Canada Small Business Financing loan ( SFBFL)
Government-sponsored loan program that offers up to $1,000,000 Term Loan (of which
$500,000 for equipment, leasehold improvements, intangible assets and working capital, of
which $150,000 for intangible and working capital) to small businesses in Canada.
Key Benefit
Loan Is Guaranteed
85% of the loan is guaranteed by the Federal government.
Previous Purchases Are Eligible
Purchases made within the past 365 days prior to the date of the loan approval are
eligible for financing.
Repayment Options That Work for You
– Floating rate principal plus interest
– Floating rate principal including interest (blended payments)
– Fixed-rate principal plus interest rate
– Fixed-rate principal including interest (blended payments) Terms That Meet Your
Needs
– Amortization for all asset classes, including real property/immovable, equipment,
leasehold improvement, intangible asset, and working capital, up to 15 years
Understanding Business Loans:
– Types of Loans: Business loans can either be a lump sum or a line of credit, each with its own repayment terms.
– Interest Rates: Rates can be fixed or variable, influenced by factors like the lender, loan type, and economic conditions.
– Repayment: Repayments consist of the principal amount plus interest, adhering to the agreed-upon schedule outlined in the loan agreement.
– Loan Terms: Terms vary depending on the lender, including additional fees, repayment flexibility, duration, interest rates, and collateral or reporting requirements.
– Lender Specialization: Lenders may specialize in specific loan types or business categories, like small businesses or commercial real estate ventures.
Considerations Before Applying: Do you need a business loan?
– Assessment: Assess your company’s needs carefully to determine if a loan is necessary and if it aligns with your business goals.
– Plan: Have a clear plan for how you’ll utilize the funds and consider the potential return on investment.
– Financial Stability: Ensure your business is financially stable and capable of managing loan repayments.
How to Obtain a Business Loan in Canada:
– Loan Sources: Banks, online financial institutions, credit unions, and the Business Development Bank of Canada (BDC).
– Eligibility Requirements: Review each lender’s eligibility criteria, which typically include providing documents.
– Proof of incorporation,
– A business plan,
– Financial records, Tax returns, Credit Score
– Net worth statements,
– Insurance policies.