YOUR COMPANY IS LOOKING FOR GOVERNMENT GUARANTEED LOANS
AKA THE ‘ SBL ‘!
FINANCING SMALL BUSINESSES IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Federal government loans in Canada are truly an ' all-purpose ‘financing solution for various financing needs. The ' SBL ' (small business loan ') from government lenders have several great uses - we're going to cover off 4 of them. Let's dig in.
Different objectives in Canadian business financing, more often than not, require different solutions - so that typically means different rules around what works, what doesn't and what's required. But uniquely to the SBL loan, it has the ability to ' fix ' at least 4 different financing needs.
WHAT ARE THE MAIN USES OF THE CANADA SMALL BUSINESS FINANCING PROGRAM
Let's recap those 5 uses of the program - They are:
1.Purchase an existing business
2.Start a business
3.Buy an existing or new franchise.
4. Finance leasehold improvements to your premises/finance needed assets for your business
5. Acquire real estate for your business
HOW DO GOVERNMENT LOANS WORK - IS THE GOVERNMENT THE LENDER?
We've spoken of ' government lenders ' in the program. In reality, there is just one government lender, and that’s our Canadian banks. They are essentially the ‘delivery vehicle ' for your SBL financing needs. There's a little irony here in that the same loan you COULD NOT get from a Canadian chartered bank is suddenly ... AVAILABLE!
YOUR LOAN IS GUARANTEED BY THE GOVERNMENT OF CANADA
The simple reason for that is that the government, via INDUSTRY CANADA, essentially guarantees most of the loans to our Canadian banks. In recent years that has meant that every type of business in Canada, in almost all industries, has received billions of dollars of loans annually - recent stats are that about 8000 companies apply and are approved under the program for a typical loan amount of 350k or less.
At the end of the day, it's simply an ' incentive ' for our banks to lend to the SME sector. One technical point is that if your firm has either over 10 Million dollars of actual or projected (in case of a start-up) sales revenue, you are disqualified for the program.
Luckily that 10Million $ threshold still covers tens of thousands of firms that can still access the loan! In fact, govt stats tell us that these firms are powering a huge part of the economy.
If you're serious about getting approved for the right amount and promptly, it's necessary to give the banker and the program what they want. The good news is that list is not that large.
HOW DO YOU APPLY FOR A GOVERNMENT GUARANTEED LOAN?
Essential elements of a solid loan package include:
Business plan/cash flow ( 7 Park Avenue Financial prepares business plans that meet and exceed bank and commercial lender requirements
Owner bio
List of assets /items to be financed/acquired
Personal financial info on the owner (reasonable personal credit is a must)
A Premises lease identifying your business location
A registration fee is required when your loan is approved and can be bundled into your financing.
CONCLUSION
Want to learn more about a loan program for small businesses in Canada? If you feel you're unable to access the right banker or put together a proper package, consider seeking out and speaking to 7 Park Avenue Financial , a trusted, credible and experienced Canadian business financing advisor who can fast-track you to federal government loan success.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2021
