YOU ARE LOOKING FOR AN SBL GOVERNMENT 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
Small Business Government Loans are a vital resource for entrepreneurs seeking reliable financing.
Struggling to secure the funding your small business needs? Discover how Small Business Government Loans can be your solution.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Small Business Government Loans and working capital solutions – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Small Business Government Loan In Canada
Debunking Myths and Misinterpretations in Canadian Business Financing
Nothing is as satisfying as setting the record straight on myths and misinterpretations in Canadian business financing.
Financial institutions are crucial in facilitating loans for small businesses through programs like the Canada Small Business Financing Program (CSBFP).
Additionally, the federal government guarantees a significant portion of these loans, providing financial security for lenders. That’s why we’re debunking four. Can we call them ‘urban myths’ about SBL government loans?
It’s your Biz 101 on the small business loan, which, at a maximum of 1.1MILLION, has never really seemed that small to us. Here we go!
Myth 1: Small Business Loans Are Not Being Made
Because of the general tight credit environment, many people believe that SBL loans are not being made.
Using the most readily available data, clients are often surprised to hear that over 9,000 government small business loans are made annually for several billion—yes, that’s a billion with a ‘B.’
So, never think there is no healthy environment for qualified business owners and entrepreneurs for the Industry Canada BIL loan. Economic development is crucial in creating this healthy environment by providing financial support and fostering growth through initiatives like those from Innovation, Science and Economic Development Canada (ISED).
Myth 2: It’s Not Easy to Get an SBL Loan from Financial Institutions
It’s not easy. That’s probably one of the most common things we hear about the program.
All we can say to that is that it’s as hard as you make it because the program is very defined, needs only a handful of criteria for successful completion, and at the same time provides great terms, rates, structures, limited guarantees, etc., around the financing you will receive.
Credit approval is based on meeting established terms and conditions. It is not easy to obtain credit when you don’t understand the process and qualifications.
Myth 3: It Takes Forever to Get an SBL Loan Approval
It takes forever. Well, if you consider two days forever, we suppose you're right, but a proper submission under the program will usually come back with final approval (or decline) within a day or two.
In our experience, there is sometimes some back-and-forth on a transaction after it has been submitted, which are essentially some ‘clean up' items or clarifications required by the underwriter.
Myth 4: You Don't Need a Business Plan for a Small Business Loan
Myth #4 - You don’t need a business plan. Plain and simple, you’re wrong because successful submissions under the program always need a business plan.
Does it have to be professionally prepared and follow general guidelines for this type of document? No, but a well-thought-out plan that provides a clear overview of who you are, your business, and your financial potential is important.
Including eligible purchases in your business plan can demonstrate the loan's intended use. Remember, the SBL underwriter isn’t sharing your business's profits or future profits; he or she just wants to know that they have a reasonable chance of getting repaid from your sales and resultant cash flow.
KEY TAKEAWAYS
-
Understanding Eligibility: Knowing the criteria can greatly increase your chances of loan approval.
-
Application Process: Familiarize yourself with the step-by-step process to streamline your efforts. A registration fee is payable on approval
-
Benefits of Government Loans: Learn why these loans are advantageous compared to other financing options, such as financing leasehold improvements on leased property
-
Common Myths: Dispel misconceptions to approach the application with confidence.
-
Necessary Documentation: Ensure all required documents are prepared to avoid delays.
-
Conclusion: Moving Towards Financing Success
So that’s the great ‘debunk’ on SBL Canada government loans.
You’re now well-armed and informed to move toward financing success. For assistance with your government loan, call 7 PARK AVENUE FINANCIAL, a trusted, credible, and experienced Canada business financing advisor.
The Canada Small Business Financing Program (CSBFP) is crucial for small businesses seeking loans. It shares the risk with lenders and facilitates access to financing through various financial institutions.
FAQ
What are the eligibility criteria for Small Business Government Loans?
Eligibility criteria typically include business size, credit score, and loan purpose. Specific requirements can vary by program. In some cases, principal payments can come with short-term interest deferrals within the term loan structure.
How long does it take to get approved for a Small Business Government Loan?
Approval times can vary, but with proper documentation, it can take as little as a few days.
Do I need a business plan to apply for a Small Business Government Loan?
Yes, a well-prepared business plan is essential to demonstrating your business’s viability and repayment ability. Start ups should always prepare a solid business plan.
What are the benefits of Small Business Government Loans?
These loans offer favourable terms, a competitive lower interest rate, and flexible repayment options compared to conventional loans.
What constitutes eligible purchases under the loan program?
Eligible purchases include specific items and expenses such as leasehold improvements and equipment. Purchases made in the previous year can also be considered eligible, broadening the scope of financing availability.
How can the loan cover working capital costs?
Lines of credit under the loan program can be utilized to cover ongoing operational expenses, known as working capital costs. When financing these costs, lenders may also secure other business assets.
Are intangible assets eligible for financing?
Yes, intangible assets are eligible for purchase under financing programs, alongside physical assets like equipment and real property. Lenders can secure loans against intangible assets as part of their financing strategy.
Are there any common myths about Small Business Government Loans?
Yes, common myths include believing these loans are impossible to get or the application process is overly complicated.
BDC loans are also available from the crown corporation.
How can I improve my chances of getting approved for a Small Business Government Loan?
Ensure you meet all eligibility criteria, have a solid business plan, and provide all required documentation accurately. Additionally, making lump sum payments can help manage repayment schedules and improve cash flow.
Are there specific industries that qualify for Small Business Government Loans?
Most industries are eligible, but some programs may have specific exclusions or preferences.
What should I do if my loan application is denied?
Review the reasons for denial, address any deficiencies, and consider reapplying or exploring alternative financing options.
How do interest rates for Small Business Government Loans compare to other loans? Government loans often have lower interest rates than traditional loans, making them a more affordable option for many businesses.
Can I use a Small Business Government Loan for any business purpose?
These loans can be used for various purposes, including purchasing equipment, real estate, and working capital, but must comply with program guidelines.
What is the maximum amount I can borrow through a Small Business Government Loan?
The maximum loan amount varies by program, but it can be up to $350,000. Real property is an essential asset for securing financial support.
What are the repayment terms for Small Business Government Loans?
Repayment terms are typically favourable, with lower interest rates and longer repayment periods than traditional loans. Farming businesses are not eligible for this program and should look for other tailored programs.
How does the application process for a Small Business Government Loan work?
The process involves applying detailed information about your business, financials, and the intended use of the loan. With proper preparation, approval can be quick.
By understanding these aspects of Small Business Government Loans, you can make informed decisions and enhance your chances of securing the necessary funding for your business.
ABOUT 7 PARK AVENUE FINANCIAL
7 Park Avenue Financial originates traditional and alternative financing and asset-based financial services providers that offer lease financing, cash flow and working capital financing, and business acquisition loans.
The company works closely with clients to develop key business strategies based on their unique needs. The company is committed to providing the highest level of customer service and innovation to help businesses succeed.
Combining our experience and solutions, we help our clients achieve profitable cash flow and debt financing and streamline the process with a full range of credit offerings.
