Understanding ( And Getting ) A Canada Government Small Business Loan – SBL Loans 101!

How To Smooth Out the SBL Loan Process For Business Financing Success

Information on the Canada government small business loan . Understanding the process of Canadian ‘ SBL Loans ‘ and qualifying for approval .



Understanding. Getting. They might seem a bit unrelated, but in the context of a Canada government small business loan boy do they make sense. Let's examine how SBL (small business loan) loans work in Canada. And won't it make sense that understanding the process around this program will allow you to get approved and funded! We certainly think so.

We'll examine how the SBL loan is evaluated in Canada, what your expectations should be, and provide you with a clear road map of business financing success with SBL loans.

Clients often come to us with experiences of frustration around the program. A common complaint is that whoever they have spoken to about getting approved for the loan seems disinterested at best. And don't even start to talk to us about timeline, that’s the other frustration around the program. So is it the banks fault, or yours. Let’s examine who's to blame.

First of all, some key basics on the program - since if you don’t know what it is you can’t deal with it, right? The Canada government small business SBL loan is the Canadian version of the U.S. ‘SBA’ program. In Canada it’s sponsored and regulated by INDUSTRY CANADA in Ottawa, but it’s actually the Canadian chartered banks that provide the financing for the program. Thousands (in 2010 over 7000) Canadian businesses are funded every year under this great program. The maximum loan amount is $ 350,000 and we can assure clients that rates, terms, structures, as well as the limited guarantee component is very appealing.

So back to the question ' who’s to blame’ when the program doesn’t work for you. It is only common sense that the banks want to ensure that they adhere to the program guidelines. And it sure helps if you don’t have a bank that is unfamiliar with SBL loans. And if you run into a banker that is somewhat daunted by the paperwork details of the program that only complicates the situation.

So what is the take away then on this key point? It’s simply to find and work with a banker who is very familiar with the program. All you need to do is ask, and there’s even an easier way than that, which will comment on later.

Naturally we commiserate with the bank on applicants who aren’t prepared. We are guessing the Canadian chartered banks don’t make a ton of money on these loans, at the same time they require a fair bit of operating costs and reporting under the program.

Is there a way we can clearly summarize the road map for success under the small business loan SBL program? When credit trainees in any aspect of lending start their careers they are told to focus on the 3 C's of credit extension – character , capacity and capital.

It occurs to us that that are a great way to create your own mini road map on SBL approval. Demonstrate to the bank your business experience and personal credit rating, demonstrate in your business plan how your business will have the capacity to repay , and , with respect to capital, make sure you have the required 10% permanent equity down payment under your loan request.

Want a fast track to both understanding the Canada government small business loan program? Easy to do. Speak to a trusted, credible and experienced Canadian business financing advisor who can work with you and a top notch SBL banker to get you the business financing you need - quickly!



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 7 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 :

http://www.7parkavenuefinancial.com/canada_government_small_business_loan_sbl_loans.html

7 Myths Of The Canada Government Small Business Loan – Mom Never Told You This!

Putting An End To Confusion Around the federal small business loan

Information on misunderstandings and incorrect perceptions on the Canada government small business loan . Let good information on SBL loans be your key to financing success.



Misinformation. It's all over the place these days it seems. Let's clear up some ' myths' and misunderstanding around the Canada Government Small Business Loan.

The small business loan program in Canada is sometimes more commonly known as the ' SBL ' loan. It is a tremendous program to assist Canadian new and existing business owners with the financing of their business.

At a time when Canadian business financing seems more challenging than ever it seems logical that the entrepreneur and business owner wants to explore all possible financing alternatives. In our opinion the program in question is bar none of the best financial alternatives for Canadian business.

So why does so much misinformation and misconception seem to exist whenever we discuss the program with clients. We don’t know, but we do know we can help clear up the misinformation - so let’s go!


Myth # 1- ' Our business is doing ok and doesn’t need a government small business loan ' Well that might be the case but if you are looking in the future for equipment , real estate or leasehold financing ( yes you can finance leasehold improvements!) then the rates , terms and structure of the program cant be beat .

Myth # 2- ' The SBL loan is for business owners with bad credit ' - Wrong, very wrong, in fact the business owner, although he or she only guarantees 25% of the loan under the program must have reasonable personal credit . The program is best described as being financing for businesses, including start ups that can't access all the traditional credit they need.

Myth # 3 - ' The government lends the funds directly to you or your company ' - Wrong again, as the program is guaranteed by the government, and administered from a policy perspective -- however primarily banks are the ' facilitators ' of the program.

Myth # 4 -' the program is a grant - and no payment is required ' Very wrong! This is not a grant; it’s a 5-7 year term loan with regular monthly payments. Many people we speak to are inquiring about ' grants' and other federal incentives... that is NOT the SBL program.

Myth # 5 - ' Anyone can get a Canada government
Small business loan ' - You guessed it, wrong again. Although the rates, terms, structures, flexibility, and limited guarantee are the key aspects of the SBL loan there are certain criteria that must be in place to qualify. Additionally the program only covers businesses with actual or projected revenues under 5 Million dollars.

Myth # 6- ' Government small business loans are hard to get, and involve a lot of ' red tape' '. Well, some may think that, we certainly don’t think that’s the case. Approvals with the proper package in place can take only a day or two! It's all about ensuring you have a package in place that covers all requirements in a clear fashion.

Myth # 7- ' A company or individual can get a Canada government small business loan anywhere ' - Well not really, you need to ensure your institution works with the program and has experience in submitting requests that are clear and make sense and satisfy program criteria .

Well, there you have it. If you want to maximize the benefits of this great program speak to a trusted, credible and experienced Canadian business financing advisor who can help you fast track business financing success, with a program that is much tailored to your financing needs.



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 7 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 :

http://www.7parkavenuefinancial.com/canada_government_small_business_loan_sbl.html

Why The Canada Government Small Business loan Is Your Best Bet For Start Up Financing

Do you want 957 million reasons why the Canada government small business loan is your absolute best bet in Canadian business financing for small and medium size firms? Well, that’s how many dollars the government program we are discussing put into the economy last year (2010).
Small and medium sized firms, including start ups, are the recipients of the financial benefits of this program. It is very important to clarify our reference to ' medium size ‘, since the cap for sales or projected sales is 5 Million dollars in revenue. That is to say the program only lends to firms with revenues under that amount.
Should your firm, or yourself as a new entrepreneur be looking at this financing. Clearly the lending criteria, as well as the overall rates, terms and structure of the government small business loan lend themselves for serious consideration. Rates are comparable to what larger Canadian corporations can achieve - and if you want the real kicker here it is - a personal guarantee by shareholders is required for only 25% of the entire loan value. That in itself is appealing to many entrepreneurs and business owners who do not wish to offer up full personal guarantees.
How much can I/we get? That’s the very firms and very typical question that we are always asked. Well, here is where even more good news kicks in. Up until 2009 the cap on the program was 250,000.00 - This amount was raised to 350,000$ during the most recent economic recession. 350K continues to be the loan maximum - however for borrowers who wish to facilitate a real estate transaction using the program you can actually go to half a million dollars on the program .
Why isn’t everyone or almost everyone taking advantage of the program? We can't offer up all the reasons, but some of the better published ones relate simply to the fact that most eligible recipients are not aware of the program! That’s almost too unbelievable when you consider the very attractive rates structures and terms that we speak of.
Another typical belief is that while the Canada government small business loan is guaranteed by the federal government (the owner of the program is Industry Canada) the program itself is administered by the chartered banks in Canada. Many feel the banks have not done a great job in promoting the program, due in some part to staff training issues, as well as the paperwork admin, and reporting that banks have to undertake when they are asked to create such a loan on your behalf.

Could you use funds for land, equipment, vehicles, software, leasehold improvements? Those very specific items are what 99% of all government small business loans are utilized for.
It is important for borrowers to also investigate what the program can’t be used to finance.
In summary, yours is not to question why - yours is to take advantage of the program .Speak to a trusted, credible and experienced Canadian Small Business Financing Advisor to learn how you can immediately take advantage of this great, and often mis-understood small business loan in Canada.

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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 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canada_government_small_business_loan_financing_2.html