Helping small businesses get loans

 By sharing risk with lenders, the Canada Small Business Financing Program makes it easier for small firms to obtain loans from financial institutions.

Small firms have gotten nearly 56,000 loans totaling $10 billion in the last ten years.



Eligibility

Small enterprises or start-ups with gross yearly revenues of less than $10 million in Canada.

Farming enterprises are not eligible for this programme (for a similar programme for the farming industry, visit the Canadian Agricultural Loans Act Program)

Available financing

A single borrower can borrow up to $1,000,000, of which no more than $350,000 can be used for leasehold improvements or improving leased property, as well as purchasing or improving new or used equipment.

How to apply for a loan

The programme is delivered by financial institutions, and they are exclusively responsible for loan approval.

Consult a financial officer at any bank, caisse populaire, or credit union in Canada about your company needs. Your loan application will be reviewed by a financial officer who will assess your business idea and make a judgement. The financial institution will disburse the money and register the loan with Innovation, Science and Economic Development Canada once the decision to lend financing under the programme has been made. (Find a local lender)

What can be financed

The following expenses can be financed with a loan:

  • Land or structures utilised for business reasons are purchased or improved.
  • acquisition or enhancement of new or secondhand equipment
  • a tenant's purchase of new or existing leasehold improvements, such as upgrades to a leased property

For instance, you could use a loan to fund:
  • Typical expenditures to buy a franchise include commercial vehicles,
  •  hotel or restaurant equipment, 
  • computer or telecommunications equipment,
  •  and software production equipment.
You cannot use a loan to finance items such as:
  • goodwill
  • working capital
  • inventory
  • franchise fees
  • research and development
Financing costs

Your financial institution sets interest rates, which might be variable or fixed.
  • Variable:The maximum levied is equal to the lender's prime lending rate + 3%.
  • Fixed: For the length of the loan, the maximum payable is the lender's single family residential mortgage rate + 3%.
The borrower must also pay the lender a registration fee of 2% of the entire amount borrowed under the scheme. It is possible to finance it as part of the loan.

Conclusion

We may operate in both existing and emerging markets at any time during the loan lifecycle. We are capable of handling both simple and complex large syndicate transactions. To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Business Loan Online Apply if you have any more inquiries.

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