Government Loans accessibility in Canada often comes as a shock to the company owner/entrepreneur. Many customers we talk originally don’t seem to understand how the ‘ SBL ‘ loan suits into the little company banking structure in Canada.
Let’s analyze what we think you will consider an enjoyable shock when it comes to finding the accessibility and abilities of this loan. Let’s dig in.
When it comes to starting, or building a company in Canada the business proprietor is often involved about the part of personal assures. How does the problem of the ‘PG’ (personal guarantee) fit in when it comes to the BIL/CSBF loan program? By the way that’s the official phrase for this loan system, which is applied by INDUSTRY CANADA in Ottawa.
But back to our ‘assurance’ problem. It’s really an ‘excellent news/ bad news’ situation here. The bad information is that a personal assurance is needed under this loan system. The excellent news: It’s only for 25% of your amount borrowed – with highest possible loans under this system being $ 350,000.00.
Why should small loans via the government system have so much entice the business proprietor? They are clearly not for the ‘big boys’. It’s all about helping little company, such as dining places, service companies, mfg companies, etc. Actually the government goes so far as to restrict the actual or estimated earnings to 5 thousand dollars when it comes to qualifications and program for the loan.
One other important technical part of the loan is that while the system was made and developed by the government they do not run it on a regular basis. That’s the job of Canada’s chartered banks and a few other misc. institutions – but mainly our banking institutions.
So it seems that the best place to go to both learn and implement for the SBL loan is any local banking institution division, right? We wish that were the case, but in our many years of experience in directing customers through the system has shown us that unless you have an knowledgeable consultant directing you through the process your chances of achievements are seriously reduced.
It’s almost comical, and somewhat interesting that in the U.S., where a identical system prevails, the guidelines state that the business proprietor must in reality be officially converted down by the lender before they can implement for the SBL loan. As one author has so well put it ‘ I’ve never met a business proprietor who could not get converted down for a banking loan by the lender ‘!!
So what’s needed when it comes to implementing for presidency loans with a strong chance of acceptance success?
The fundamentals are: a starting balance piece and income projector screen, a personal declaration of finances from the owner/ owners (net worth statement), a professional conclusion or company strategy plan, and an itemized product to be funded.
There’s a lot of false information, allows call it ‘ city legend’ around government loans. Here are some illustrations-
• It takes too long to apply/get accepted (WRONG – A complete program is usually adjudicated within a few company days)
• You need outside security as in many other types of loans (WRONG – No outside security is required)
• The SBL Loan is just like a company history of credit (WRONG – It’s a phrase loan that finances only two groups of resources – equipment and leasehold improvements)
• You can’t purchase a current company with the BIL loan (Wrong – you can!)
If you find that you’ve came upon one of Canada’s best kept tricks – the Government Small Business SBL Loan and want to ensure your accessibility this excellent system (7000-8000 loans are accepted each year for Immeasurable $) search for out and talk with a reliable, reliable and knowledgeable Canada company funding consultant who can assist you in obtaining this excellent funding system.