YOUR COMPANY IS LOOKING FOR A GOVERNMENT SMALL BUSINESS LOAN!
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
Government backed small business loans offer essential financial support for Canadian SMEs to grow and succeed.
Struggling with business financing? Discover how government backed loans can be your solution!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer GOVERNMENT BACKED SMALL BUSINESS LOANS & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
Government-Backed Small Business Loans
Many business owners in Canada in the SME sector aren’t fully aware that they are already qualified to take advantage of the SBL loan program in Canada. The Government Small Business Loan is an initiative of the federal government in Canada that helps thousands (in fact over 7000+ in 2010) of Canadian businesses to secure business financing on terms that rival those of the big boys when it comes to attractive rates and structures.
The Canada Small Business Financing Program provides attractive terms and competitive rates, making it a valuable source for business owners looking to start or expand their operations.
Let the 7 Park Avenue Financial team help you understand the benefits and qualifications of these loans can unlock significant opportunities for your business.
Misconceptions About the Program
There are many misconceptions about the program and that is why we feel quite sure that you may already qualify and probably just didn’t know it! Let’s examine some of these very basic and reasonable qualifications of the program, and let’s help you maximize the benefits already utilized by thousands of firms just like yours.
Government Involvement
'Government' isn’t necessarily the most popular word at any time when it comes to your day-to-day business. However, that’s misconception number 1, simply that this loan program is operated in the private sector, by Canadian banks, not the government directly. So where does the government come in then, ask clients. Simply they are guaranteeing the majority of the loan. Actual funding is done through your bank.
Challenges with Bank Knowledge Of The Program
The challenge we work through daily is that not all banks or bank employees rather are always familiar with the details of the program. So many clients who are keenly interested in availing themselves of this financing get mixed signals on how the program operates, its benefits, and most importantly, how to start the process and get approved quickly!
Eligibility Criteria
Let's cover some of the basic facts. To be eligible for the program your Canadian business, either incorporated or a proprietorship, must have revenues not exceeding gross annual revenues of 10 Million dollars. Start-ups are eligible for the program also.
Financial Challenges for Start-Ups
Most Canadian business owners who start from scratch are keenly aware of the financial challenges that are faced when financing a start-up, or a franchise. That’s really the spirit of the Canadian government's small business loan program... it’s providing financing to businesses and business owners who otherwise might not be able to acquire the financing they need.
Credit Requirements
Owners of the business must have reasonably good credit... in terms of the credit bureau beacon score that all Canadians possess that score should be in the 650+ range. Contrary to the belief of some this is not financing for people with poor credit. A registration fee is required on final credit approval and cal also be included in the financing. The financing is done at 3% over the lender's prime lending rate. An unsecured limited personal guarantee is taken on the financing on loan approval.
What does the SBL Loan finance?
What does the SBL government small business loan finance? That’s another area of what seems constant confusion when we talk to clients. The program used to finance equipment and leasehold improvements. Intangible assets and even franchise fees can now be financed, as well as working capital costs that financial institutions such as chartered banks won't finance.
Purchasing leasehold improvements on leased property and funding existing leasehold improvements are often a challenge for an early-stage company, Software purchase and production by the way is included as well as equipment costs.
Both new and used equipment can be financed - We meet many clients that are under a major misconception about SBLs - namely that the financing is cash and working capital. It is not! Thousands of small businesses benefit from the program every year and help in the government's goal to foster economic development under this term loan finance program -
The maximum loan amount under the program is 1.1 M dollars
Farming businesses have a separate similar program available in Canada for improving lease property and buying real property/ real estate acquisition. , and funding new business assets.
Key Takeaways - The Canada Small Business Financing Program
- Eligibility Criteria: Determine if your business meets the basic requirements for the loan.
- Application Process: Learn the steps needed to apply successfully.
- Benefits: Understand why these loans are advantageous compared to other options.
- Interest Rates and Terms: Know the financial terms to expect.
- Common Misconceptions: Clear up any misunderstandings about the loan program.
Conclusion
How can any business owner in Canada not want to take advantage of financing that can help build and grow their business?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in being successful and unlocking the benefits of the government small business loan program from the appropriate financial institution. That’s SBL for short!
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What are government-backed small business loans?
Government-backed small business loans are financial tools supported by the federal government to help SMEs secure necessary funding with favorable terms.
How can I apply for a government-backed small business loan?
To apply, ensure your business meets the eligibility criteria, gather necessary documentation, and submit an application through a participating bank.
What are the benefits of government backed small business loans?
These loans offer competitive interest rates, flexible terms, and a government guarantee, making them a safer option for SMEs.
What can government backed small business loans be used for?
These loans can finance equipment, leaseholds, and software, but not for working capital or cash.
Who is eligible for government backed small business loans?
Businesses with revenues or projections not exceeding 10 million dollars and owners with a credit score of 650+ are eligible.
How do government guarantees work in these loans?
The government guarantees a large portion of the loan, reducing the risk for banks and making it easier for SMEs to get approved.
What role do banks play in government-backed small business loans?
Banks and some credit unions handle the loan disbursement and management, while the government provides the guarantee.
How do interest rates for government backed loans compare to traditional loans?
Interest rates for government-backed loans are often lower and more competitive than traditional loans.
Can startups apply for government-backed small business loans?
Yes, startups are eligible for these loans as long as they meet the revenue and credit score requirements.
What should I do if my bank is not familiar with the program?
Seek assistance from a business financing advisor such as 7 Park Avenue Financial who understands the program and can guide you through the process.
How can government-backed loans help my business grow?
These loans provide the necessary funding for equipment and leaseholds, enabling businesses to expand their operations.
Are there any fees associated with government-backed small business loans?
Some banks may charge processing fees, but the overall costs are generally lower due to the government's guarantee. The federal part of the guarantee is 2% on approval and receipt of funding.
What is the maximum amount I can borrow with a government-backed small business loan?
The maximum loan amount varies, but it typically covers substantial financing needs for equipment and leaseholds.
