YOUR COMPANY IS LOOKING FOR A GOVERNMENT-GUARANTEED BUSINESS
LOANS!
FUNDING 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 businesses 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
Unlock the door to your business dreams with government loans – where possibilities meet funding."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We originate Government Small Business Loan solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
INTRODUCTION
Startup loans in Canada bring one of the largest challenges any entrepreneur/business person will face. That challenge, in many cases, can be eliminated via the Government Business Loan - often called the ' SBL. ‘ Yet confusion many times still reigns supreme when it comes to this program, how it works, how to access it, and... Oh yes, how to be successful.
Government loans for startup businesses offer vital financial support to entrepreneurs who dream of bringing their innovative ideas to life. By providing accessible funding options the Canada Small Business Financin Program fuels the growth of new businesses.
IS THE CANADA SMALL BUSINESS FINANCING PROGRAM THE BEST LOAN FOR A SMALL BUSINESS STARTUP?
As we have hinted, SBL loans allow you to get within reach of the initial financing you need for any business start-up. A startup can take many forms - starting from scratch, buying or acquiring a franchise, even buying an existing business and starting over ' (sometimes called a ' restart '). In other cases, other financings can already exist that you have arranged, and the govt business loan supplements that.
WHAT ARE SOME OF THE CHALLENGES OF STARTING A BUSINESS
Many of the challenges you face on financing are preceded by other issues you have already faced before financing, for example, selecting a business location, negotiating a premises lease, doing your due diligence and research on your transaction, etc.
WHAT IS THE RIGHT FINANCE SOLUTION FOR YOUR STARTUP
Putting the right finance solution in place for your venture means two things, arranging initial financing and ensuring and allowing you will have some working capital and cash flow for your ongoing operations and growth.
Experts tell us that new small businesses should always have a business plan to achieve better finance approval and funding success. 7 Park Avenue Financial business plans prepare clients to meet and exceed bank and commercial lender requirements. Let our team walk you through the application process.
WHAT DOES THE GOVERNMENT LOAN FINANCE?
One of the main misconceptions of govt business loans in Canada is that they, in fact, can provide working capital and cash flow. They can't!! The program is specifically formulated to address only 3 asset categories -
Equipment
Leaseholds
Real estate
IMPORTANT #### MAJOR CHANGES TO THE CANADA SMALL BUSINESS FINANCING LOAN WERE IMPLEMENTED IN 2022
Maximum Loan Amount: New max amount: $1.15 million (up from $1 million). Includes: $1 million for term loans; up to $500k for equipment/leasehold improvements (up from $350k). $150k for intangible assets/working capital. Additional $150k for lines of credit for working capital (beyond term loan's $150k).
Term Loans: New financing classes include intangible assets and working capital. Max loan term: 15 years for various expenditures.
Eligible expenditures period extended to 365 days pre-approval. An appraisal is valid if done within 365 days of pre-disbursement. Max interest: Prime + 3%; 2% registration fee; 1.25% annual fee. Registration period extended to 6 months post-disbursement. Security is required for financed assets or general business assets. Default procedure simplified to demand for repayment without prior notice. Claim process documentation requirement reduced to 75% of the outstanding loan.
Line of Credit: For working capital costs with examples like inventory, R&D, payroll, and rent. Eligible expenditures for things invoiced within 365 days of pre-authorization. Max term: 5 years, with options for renewal, conversion to the term loan, or repayment with a conventional loan. Interest rate max: Prime + 5%; 2% registration fee; 1.25% annual fee on outstanding balance. Security in business assets is required. Default leads to the immediate demand for repayment; claims are submitted within 60 months of the last payment.
MANY FRANCHISES USE THE GOVERNMENT-GUARANTEED BUSINESS LOAN FOR FRANCHISE ACQUISITION
In the case of purchasing an existing business or franchise, an appraisal of existing assets and leaseholds provides the basis of collateral for your new SBL startup loan.
In business, you don't necessarily get all the changes you need to be successful, so government loans provide a solid base on which to start, operate and grow your company or franchise.
INTEREST RATES ON GOVERNMENT LOANS
We've been somewhat amused for years because clients always want to discuss the ' interest rate ' on any new financing they seek for start-ups.
While a rate must be competitive and allow you to, of course, pay the loan, the reality is that start-up financing outside the govt loans is difficult, if not outright possible, to achieve. Yet, the SBL program provides a very competitive rate (3% over prime) and even allows you to repay without penalty. Even traditional financing won't allow you to do that.
THE BENEFITS OF GOVERNMENT LOANS
SBL loans work fundamentally because they are government-guaranteed. Canadian chartered banks offer and specialize in loans like the program because the Canadian government guarantees most of the loan. Almost 8000 businesses annually take advantage of the program. Talk to 7 Park Avenue Financial about your eligibility.
KEY TAKEAWAYS
Eligibility Criteria for Government Loans: Determines who can apply for financing. Essential for understanding the foundational requirements.
Application Process for Startup Loans: Guides through the step-by-step process to apply. Crucial to prepare the necessary documentation and follow the correct procedures.
Types of Government Loans Available: Outlines the various loan options accessible to startups. Helps entrepreneurs find the loan that best suits their business needs.
Interest Rates and Repayment Terms: Details the financial obligations involved with each loan. Important for planning financial management and budgeting.
Benefits of Choosing Government Financing: Highlights the advantages of government-backed financing over other options. Includes lower interest rates, longer repayment terms, and additional support services.
CONCLUSION
Tired of looking for business grants or government grants instead of a startup loan for business owners of Canadian businesses?
If you are looking to turn dreams into reality for your Startup, call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with small business funding from the government for this and other financial solutions
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
How do government loans for startup businesses work?
Government loans for startups offer financial assistance to new ventures, helping cover initial costs. These loans typically come with favourable terms, like lower interest rates and flexible repayment options, making them an attractive option for entrepreneurs.
What benefits do these loans offer over traditional bank loans?
Compared to traditional bank loans, government loans often have lower interest rates, longer repayment periods, and more lenient eligibility criteria. They may also offer resources and support for business development.
Are there specific industries or types of businesses that benefit most from government loans?
While government loans are available across various sectors, startups in technology, healthcare, and green energy often find these loans particularly beneficial due to the emphasis on innovation and development in these fields.
How can I improve my chances of getting approved for a government loan?
Improving your loan approval chances involves having a solid business plan, understanding the eligibility criteria, and possibly seeking advice from financial advisors or loan officers familiar with government financing options.
What documentation is typically required when applying for a government loan?
Applying for a government loan generally requires a detailed business plan, financial projections, personal financial statements, and sometimes collateral. Precise requirements can vary based on the loan program.
What alternatives exist if my startup doesn't qualify for a government loan?
Alternatives include venture capital, angel investors, crowdfunding platforms, and private loans. Each option has its advantages and considerations, depending on your business's specific needs and goals.
Can government loans be combined with other forms of financing?
Yes, it's often possible to combine government loans with other financing types, like private loans or equity funding, to meet the full financial needs of your startup.
How does the government benefit from offering loans to startups?
By supporting startups, the government fosters innovation, job creation, and economic growth. Successful businesses contribute to a robust economy and increase tax revenues.
How does the interest rate on a government loan compare to commercial loans?
Government loans typically offer lower interest rates than commercial loans, making them more affordable for startups and encouraging business growth.
Can I apply for a government loan if I have a poor credit history?
While credit history is a consideration, government loan programs often have more flexible criteria than commercial loans, focusing on the business's potential and the entrepreneur's plan.
What happens if my startup fails and I can't repay the government loan?
In case of failure, the government may offer restructuring options for the loan. However, the specifics depend on the loan agreement and might involve liquidating any collateral pledged.
