8/14/2019 Government Business Loans In Canada . What’s The Big Deal

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Sunday, November 10, 2013

Government Business Loans In Canada . What’s he Bi! "ea#

$our %ersona# Guide o Government Business Loans In Canada

&'()'I(W * In+ormation on !overnment business #oans in Canada. Who runs

this ro!ram and -hat does the Canadian business o-ner entrereneur need to

/no- about the SBL Loan

Government Business Loans in Canada don't really come with a guide and roadmap;and yes we do think the program is a ' big deal'

8/14/2019 Government Business Loans In Canada . What’s The Big Deal

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when it comes to business financing in the Canadian marketplace. Let's dig in.

Industry Canada 

is an agency of the Canadian federal government which is charged with administering theSmall business loan program in Canada. The program provides financial assistance, via a#oan !uarantee to your bank. t's a solid program for start up and small businesses ! andthe program actually defines ' small ' as those firms with real or pro"ected revenues of lessthan # $illion %.

&ne of the true revelations to many client we speak to about the program is that thegovernments only role is as the guarantor of the loan ! institutions such as our Chartered banks run the program on a day to day basis . That's good news and some bad news

as we'll reveal later here.

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uidelines for SBL (that)s the common acronym for the loan* loans are pretty clear.The program financing limit is 30,000.00 and finances only two asset categories !e+uipment and leaseholds.

ates of the program are very attractive given that the credit profile of the borrower issuch that traditional bank financing cannot be achieved. (-ctual rates of the program are/ over the current prime rate*

0orrowers are responsible to guarantee 1#/ of the loan personally; given that manyforms of Canadian business financing re+uire a 233/ owner guarantee or outsidecollateral this is clearly a very attractive component of the S0L loan. -gain, to be clearhere, the bank grants and administers the loan, the government is the guarantor for the bank.

4reviously we noted that there is some 5bad news) around Canadian chartered banks

administering the program. n our e6perience many bankers are either unfamiliar with the program, and if they are they view the transaction as a 5make work) pro"ect. &urrecommendation7 8ind a banker or business financing advisor that can fast track the program with a knowledgeable banker. 4roblem solved9

$any clients we meet initially have a strong perception that the application process forgovernment business loans in Canada is cumbersome. :veryone has an opinion, but westrongly feel that's not the case. The only key components of the loan application are a personal net worth statement , a business plan or e6ecutive summary, a premises lease for

8/14/2019 Government Business Loans In Canada . What’s The Big Deal

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your business location, and a list of items you wish to finance that reference the cost,mfrsupplier, etc. Surely that can't be construed as cumbersome9

0y the way, it)s important that your business plane6ec. Summary include a good 4ash

+#o- statement that shows how the loan is going to be repaid. -lso, business people

should understand that it is highly desirable to have some relevant business e6periencewithin the industry that you are in. Start ups take note9

Typical loan terms for the government loan are #!< years ! -ny shorter term than that isalso appropriate. The government charges a one time 1/ fee for the loan and we wouldadd that this is often simply built into the overall financingmonthly payment. =hen properly structured there are no prepayment issues, which is another attractive part of the program; $any other types of business loans and leases penali>e the borrower forrepaying early. The S0L program does not do that.

=hen you recap the overall bene+its o+ the SBL #oan it's clear you might now agree with

us that the program is in fact a ' big deal '. Seek out and speak to a trusted, credible ande6perienced Canadian business financing advisor who can be your personal guide toovernment business loans in Canada.

Stan %ro/o ! founder of 5 %ar/ 6venue 7inan4ia#

htt8---.5ar/avenue+inan4ia#.4om

&riginating business financing for Canadian companies , speciali>ing in working capital,cash flow, asset based financing . n business 23 years ! has completed in e6cess of ?3$illion %% of financing for Canadian corporations . Core competancies includereceivables financing, asset based lending, working capital, e+uipment finance, franchisefinance and ta6 credit financing.nfo re@ Canadian business financing A contact details @

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5 %ar/ 6venue 7inan4ia# 9 Canadian Government Business Loans (:ertise  

;ave 6 <uestion Comment &n &ur B#o! &r Canadian Business 7inan4in!6#ternatives =

C&N6C8

5 %ar/ 6venue 7inan4ia#

South Sheridan :6ecutive Centre1B23 South Sheridan =aySuite 32&akville, &ntarioLD <D?%hone E B3# ?1B 1#

(mai# E sprokopF<parkavenuefinancial.com

Stan %ro/o