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Secrets On How To Crack The Government Of Canada Small Business Loan Financing Program

Guest post by: Stan Prokop

Article Overview: Canada Small Business Loans aren’t really that small !Information on the Government of Canada Small Business Loan program . Solid tips and secrets around how the program works . why this type of financing can benefit small and medium sized businesses in Canada .

Secrets On How To Crack The Government Of Canada Small Business Loan Financing Program

Wouldn't you agree a ' secret ' is something 'unknown to many others '... basically ' privileged information'? The essence of those two definitions involves our sharing of information on the Government of Canada Small Business Loan financing program. The bottom line... how could something so great in Canadian business be mis interpreted or not even heard of by so many ?!

Let's explore the mysteries surrounding the program and prove to you why a little expert knowledge can help you 'crack the code ' on the best loan financing program for Canadian Small Business.

And for a good start, what's ' SMALL '. The program actually defines small, so if you are in business and have revenues under 5 Million dollars then you are eligible, and if you are a start up or a new business then your revenue/sales projection should be carefully pointed to being under that amount . P.S. You wont be punished if you over achieve on revenues at some later point in times - Success if allowed!

You can call it a ' secret ' in our case, but its probably better call ' misinformation ' with respect to what the government of Canada Small Business Loan covers. 3 things and only three things. Those three are equipment, leasehold improvements and real estate. (Yes, one of our ' secrets ' we're sharing is that it is generally not known that you can acquire real estate with a government loan under the program.

Is the program popular? Well, you be the judge, as over 950 Million (yes that's million) dollars of financing went into this program last year.

A recent major headline in Canada's financial press referred to the program as being highly criticized for having a lot of ' messy red tape ' and high costs. Want to know a secret? If you carefully follow a detailed simple process your transaction in our opinion will hardly be ' messy '. And, oh yes, about those costs. the rate on the program is 3% over prime . That would put you under 6% in the current early 2011 interest rate environment. If a Canadian business owner thinks he can get financing , with a limited personal guarantee for items such as leaseholds , software, etc at a better rate than that we would like to meet that person .

The program has been around a long time , so many people mistakenly believe the cap on the small business loan financing program is 250,000.00 - guess what, it was raised to 350k during the most recent recession, and our indications are that it will stay at that amount .

It's no secret of course that most business loans in Canada are guaranteed by the owners of the business. Let's also crack the secret code on that one, since you will be pleasantly surprised to know that owners need only provide a 25% personal guarantee on the loan. That's a good thing!

And finally, the secret code # is 7 4 4 1. We repeat 7 4 4 1. That's the number (7,441) of loans made in Canada last year under the small business loan financing program. Would you like to be 7442? Speak to a trusted, credible and experienced Canadian business financing advisor on sourcing valuable funds under this program.

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Article Tags: financing, government Canada Small Business Loan



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re: restaurant start-up - I'm not sure about government grants for restaurants, but my recommendation would be to approach a lender that offers loans under the Canadian Small Business Financing Loan program where the government will guarantee 85% of the loan. You can borrow up to $250,000 to finance equipment and renovations under this program. Restaurants are very risky business, however some of the Chartered Banks will look at restaurants if there is enough of an initial equity investment and you have a solid business plan (experienced management team, good concept and strategic location).
canada resources - I used to have a connection to a franchise consultant in Canada at "Franchise Officer" in Toronto. I wish I could remember his name ( but I can check my files at the office tomorrow). Anyway, he had a lot of connections to banks in Canada. He may know of them and may be able to offer some feedback. If you are looking for a business loan, Canada has similar business loan programs to that of the USA's Small Business Administration (SBA). I think its SLBS in Cananda, and I probably have the list of it's lenders in my office also. Do you think either can be helpful? If so, I can get back to you with this information tomorrow. Let me know!
These maybe the coldest franchises out there: - Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops. WORST FRANCHISE LOAN FAILURES Failure % 1 OBEE'S SOUP SALAD SUBS 55.56% 2 LADY OF AMERICA 41.94% 3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18% 4 COPY CLUB 36.36% 5 ALL TUNE AND LUBE 35.71% 6 PICKERMAN'S 35.71% 7 PHILLY CONNECTION 35.59% 8 ROLY POLY ROLLED SANDWICHES 34.78% 9 COTTMAN TRANSMISSION 34.48% 10 HAIR COLOR EXPRESS 33.33% 11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33% 12 GODFATHER'S PIZZA 33.33% 13 SMOOTHIE FACTORY 33.33% 14 BLIMPIE 31.39% 15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77% Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005
Research & Development Tax Credits - If anyone is involved in any sort of R&D I have a contact that can submit an application for you to the Government of Canada to get back upto 80% of expenses you may have incurred. Best of all - all this at no cost to you. She's worked with companies of all sizes and part of her services, which are included is how to structure yourself in the future to continue to receive these Government Tax Credits. She can even go back to the last three years in your books to get Tax Credits refunds as well. Email me and I can share her details with you.
Re: I need a mailing address for office space in Toronto - Jamie, I hope someone replies that has an idea or even experience with this question. I am in need of the same concept. I need a mailing address in Canada and then register our business with the Canadian Government to begin selling products in Canada utilizing Canadian monies. Someone must have already accomplished this goal - share your success with others. Dennis


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