The ' SBL’ is the common name for Canadian government small business loans. It's a solid way to start or grow a business, and in its case small is relative, as the revenue cap on the program is 5 Million dollars in projected or actual revenue.
In our experience with our clients the loan is best suited for start ups, acquisition of a franchise, or adding equipment and leaseholds to an existing business.
There are numerous misconceptions around the program, one of which is that the loan is in the form of cash or working capital financing. Bottom line, not the case!
Can an SBL loan avert a financing crisis for the owner/entrepreneur? Quite often if can as it’s a substitute for traditional bank financing which comes with a higher level of criteria for approval.
While business owners think of our Canadian chartered banks as still the lowest cost and trustworthy type of financing it is comforting to know that it is the banks themselves that administer the program for industry Canada. That’s the department that administers and manages the program.
In fact the ' bank' is in fact the ONLY place to get an SBL loan.
We find it somewhat ironic that often the biggest challenge in getting Canadian government small business loans is the challenge of finding a banker that understands and fast track the program. As the majority of bank lending in Canada, if not all, has moved to major commercial centers or the head offices of the banks themselves its difficult to find a banker that is ' on board ' with getting your financing approved under the program. In this case consider seeking out an expert advisor in this area that has a track record under the program.
Successful loans under the program happen when you can articulate a thought out need for the financing, and demonstrating you will have the cash flow to make payments.
The loan cap for the program is 350k, and amortizations are typically 3-7 years. Two quite incredible features of the program are the limited personal guarantee, as well as pre payment without penalty. Why is that incredible... simply because even larger corporations can't escape those terms and conditions when financing assets.
If we had to summarize for our clients the entire process it would come down to:
Ensuring you understand program criteria
Preparing back up documentation
Presenting the request in a positive manner, outlining management experience and company potential - Here a business plan and cash flow projection is required
A financing crisis can often be averted via a successful SBL loan financing. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you loan needs in this program.
Stan Prokop [http://www.7parkavenuefinancial.com/stan-prokop]
In our experience with our clients the loan is best suited for start ups, acquisition of a franchise, or adding equipment and leaseholds to an existing business.
There are numerous misconceptions around the program, one of which is that the loan is in the form of cash or working capital financing. Bottom line, not the case!
Can an SBL loan avert a financing crisis for the owner/entrepreneur? Quite often if can as it’s a substitute for traditional bank financing which comes with a higher level of criteria for approval.
While business owners think of our Canadian chartered banks as still the lowest cost and trustworthy type of financing it is comforting to know that it is the banks themselves that administer the program for industry Canada. That’s the department that administers and manages the program.
In fact the ' bank' is in fact the ONLY place to get an SBL loan.
We find it somewhat ironic that often the biggest challenge in getting Canadian government small business loans is the challenge of finding a banker that understands and fast track the program. As the majority of bank lending in Canada, if not all, has moved to major commercial centers or the head offices of the banks themselves its difficult to find a banker that is ' on board ' with getting your financing approved under the program. In this case consider seeking out an expert advisor in this area that has a track record under the program.
Successful loans under the program happen when you can articulate a thought out need for the financing, and demonstrating you will have the cash flow to make payments.
The loan cap for the program is 350k, and amortizations are typically 3-7 years. Two quite incredible features of the program are the limited personal guarantee, as well as pre payment without penalty. Why is that incredible... simply because even larger corporations can't escape those terms and conditions when financing assets.
If we had to summarize for our clients the entire process it would come down to:
Ensuring you understand program criteria
Preparing back up documentation
Presenting the request in a positive manner, outlining management experience and company potential - Here a business plan and cash flow projection is required
A financing crisis can often be averted via a successful SBL loan financing. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you loan needs in this program.
Stan Prokop [http://www.7parkavenuefinancial.com/stan-prokop]
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