billions of dollars of small business loans in Canada. It’s a working example of Gov. Programs that work. Speak to a trusted, credible and experienced Canadian business financing advisor today on achieving solid finance rates and terms you otherwise could not achieve. Bottom line? Get with the program!!