HELPING SMALL BUSINESSES GET LOANS
The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders. Over the past 10 years, small businesses have received over $9.4 billion in asset-based financing representing over 76,000 loans made.
WHO IS ELIGIBLE?
Small businesses or start-ups operating for profit in Canada, with gross annual revenues of $10 million or less. Not eligible under this program are farming businesses (for a similar program for the farming industry, visit www.agr.gc.ca), not-for-profit organizations, or charitable and religious organizations.
To qualify for financing, you must:
Demonstrate realistic market and sales potential
Provide a solid business plan
Have experience or expertise in your chosen field
Demonstrate key personal characteristics of a successful entrepreneur
Have a competent management team
Have a reasonable financial investment in the enterprise
What Are the costs?
The interest rate is determined by your financial institution and may be variable or fixed.
Variable rate: The maximum chargeable is the lender’s prime lending rate plus 3%.
Fixed rate: The maximum chargeable is the lender’s single family residential mortgage rate for the term of the loan plus 3%.
A registration fee of 2% of the total amount loaned under the program must also be paid by the borrower to the lender. It can be financed as part of the loan.
The registration fee and a portion of the interest are submitted to Innovation, Science and Economic Development Canada by the lender to help offset the costs of the program for the government.
Project’s Link: http://argconsultingserv.ca/