Business Finance Solutions Include Government Loans & SRED Tax Credits

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YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE SOLUTIONS! 

Fueling Growth: Government Loans in Canada for Small Business Finance For R&D

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing businesses today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

 

 

  

Empowering Entrepreneurs: Unleashing Potential Via Government Loans & SR&ED Tax Credit Financing   

  

 

The main government loan programs discussed in the article are the Canada Small Business Loan Program and the SR&ED (Scientific Research and Experimental Development) program

 

Business finance solutions in Canada include the Canadian Small Business Government Loan as well as the SR&ED tax credit program. Should you ' tap into ' these two programs (probably about 15,000 other firms do already!) and how is that done? Let's dig in.

 

 

INTRODUCTION

As a Canadian entrepreneur/ business owner have you considered exploring the avenues of government lending and other financing programs? Such lending options have been carefully curated by the Canadian government to assist companies in growing in Canada.

Understanding the vast landscape of government-sponsored loans in Canada can prove daunting.
 

The Canada Small Business Financing Program and the Scientific Research & Experimental Development (SR&ED) program are two of the most popular programs.

 

Although business owners and financial managers in Canada are sometimes reluctant to take on debt (or in fact anything associated with the wheels of government) the reality is that thousands of companies utilize our two aforementioned programs to tap Billions of $ of capital every year.

 

 

THE CANADA SMALL BUSINESS LOAN PROGRAM - THE ' SBL ' - FUELING SME BUSINESS GROWTH IN CANADA 

 

 

The Canada Small Business Financing Program offers financing for small businesses in Canada -Any business under 10 Million dollars is eligible.

The program is intended to bridge the fiscal divide between traditional financial institutions for accessible funding.

To be deemed eligible for the program, businesses need to adhere to specific qualifying criteria. These typically encompass being a profit-oriented venture, operating in Canada, and meeting some key eligibility criteria. Funding is flexible and comes with competitive interest rates.

The eligibility process for the Canada Small Business Financing Program is uncomplicated, generally necessitating basic documentation like financial statements, a business plan, and the ability to demonstrate loan repayment.

Businesses can access government loans via banks and cooperative financial institutions such as credit unions. The program proffers notable benefits, including reduced initial down payment requirements, extended loan repayment durations, and the capability to allocate the funds for diverse objectives such as acquiring assets and technology, commercial real estate, and the funding of leasehold improvements.

The govt SBL program is one of the best initiatives the Canadian government takes in ensuring a certain amount of capital is available to many predominantly younger and growing firms.

 

This includes start-ups, as they and other firms in the small and medium enterprise chunk of the economy generally power Canadian economic success.

 

It's important to realize that only 3 asset categories are financeable under the program:

 

Equipment/fixed assets/technology/application software

 

Leasehold improvements

 

Real Estate

 

In 2022 the government made substantial increases to the program which no include credit lines and working capital.

 

Depending on which asset category or categories you are applying for the loan can be as much as $1,100,000.00.  Want some more good news? Owners are on the hook for only 10% as a personal guarantee component of the loan, the government guarantees the balance.

 

In case you think we at 7 Park Avenue Financial are gushing too much  over such a great program we probably are as other strong selling point of the program include:

 

No prepayment penalty

 

Competitive rates

 

Terms ranging from 2-7+ years

 

Remember, this isn't a government ' grant ' - it's a true term loan that must be justified by a good business plan and hopefully some good mgmt and industry experience. 

 

The government relies on Canadian banks to administer the program and your best bet is to ensure you're working with someone who understands criteria and timelines and the basics of a loan package.  (Those basics are typically a business plan and cash flow that reflects the loan repayment.)

 

 

SR&ED  PROGRAM - FINANCING RESEARCH AND DEVELOPMENT IN CANADA 

The qualification for the SR&ED program investment tax credit hinges on a company's engagement in suitable and eligible r&d activities around scientific and technological uncertainty, like devising new products, procedures, or software, as well as enhancing existing ones.

Expenses eligible for claims under sr ed expenditures might encompass salaries, materials, subcontractor fees, and overhead costs directly associated with R&D undertakings.

The procedure for making a sr ed claim via the  SR&ED program requires comprehensive documentation of the research venture, including technical narratives, project timelines, and financial accounts.  Claims are often prepared by third-party consultants, known as ' sr&ed consultants ".

Businesses can file claims with the Canada Revenue Agency (CRA) for examination and sanction for eligible sr ed r&d. The program provides substantial benefits, such as tax credits, deductions, and even refundable tax credit refunds, allowing businesses to reinvest in additional research and development endeavours.

With its commitment to innovation, Canada has carved a niche for itself as a nexus of creativity and the SR&ED program has played a pivotal role in cultivating r&d in Canada. The program has enabled companies across diverse industries like technology, healthcare, software and manufacturing, to expand and grow around their work in scientific and technological criteria.

For privately owned firms the government makes this tax credit ' refundable'. This credit can then be monetized or cash-flowed as a bridge loan or cash-flow advance. Many early-stage firms use this cash flow loan as a main component of their overall working capital or cash flow strategy. Talk to the 7 Park Avenue Financial team about sr&ed tax credit financing.

 

GOVERNMENT GRANTS AND FUNDING PROGRAMS

 

In addition to loans Canadian federal and provincial governments offer various grants and funding programs to support businesses and individuals financially. Some of the popular funding programs and grants in Canada are:

- Canada Job Grant

- Strategic Innovation Fund

- Canada Summer Jobs

- Scientific Research and Experimental Development Tax Credit

 

KEY TAKEAWAYS

 

Both the Canada Small Business Loan Program and the SR&ED program aim to foster business growth and development in Canada, although each serves a distinct purpose.


    Through comparative analysis and understanding of these initiatives, entrepreneurs and researchers can leverage the advantages provided by each program.

  The Canada Small Business Loan Program is chiefly designed for small businesses seeking financial help. It aids in overcoming fiscal challenges and propelling growth ambitions.

 In contrast, the SR&ED program is centred around supporting research and development endeavours, stimulating businesses to invest in innovative projects and maintain a competitive edge in the global marketplace. SR ED Financing is available to firms who wish to finance their refund in lieu of waiting for the government refund of refundable tax credits.

 Businesses can consider employing both these initiatives in a combined manner to maximize benefits.

  By securing funding through the small business loan program, Canadian companies can bolster their financial stability, thereby enabling investments in research and development initiatives that can reap SR&ED program incentives.
 

  

CONCLUSION  

 

Government-sponsored lending options can serve as a substantial financing solution for SMEs in Canada.

 It's essential to diligently explore your alternatives, collate all required documentation, and engage with a trusted advisor such as 7 Park Avenue Financial.

Canadian government loans, notably the Canada Small Business Financing Program and the Scientific Research & Experimental Development (SR&ED) initiative, have benefited thousands of firms in Canada,

By seizing these opportunities, businesses can accelerate growth and profits.

If you're looking to tap into 2 solid programs that deliver capital and cash to your business call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in navigating either program in a timeline that makes sense for your capital needs.

 

FAQ: FREQUENTLY ASKED QUESTIONS  / PEOPLE ALSO ASK  / MORE INFORMATION

  

 
How does the Canada Small Business Loan Program benefit small businesses?  

 

The Canada Small Business Loan Program provides financial assistance to small businesses, offering competitive interest rates, flexible repayment options, and advantages such as lower down payment requirements and longer amortization periods. It enables small businesses to access capital for various purposes like purchasing equipment, expanding operations, or increasing working capital.

What is the Eligibility Criteria for Government Loans

To be eligible for a government loan in Canada, you must meet certain requirements. The eligibility criteria vary depending on the type of loan you are applying for. However, some of the common eligibility criteria for government loans in Canada are:

    - You must be a Canadian citizen or a permanent resident.

    - You must be at least 18 years old.

    - You must have a good credit score.

    - You must have a solid business plan (for business loans).

    - You must be able to demonstrate the ability to repay the loan

 

What Documents are Required for Applying for a Government Loan

 To apply for a government loan in Canada, you will need to provide the following documents:



    - Personal identification (e.g., driver’s license, passport)

    - Proof of income (e.g., pay stubs, tax returns)

    - Business plan (for business loans)

    - Financial statements (for business loans)

    - Credit report

    - Other supporting documents as required

 

What are the Pros and Cons of Government Loans

 While government loans can be an excellent source of financing, they also have their pros and cons. Here are some of the advantages and disadvantages of government loans:

     Pros

    - Lower interest rates compared to traditional bank loans.

    - Longer repayment terms.

    - Access to funding for businesses that are unable to secure traditional financing.

    - Loan forgiveness options for some loan programs.


    Does not require collateral


    Cons

    - Strict eligibility criteria.

    - Lengthy application process.

    - Limited loan amounts for some loan programs.

   

 
What is the purpose of the SR&ED program? 

  The SR&ED program is designed to foster research and development activities in Canada for Canadian controlled private corporations. It provides significant incentives, such as tax credits, deductions, and cash refunds, to businesses engaged in scientific research and experimental development. The program encourages innovation and supports companies in developing new products, processes, or software, as well as improving existing ones. A sr ed tax credit loan helps companies recoup the cash refund prior to filing claims via a sred cash advance loan.

 
 How can businesses qualify for these loan programs? 

 To qualify for the Canada Small Business Loan Program, businesses must meet specific eligibility criteria, including being a for-profit enterprise, operating within Canada, and demonstrating a solid business plan. On the other hand, eligibility for the SR ED TAX INCENTIVES  program is based on a business's involvement in qualifying research and development activities, and expenses directly related to those activities.

 How do these loan programs contribute to the growth of businesses in Canada?

 
These loan programs contribute to the growth of businesses in Canada by providing them with much-needed financial resources. The Canada Small Business Loan Program helps small businesses overcome financial barriers, enabling them to expand, invest in new opportunities, and create jobs. Sr ed tax credits encourage research and development initiatives, allowing companies to innovate, improve their competitiveness, and contribute to economic growth via these tax incentives. SR ED Financing allows companies engaging in r&d to accelerate the cash flow benefits of the program.



 

Click here for the business finance track record of 7 Park Avenue Financial

How Do You Finance A Business Purchase ?

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Sources Of Finance For Buying A Company In Canada

Buying a business in Canada is the goal of many entrepreneurs in Canada . The financing of that purchase requires some specialized skills when it comes to the strategies involved in acquiring an existing family business, or in some cases capitalizing on the unfortunate circumstances of firms that might be challenged in some manner. In some cases it's a solid way , versus organic growth, to grow revenues and profits via a merger/acquisition type scenario.


We at 7 Park Avenue Financial leave it up to our clients to identify the business opportunity they wish to explore from a purchase perspective. Our focus is on what comes next - ensuring you have access to solid a time worn financing strategies that will work for your success in a business acquisition.


Financing a Business Purchase In Canada

One part of the business finance puzzle that is often overlooked is known as the VTB .. AKA the ' vendor take back, if only for the reason that it minimizes the financing your are required to generate to close the transaction. That is not the only reason though! Another term for this strategy by the way is ' owner financing '. Anyway you look at it VTB's are a solid strategy that make it easier to access the other types of financing that you will need to complete the loan , which typically are term loans and business revolving credit lines.

We forgive business people for thinking that ' the bank ' is the only way to acquire financing to purchase a business. That's a logical thought, but of course there are a number of other options, some of them alternative in nature . However caution is required if you are unprepared to understand how a bank looks at financing - which can in some cases be an immediate road block.

Early on in the business acquisition cycle you must also agree with the seller as to whether the sale will be a purchase sale or an asset sale . This is a key accounting and legal type issue which is a separate subject in an of itself .

It should be noted that in the SME COMMERCIAL FINANCE area it is difficult to finance a ' share sale ' given that shares in small private companies are not liquid . So if financing is required in your purchase most owners are encouraged to choose the 'asset sale ' scenario. Naturally larger companies , public companies etc have a number of ways to finance purchases - they have much more access to capital . Those companies often consider share sales, and also are looking at numerous tax minimization strategies.

In looking at assets of the company you are focused on buying it's key to determine the value of those assets . In many cases in modern times some of those assets might even be ' intangible ', and might include patents, contracts, software, etc.
Tangible hard assets, typically the ' fixed assets ' on the balance sheet can easily be valued by appraisals from reliable and experienced third parties.


Goodwill is the excess dollar amount you're paying on top of the assets. Goodwill is typically difficult to finance, which is why our owner financing/vendor take back strategy is sometimes a good place to start. The sellers financing, often referred to as ' holding the note ‘can allow you to complete a purchase satisfactory to all parties.


Both banks and non bank commercial finance lenders view vendor take backs very positively. Since the seller of the business has a vested interest in making the purchase also successful you often can get very favorable, in fact below market financing rates from the owner or owners of the company being acquired.

Many smaller businesses in Canada, including franchises of new and existing locations can be financed with the assistance of the Canada Government Small Business Loan . The government guarantees a large part of the loan to your bank as long as you meet minimum requirements, which we at 7 Park Avenue Financial view as very reasonable .Owner financing can also be a part of the gov't loan . Many small and medium sized enterprises can utilize the Small Business Loan govt program to acquire a business. It works, as we have proved time and time again at 7 Park Avenue Financial.



A typical structure for financing a purchase when you’re buying a business in Canada is the down payment, debt financing, and the vendor take back/owner financing. This three piece solution to buying a company can also be complemented with a number of ' Alternative Finance ' strategies that might include:

A/R Financing

Non Bank Credit Lines

Equipment Finance Leases

Sale Leaseback strategies

Inventory Finance

Purchase Order Finance

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success when you're looking for assistance in structuring the best deal and financing for your business purchase.






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

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

Confessions Of An SBL Government Loans Super Fan . The Canada Small Business Loan

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INFORMATION ON GOVERNMENT SMALL BUSINESS LOANS IN CANADA

SBL government loans . I guess you could call us a fan, even a super fan. The word fan comes from the root word ' fanatic ‘, denoting an ' enthusiastic devotee. So why is the Canada small business loan the recipient of our full support. Let's try and preach to some of the potential unconverted.

More and more businesses in Canada, new, and established, are seeking loans backed by the government. Talk about a great co-signer! And remember that we are talking about a loan, not a grant. We're always being asked about ' grant money’... free money in essence. We're sure it's out there somewhere, we just haven't found it, and we're equally believers in the ' there is no free lunch ' concept!

The SBL loan is a great choice for business when you're in a touch economy; it’s all about choosing the right lender under the program and ensuring you are aware of some basic rules and regulations that allow you to qualify for the program. We feel quite strongly that every Canadian business owner can actually do a great job of pre-qualifying themselves in advance.

Let's recap some of those basic qualifications. They include being a Canadian citizen or being eligible to legally borrow in Canada. That's just common sense. Although you only have to only guarantee 25% of the loan personally that comes with the understanding that you have a reasonable personal credit history. In Canada the credit bureaus work on a ‘scoring ' basis, and for purposes of SBL government loans you should at least have a score of 650.

The questions of rates and structures always comes up in connection with questions from clients. Interest rates are ultra competitive given that you business is either completely new, or has under 5 Million dollars in revenue (That’s the revenue cap under the program). Rates on the SBL small business loans are in the 3% over prime range and a small government fee can usually actually be added into the financing of the loan.

Any business financing application has strong elements of one thing - and that’s common sense questions. You should therefore be prepared to address some very basics, including a resume or bio on yourself, a description of your business, a cash flow repayment plan (that’s critical). Additionally some supporting documents are required, all of which in our opinion are again. very ' common sense ' oriented. They include a copy of your tax return, your incorporation data, a premises lease, etc.

It's a great idea to also have a clear idea of the financing you are requesting. The three categories of assets that can be financed under the program are equipment, leaseholds, and real estate. Unfortunately it’s not a cash loan per se, so there are no working capital or cash flow borrowings under the program. And by the way that’s a popular misconception.

We should also add that you need to inject a minimum of permanent equity, in effect your ' down payment ' of 10% of your total borrowing.

It’s strongly recommended that you investigate the power of the Canada small business SBL loan. You just might find you will become a super fan also! Speak to a trusted, credible and experienced
Canadian business financing advisor for help with this great program.








7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

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

SBL Loans! Is The Canadian Government Business Loan Help From Where You Least Expect It? Gov Programs For Business Finance

Government Assistance In Financing ? Yes!

Information on the Canada government business loan . SBL loans are the leading example of gov programs that work for Canadian business financing

Help from where we least expect it. We can't speak for you but we've always appreciated assistance in business, especially when it comes from sources you least expect. We're talking about the Canadian government business loan, in our opinion it’s the best or 2nd best of gov programs that work.


We've always loved the line ' Hi, we're from the government and we're here to help ‘... which is why SBL Loans in our opinion are the real world example of a phrase that is often associated with negavity. ‘Government ' ... ‘Banking’ ... many small and medium sized business owners cringe when they contemplate those words. Not today, though.


The government business loan in Canada is a primary offering via INDUSTRY CANADA in Ottawa. It offers SBL loans up to $ 500,000.00 for the purpose of financing equipment assets, leaseholds, real estate, software, etc. In actuality the 500k limit is specifically related to real estate, while other asset categories are capped at $ 350,000.00.


The program provides a long term fixed or variable rate financing to businesses looking to start, expand, and grow!


Misinformation abounds around the program; we're always surprised at the amount or lack of solid understanding and facts around gov programs such as this.


One of those main misconceptions revolves around who the lender is. We can at least forgive our clients who misunderstand the fact that while this is a government sponsored and guaranteed loan, in actuality the actual day to day dealings are in the private sector.


One of the greatest benefits of the program is something we have alluded to already, its that SBL loans fit perfectly for a number of company categories, including start ups, growing firms, and also franchises which make up a huge portion of the borrowing segment of this program.


As we have hinted, the program is run at the local level, local meaning wherever your firm is, because the program is underwritten and funded by your local Canadian chartered bank. By the way, one of the challenges of the program, as ironic as it may seem, is to find a banker that understands and supports the program in a positive manner. That means of course facilitating your application and recommending you for approval!


A common complaint we hear from clients on anything to do with ' gov programs' or banks in general is that ' forms and documents' are a challenge. Let's be realistic. All business financing requires a forms and app's, and we don’t necessarily subscribe to the fact that SBL loans are any different.


Some key basic requirements are a reasonable personal credit history for the busines owner/owners, a business plan and cash flow, and some historical financial statements if you're already in business. Very basic things such as your articles of incorporation are also required. Oh, and by the way, we strongly encourage clients to pay their taxes as you can expect to get a government loan when you owe them for back personal taxes already, right?!


The Canadian government business loan funds billions of dollars of small business loans in Canada. It's a working example of Gov. Programs that work. Speak to a trusted, credible and experienced Canadian business financing advisor today on achieving solid finance rates and terms you otherwise could not achieve. Bottom line? Get with the program!

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 13 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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

Business Finance Solutions Include Government Loans & SRED Tax Credits

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Here’s 2 Government Backed Financing Strategies Your Business Might Consider Tapping !

OVERVIEW – Information on government loans and SR&ED tax credits as valuable components of any business financing strategy for early stage and start up businesses in Canada

Business finance solutions in Canada include the Canadian Small Business Government Loan as well as the SR&ED tax credit program. Should you ' tap into ' these two programs (probably about 15,000 other firms do already!) and how is that done? Let's dig in.

Although business owners and financial managers in Canada are sometimes reluctant to take on debt (or in fact anything associated with the wheels of government) the reality is that thousands of companies utilize our two aforementioned programs to tap Billions of $ of capital every year.

The govt SBL program is one of the best initiatives the Cdn government takes in ensuring a certain amount of capital is available to many predominantly younger and growing firms. By the way, this definitely includes start ups, as they and other firms in the small and medium enterprise chunk of the economy generally power Canadian economic success.

It's important to realize that only 3 asset categories are financeable under the program:

Equipment/fixed assets/technology/application software

Leasehold improvements

Real Estate

Depending on which asset category or categories you are applying for the loan can be as much as $1,000,000.00. Want some more good news? Owners are on the hook for only 10% as a personal guarantee component of the loan, the govt guarantees the balance. In case you think we're just gushing over such a great program we probably are as other strong selling point of the program include:

No prepayment penalty

Competitive rates

Terms ranging from 2-7+ years

Remember, this isn't a government ' grant ' - it's a true term loan that must be justified by a good business plan and hopefully some good mgmt and industry experience.

The government relies on Canadian banks to administer the program and your best bet is to ensure you're working with someone who understands criteria and timelines and the basics of a loan package. (Those basics are typically a business plan and cash flow that reflects the loan repayment.)

The most common Tax Credit program that again, thousands of firms take advantage of is the SR&ED program which refunds a large portion of any R&D expenses. This R&D can span many different industries, including software development, clean and green businesses, mfg, etc.

For privately owned firms the govt makes this tax credit ' refundable'. This credit can then be monetized or cash flowed as a bridge loan or cash flow advance. Many early stage firms use this cash flow loan as a main component of their overall working capital or cash flow strategy.

If you're looking to tap into 2 solid programs that deliver capital and cash to your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in navigating either program in a timeline that makes sense for your capital 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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

Government Loans In Canada : Govt Small Business Loan Eligibility Explained

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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

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

Government Loans & SRED Financing Are 2 Business Loan Solutions You Shouldn’t Ignore

Free Money ? Not Really , But Is Your Company Acing These Two Government Financing Solutions?

OVERVIEW – Information on government loans in Canada. SRED Financing and the govt guaranteed small business loans ( not ‘ small “ anymore!) could be are great funding solutions for your company

Business Loan needs ? Government Financing ? We’re often asked by customers if there are grants and loans available for their business in Canada. On many occasions these firms are either a start up or pre-revenue. There is a general belief that there is 'free money' out there, and people are trying to find it! I categorically believe there is no free money available - if that was the case can you just imagine?!


However, there are some excellent programs, two in particular, that in our opinion are the two best government programs for Canadian business in the SMALL MEDIUM ENTERPRISE ' SME' sector.


The Canadian government has allocated hundreds of millions of dollars into what is known as the CSBF Loan program. The government provides a lot of data at its website around the availability of the program, how it works, and who is eligible.
While some of the information might seem overwhelming there is a lot of assistance available. For the purposes of this article we will share that the program is available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.


Most people that are familiar with the program might not know that in the current 2009 world economic crisis the government increased the amount of these loans to $ 350,000.00 and in some cases $ 500,000.00. Yet recently the funding amount has been increased to $1,000,000.00.
How can you qualify for the program, and, more importantly, do you qualify?


Customers need to review the classes of assets that can be financed. The true power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready, a full personal guarantee of payment is not required!
Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.


Do Canadian business owners know that the government can assist them in purchasing business real estate with limited guarantees and great rates and terms? We don't think so!


If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or acumen, and the ability or comfort level to complete this financing.
Those people should seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program.
Let's get back to free money! Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program.


If your company needs assistance with SR&ED financing solutions and / or the Govt Guaranteed Small Business Loan seek out and speak with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your finance 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 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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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