How SBL Government Loans Work . Here’s A Hint . It’s Not Vegas But It Is The SME Canada Business Financing Alternative

Decoding The SBL Business Loan In Canada
SBL loans make total sense




OVERVIEW – Information on government loans in Canda. When SME Canada is searching for a business financing alternative SBL loans make total sense

Business financing in Canada, perhaps unbelievable to some, can actually be achieved via government loans. SME financing can benefit from a great tool. The Canada Small Business Loan. How does this loan work? .. and unlike Vegas odds,

it’s a sure thing if you meet certain clear criteria. Let's dig in.








The challenge of new and smaller businesses in the SME sector in Canada revolves around the issue of raising capital. The BIL/CSBF program, which are the official acronyms of the SBL loan provides a methods for our somewhat risk averse banks to approval business financing for our needs.

How does the SBL loan achieve this? It allows your firm to get financing for items such as leasehold improvements, typically not financeable with any other lender. Additionally, as we have hinted, our Canadian chartered commercial banks have some fundamental criteria for business lending.

Those criteria are typically historical track records which must evidence profits, cash flows, tangible net worth, and owner solid personal credit history. Not every business and certainly not every new business can meet or exceed this criteria.

So, as we have hinted, if you're not eligible at the bank for equipment and leasehold improvements financing you are immediately eligible if you apply under the government guarantee that Ottawa provides to our banks through INDUSTRY CANADA , which sponsors and administers the program.

In the last decades or so over 1 Billion dollars of loans have been made to Canadian business.

What are then some of the basic criteria that doesnt make this a Vegas crap shoot?! They are not complicated. Your business must have annual or projected revenues less than 5 Million dollars, the owner /owners must have a reasonable personal credit history, and also must not be in default of any federal income taxes. It would be somewhat ironic for the government to guarantee a loan to a business owner who has not filed, or has defaulted on income taxes owing.

What else does the business owner need to know? A couple more basics include the fact that the loan limit is $350,000.00, and that the program only finances 3 asset classes:

EQUIPMENT
LEASEHOLD IMPROVEMENTS
REAL ESTATE

Research and development cannot be financed under the program, but the good news is that R&D financing can be also achieved under the SR&ED program. You can finance your SR&ED Credit separately.

It's therefore critical to understand that this is not a working capital loan, and does not operate as a line of credit. Simply speaking, it’s a term loan.

Looking for more ' DECODING' of the program. Simply speaking you must have a minimum of 10% permanent equity or down payment on the financing provided, and you only have to provide a 25% personal guarantee on the total amount of the loan.

Cost of financing? Loans are made at 3% over prime, and come with fixed and variable options.

Looking for assistance in completing SME financing under the SBL government loans? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital needs. Unlike our Vegas scenario, the odds of being approved are significantly in your favor if you understand the program requirements.




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 :


7 Park Avenue Financial = SME Business Financing Options

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