Tweet

What You Didn’t Know About The Canadian SBL Government Small Business Financing Program

Guest post by: Stan Prokop

Article Overview: Information on the government SBL small business financing program in Canada. 6 key areas of the program are defined and clarified for financing success .

What You Didn’t Know About The Canadian SBL Government Small Business Financing Program

SBL? It’s the Canadian Small Business Financing Program and is sponsored by Industry Canada which is an independent part of the Canadian government. It is in our opinion the best program from start up, small, and medium sized businesses in Canada. We're going to tell you why, and cover off 6 things you may not know about the program, providing clarification on each item.



Is it a financial assistance program? Not really, but its certainly a great financing , at solid rates, terms, and even structures that many much larger corporations could not achieve . We love providing our clients with an overview of 6 different elements of the program.



Let’s cover off the six key areas that continually come in the form of questions from Canadian business owners and financial managers. What are those areas of concern? They're as follows: eligibility, loan size, terms, interest rates and fees, pre payment, and finally, what assets can be financed!



Let's dig in. Eligibility. That’s a good place to start, i.e., do you qualify? The SBL small business financing program (also called BIL / CSBF) is open to incorporated or unincorporated businesses in Canada with less than 5 million dollars in actual or project sales. The program covers off 90% of any item you wish to finance based on what is financeable under the program. To qualify you should be a Canadian citizen as an owner of the business, and, in general you should ensure you have a decent personal credit history. Certain credit scores at the credit bureau will allow you to determine if you are acceptable in this area. Any time of business, service or asset based can come under this government loan program.



Loan size... ie how much can we get? That’s the typical question we get from clients. The program actually goes to$ 500,000.00 but that’s for real estate only, all other assets and leaseholds financed under the program cap out at a loan amount of 350,000.00$.



What terms are available under the program? Typically most transactions are done on a 5 year fixed term basis, although in a lot of circumstances a 7 year repayment term can be requested. That 7 year payment term will definitely lower your monthly payment and make cash flow work better for you when you need it.



Many clients assume because the SBL small business financing program often finances start ups and weaker companies in terms of assets and historical performance that rates are high for the loan. You couldn’t be more incorrect as rates are at 3% over prime, and the one time processing fee of 2% can often be also financed as part of the loan.



99% of financing in Canada for items such as leases or term loans, etc come with no pre payment options .Again, here our program shines, as pre payment can be made at anytime, without, you guess it , any penalties . It can’t get any better.



If there is one item of confusion constantly in our clients minds it’s the issue of what can be financing under and SBL loan. It is not a cash loan, and the only assets that can be financed are equpment, software, leaseholds, and real estate.



What do you think? Do you agree with us that this program is a solid one ?We certainly think so, and if you're interested in more info seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to prepare a successful summary and application . It's Canadian business financing with a spin on win/win!

Related Articles
  What’s So Little About the Small Business Government Loan In Canada ! SBL Guaranteed Financing
  Why Is The Canada Government SBL Loan For Small Business A Canadian Success Story
  Are You Eligible For The Canadian Government Small Business Loan
  All You Need To Know About Canadian Government Small Business Loans – BIL Business Improvement Financing
  7 Myths Of The Canada Government Small Business Loan – Mom Never Told You This!
  Simple Question – Is the Canadian SBL Government Small Business Loan Financing Right For You?
  Navigate the Canada Small Business Government Loan - Successful SBL Financing
  The Power Of The Government of the Canada small Business Financing Loan - SBL 101 !
  Canadian 21st Century Financing – Utilizing Government Small Business Loans - Why an SBL Loan Is Right For You
  Start Up To Established Company – Who Qualifies for The Canadian SBL Government Loan - A Great Business Loan For Your Firm
  Secrets On How To Crack The Government Of Canada Small Business Loan Financing Program
  Understanding The Canadian Government Business Loan - Federal SBL Loans Work For New & Existing Businesses
  Wondered How The Canada SBL Government Business Loan Works?
  Is There A Small Business Loan From Government ? Yes, Here’s Why Canadian SBL Loans Work !
  Why The Canada Government Small Business loan Is Your Best Bet For Start Up Financing
  A ‘ How To ‘ Primer On Canada’s Government Loan . SBL Small Business Financing Makes Sense
  Financing Your SR &ED Tax Credit in Canada – Can you get a SR ED loan? Yes you can!
  Are You Eligible? Canadian Government Small Business Loan Qualifications – SBL Financing Is The Funding You’re Looking For !
  How To Get A Government Small Business Loan In Canada – SBL Business Financing
  Financing ? Eligible For An SBL ? – Why You Should Investigate the Canadian Small Business Government Loan

Article Tags: government, sbl, small business financing program



Related Forum Posts
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).
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
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Research & Dev Tax Credit - at No Cost (Canada) - Brian, I have a colleague that can provide you guidance and even assist in maximizing a R&D Tax Credit from the Government of Canada (If you are Canadian). All this at No Cost to You. I know her well and have referred other people to her. She's got plenty of experience in the field. If you're interested (anyone else on this forum too) just send me a PM and I will share her details with you.
Re: Can someone explain Search engine optimization to me? - Hi, Ask yourself, "What is the goal of a search engine like Google?" A search engine's goal is to provide the most related (or best) web page results when someone searches. Do you think people are searching for "Auction Cars Government" or "Government Car Auction." In fact type those keywords into Google with the quotation marks. You will find that Google gives different results for each keyword phrases. Granted you get many of the web pages ranking the same but there is a difference. My answer is, use "Government Car Auction" or even "Government Seized Car Auction" because that is what people are searching for. That is how the majority of the indexed pages use. That is what makes sense when you read the phrase. Jeff


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Executive Blind Spots

Make Small Commitments. Get Big Changes.

TOP Level Selling

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.