Are You Eligible? Canadian Government Small Business Loan Qualifications – SBL Financing Is The Funding You’re Looking For !

Curious About SBL Government Financing Loans?



Information on the government small business loan ( SBL ) financing program in Canada . Start Up ? In Business ? Here’s how to qualify for this great funding program .



It's actually not that complicated. The Government Small business loan financing program makes funding for your new or established Canadian company accessible and on terms that even larger more established firms simply can’t often achieve.

Funding under the SBL program obviously has a long term gain for Canada as the 7000+ firms that use the program every year create jobs, pay taxes, etc.

Clients sitting down with us only want to know one thing. Are they eligible?! Eligibility for small business loan financing therefore allows them to reap the financial benefits of the program.

So, eligibility. Its a simple case of knowing how the loan guaranty program works , what options are available from a structure viewpoint, and what exactly does the program finance ?

Great questions. Let’s get some answers going! The government small business loan financing option was developed for businesses just like yours. You can either be a start up, or an established firm already in business, with the one caveat being that your revenues must be under 5 Million dollars annually.

Because you may not be eligible for financing at a Canadian chartered bank doesn’t mean you aren’t qualified to receive the SBL loan. That’s because the government guarantee on the loan, by its nature, allows the bank to now provide you with the financing you need for your business.

So when actually are you eligible ?The answer is ' all the time' as the program has been in place for years and allows you to obtain financing for real estate, equipment and capital assets, including software, and even leasehold improvements to your business facility . Many restaurants and franchises use the program for the initial funding of their transaction.

So whets with the guarantee? As we referenced it’s the federal government that guarantees the funding to your chartered bank or other financial institution that participates in the program. That’s one of the big misconceptions, because the same bank that couldn’t provide you with ' traditional' financing because you were a start up, didn’t have enough collateral, etc is the entity that both provides and administers the loan. Talk about irony.

Restrictions on the use of loan proceeds is actually one of the continually misunderstood aspects of the government small business loan. You cannot use the loan for working capital or things such as inventory ; it must be used for our three aforementioned categories - real estate, assets, including software, and leaseholds.

The general terms of the program are as follows, a very limited personal guarantee, 5-7 year term amortizations, and rates at approximately 3% over the Canadian prime rate of interest. By the way that’s a fabulous rate for a start up, wouldn’t you agree, if in fact you are utilizing the program for a new business? It’s also important that the owners of the business have a decent personal credit history, as validated by their personal credit score at the credit bureau.


How can you quickly determine your eligibility without wasting time, monies and resources? Its simple, speak to a trusted, credible and experienced Canadian business financing advisor who can quickly steer you through eligibility and yes, approval!


Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :



http://www.7parkavenuefinancial.com/government_small_business_loan_financing_funding.html

Are You Eligible For The Canadian Government Small Business Loan?

Use Government SBL Loans For Asset Financing Needs


Information on the ‘SBL ‘ - commonly know as the government small business loan . This program offers some of the best rates, terms and structures for small business financing needs in Canada .



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 securing business financing on terms that rival those of the big boys when it comes to attractive rates, and structures .

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 ' 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 in fact operated in the private sector, by Canadian banks, not the government directly. So where does the government come in then? , ask clients. Simply that they are in fact guaranteeing the majority of the loan. Actual funding is done through your bank.

The challenge we work through with on a daily basis 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 in fact get mixed signals on how the program operates, its benefits, and mostly importantly, how to start the process and get approved quickly!

Let's cover off some of the basic facts. To be eligible for the program your Canadian business, either incorporated or a proprietorship, must have revenues not exceeding 5 Million dollars. Start ups are eligible for the program also.

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 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.

Owners of the business must have reasonable 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.

What does the SBL government small business loan finance? That’s another area of what seems constant confusion when we talk to clients. In fact the program only finances equipment and leaseholds. Software by the way is included in the equipment category. We meet many clients that are under a major misconception on SBL’s - namely that the financing is cash and working capital. It absolutely is not!

How can any business owner in Canada not want to take advantage of financing that can help build and grow their business? Speak to 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. That’s SBL for short!








Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/government_small_business_loan_sbl.html

5 Things You Didn’t Know About The Government Small Business Loan In Canada - SBL Federal Loans Info

Use This Info For The Payoff in Canadian Small Business Financing



Information on common questions surround the government small business loan in Canada . How do these federal loans work and what must business owners need to know to maximize the program .







Can we ask you a simple question? Actually, if it’s ok with you, we'll ask 5 questions, and we trust and hope you will gain some valuable knowledge about the Canada government small business loan. Federal loans under the CSBF / BIL program could be your secret weapon in Canadian business financing.



Ok, so let’s get the questions out of the way first and onward to those answers! Here are our 5 key shares around the program based on questions we continually get from clients.



Why should we finance equipment with federal SBL loans? What are the basic requirements of the program? Can the government small business loan be used to refinance business debt? Can we use the federal loans program for cash flow and working capital? And finally can we purchase a business via the SBL loan?



Great questions, and now hopefully some surprising answers! Here we go.



Equipment and lease financing in Canada are solid alternatives for the financing of your asset acquisitions. Numerous lease finance options are available, so why does it make sense to use the SBL program for equipment financing. For a start the small business loan program in Canada finances 90% of your equipment financing needs, the other 10% comes in the form of your down payment, which the program refers to as your equity in the transaction. Numerous lease scenarios may require either larger down payments, first and last monthly payments in advance, and in some cases might have a higher level of credit due diligence requirements .Equipment can be financing on terms up to 7 years, and typically that type of term may not be available through lease financing scenarios.



So what about those basic requirements of the program? The government small business loan requires the aforementioned 10% owner equity in your financing. Business owners and your business should have a reasonable credit history; you also should be ready to prepare a simple cash flow forecast that allows you to demonstrate repayment of the loan. Typically no other collateral is required for federal small business loans in Canada. We determined over time that it makes great sense to be able to properly demonstrate that you have sufficient management experience in your business and industry, whether you are a start up or an established firm.



On to our third question - can you utilize the loan to refinance existing debt .The short and simple answer is that any debt you wish to refinance in terms of equipment, leaseholds, software, real estate, etc can be financing within a 6 month window. Example - if you bought a major piece of equipment 5 months ago it can be refinanced under the program, bringing additional cash flow and capital into your business.



Can the program be used for cash flow and working capital? Simple answer = No! Unlike the U.S. equivalent of the program the government small business loan is massively understood by many, thinking it’s a cash flow loan. The program only funds equipment, leaseholds, and real estate.



And on to our final question. Can you purchase a whole business via SBL federal loans in Canada .Categorically yes if the business purchase is within the government loan cap you absolutely can purchase a company, competitor, franchise, etc using this program? Some very basic steps apply, including an appraisal of the business you are buying for example.



Well there you have it, 5 answers to common questions we get from clients everyday on Canadian government small business loan. Want more info, or wish to explore other issues pertaining to your financing needs around this great program? Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing benefits of the program.





Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/government_small_business_loan_canada_loans.html

Simple Question – Is the Canadian SBL Government Small Business Loan Financing Right For You?

Could our question on the Canadian government small business loan (commonly called ' The SBL ‘) be any more simple? Is this specialized Canadian lending program right for your company? If you are a Canadian business with fewer than 5 Million dollars in actual or projected revenue we categorically think it is - as always though we'll let clients decide for themselves!

Business loan financing in Canada varies greatly. Structures, documentation on the loan, and guarantees or collateral required vary widely, and we can assure you with certainty that’s an understatement!

The Canadian government, specifically the good folks at Industry Canada (they sure seem nice when they call us at least ...?) sponsor this loan program . The technical name of the program is BIL/CSBF... but we're never one to get too technical.

This type of financing in general serves the lower end of the Canadian business financing scene, and does at a great job of financing business in Canada who otherwise might not be able to qualify. And do you know what the difference is? The rates, terms and structures of this program, compared to almost all other type of financing are... are you ready? better!

What are some of the reasons then that we can say with assurance that this financing is of the best in Canada, whether you are a start up, a franchise, or a established company with sales and profits .

What most Canadian business owners and financial managers don’t immediately realize is that while everyone thinks of this as a government loan the program is actually run on a daily business by Canada’s chartered banks. The challenge in many cases that we've seen with clients is they are unable to find a banker as bullish and excited about the program as we are. (We guess filling out forms is somehow not appealing to all ...?)

Why the program should appeal to banks more, in our opinion, is simply the fact that if a loan is unable to be repaid the government reimburses the bank for 90% of your firm’s loan. So banks are therefore only partially at risk, and that risk is often taken care of nicely by a combination of your 25% personal guarantee, as well as security over the assets financed.

That’s why we are always surprised that the appetite for this type of financing is rarely as large as we think it should be. The program is in place all the time, and is never under any form of suspension, as has happened in the U.S. on occasion.

So why don’t more businesses use the program. We can only offer up a few basic reasons - they don’t know about it, they find filling out forms cumbersome (we’ll fill out a form all day to get the 350,000$ that is in fact the loan maximum!!) or they don’t qualify.

But are those qualifications stringent? Hardly - Business owners need only to have a reasonable personal credit history, they must be willing to guarantee 25% of the loan, and the financing capabilities of the loan are limited to equipment, leasehold and real estate.

We're not telling you to get a government small business loan... we're simply asking you to consider it as one solid mechanism for obtaining the financing you need when other alternatives might not be available .

7441 of your competitors and peers in Canada used the program last year. Maybe you should?

Speak to a trusted, credible and experienced Canadian business financing advisor on why SBL financing just might be right for your firm.




Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sbl_government_small_business_loan_financing.html