A Government Loan For Small Business? From Start Up Financing To New Finance Needs

Recognize These Symptoms? Fear ? Rejection? Here Your RX for Successful Business Financing


OVERVIEW – . Information on the government loan for small business . The ‘ SBL LOAN’ works whether you are a start up or an established business ! Here’s why and how!



A government loan for small business . Nothing seems to bring a look of rejection, fear and confusion on some of our client’s faces when we discuss this method of financing their business. That can range from start up financing to an established business with revenues fewer than 5 Million dollars. (5 M$ is the cap on revenues for this loan)

So does it all have to be about that confusion and fear of not being approved? We don’t think so if you've got the basics tied down, which is not as hard as you think. Let's explain and let's dig in!

It's important to understand the mandate and nature of this type of financing. While the common term is ' government loan' in fact you never deal with the government. So how's that for clearing up some confusion right away. The program is sponsored and administered by INDUSTRY CANADA, those great folks in Ottawa. But here's the rub! You never meet or speak to those folks, as SBL loans (That’s the nickname for the program) are actually managed and funded by the Canadian banking system. It's our chartered banks that are managing the actual funding and daily mechanics of your loan.

So where does the government fit in? Simply that they guarantee the loans, or a large part of them, to the banks. So if you are lucky enough to find a banker that has the knowledge and time to process your SBL loan ( yes, that really is a challenge believe it or not ) you're on the track for some great financing, whether you're starting a business, buying a franchise, or looking for financing for equipment and leaseholds for your business .

Is there a quick way to summarize the major benefits of the program? We simply advise clients as follows:

Loan rates of 3% over prime rate in Canada
25% only personal guarantee (tries and get that anywhere else)
5-7 year terms
Repayable without penalty
Assets financed include equipment and leaseholds

It doesn't get anymore basic than that!


Over the years there have been some nuances in the program, but the reality is that billions of dollars are advanced under the Government loan for small business every year, to thousands of firms in Canada just like yours.
In fact it might come as a surprise that the only recent major change was several years ago when the loan cap was increased to 350k from 250k. So it was actually a great change when it comes to Canadian business financing.

So what does the SBL loan require in the form of an application and process. It's more basic than you think. It’s a business plan/exec summary, description of the assets you are going to finance, and personal info on yourself re your business experience and personal financial affairs. You categorically do have to have a good personal credit history - this is not a ' bad credit financing program '!

Oh, by the way, your company must be private, not public (not a big challenge there, right?!) and you require a business location with a premises lease.

If you're looking for a prescription for success in Government loans for small business in Canada seek out and speak to a trusted, credible and experienced Canadian business financing advisorwho can assist you with your financing needs. You just might find that he or she has the banking relationships and expertise required to get you the funding you need under Canada’s, bar none, best program for small business.


7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE


Stan Prokop - founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.com Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


GOVERNMENT LOAN FOR SMALL BUSINESS / START UP FINANCING




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com












Stan Prokop