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Is Your Business Eligible For A Govt Guaranteed Business Loan ? Answer : Probably
OVERVIEW – Information on government loans in Canada . The Govt Small Business Loan Program is a great financing solution for many companies. Eligibility is explored and clarified
The Govt Small Business Loan in Canada (by the way, it’s not that small) is misunderstood by many business people and entrepreneurs. Are government loans right for your business? Are you eligible? We're cutting through the chaff for those answers. Let's dig in.
Whether you are starting a business or already growing one the government loan program is potentially an excellent way to achieve that goal. Unlike traditional bank and alternative financing solutions they have the backstopping of Industry Canada, who sponsors and monitors the program.
The govt is a guarantor for the majority of your loan!
What is often misunderstood is that the Govt/Industry Canada is not involved in the daily admin or approval of individual loans. They have chartered our banks to run the program. Major misconception: Removed!
What does the business owner/entrepreneur need to consider when considering a Govt guaranteed small business loan. Issues to consider are:
What will the funds be used for (This program is only for equipment/fixed assets, leasehold improvements, and real estate)
The amount of the loan requirement - (The program was recently increased to 1 Million dollars!)
Term of the loan - (typical terms tend to be 3-5 years, occasionally 7 years for longer life assets)
Qualifications of the program - ( The owner must be able to commit to a partial equity/down payment position in the loan - Typically there is no other ' senior lender' in place - Owners must have decent personal credit and are often judged on their business experience and past business expertise)
Always remember that these loans are not the only alternative for business owners and financial mgrs to consider. Both traditional and alternative financing is available for many of your business needs - These other solutions include:
A/R Financing
Inventory loans
Non bank asset based lines of credit
Equipment financing
Sale leasebacks
Commercial mtge refinancing
SR&ED Tax Credit Loans
Royalty Finance
Unsecured cash flow loans
Working capital loans
The attraction of the Government guaranteed Small Business Loan is of course the guarantee of the govt on your loan. Without the aid of an advisor many business people find the process cumbersome with the expertise of an expert.
Both the attractive rates of the Small business loan program as well as the uses of funds make these loans very desirable. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan and cash flow needs.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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