Wanted ! Canadian Companies Looking For The Government Loan For Small Business – ‘ SBL Loans ‘

Updated: May 23, 2011

Do you equate business loans and the word ' success ‘in the same sentence when you think of your chances of business financing success? Most clients we meet don't! They recount countless challenges in meeting their financing needs from what we term as traditional financing sources.

So, time to give up. Never, we say. One of the most viable options you can explore are SBL business loans for your company. They are offered (perhaps the better word is sponsored) by the federal government and the rates, terms and structures of this small business loan beats anything out there, and we'll show you why.

A word of caution though - you need to invest a little bit of time in understanding two key elements of the program - first , what it offers, and secondly, how you get to the goal line .. Quickly! (Many clients we meet are frustrated by their timelines in achieving this financing - you don't have to be in their shoes if you follow our advice)

So, what is the program and what does it finance? That seems like a good start. The SBL government loan - small business is sponsored by the federal Industry Canada department. The program has been in place for many years, and last year almost hit 1 Billion dollars in financing for your competitors. (We want to put you on that same boat!) . The programs official name is the BIL program, and it is a term loan, typically five or seven years in duration, at rates of 3% over prime.

While many larger corporations are required to provide full personal guarantees of owners for their business financings the SBL loan does not, requiring only that the business owner guarantee only 25% of the loan amount - how about that!.

Misunderstanding. That's what we run into a lot when we explain to clients what the loan can be used for. Unfortunately it is not a cash flow, but a loan that can be used for 3 separate categories of assets, equpment, leaseholds, and real estate also. Our own experience is that it is rarely used for real estate, but it's nice to know that that facility is available to your firm.

Timelines. Time is money - who hasn't heard that one? You can easily facilitate your SBL utilizing the motto of the Boy Scouts of Canada - ' BE PREPARED!'

When you are ready to commit to the loan ensure you have a crisp business plan ready, one that addresses the needs of your business and has a financial model in place showing repayment of the loan. Your own respectable personal credit rating is key also, and the loan typically requires a credit bureau score of 650 to gain approval .

While we speak in terms of a government loan the reality is that the feds charge our chartered banks with the actual administration of the loan - so in actuality the loan is available on almost ever street corner in Canada - where there is a chartered bank branch of course !

Featured Research
  • 10 BI Myths Busted

    The Business Intelligence (BI) and analytics market is expected to grow to $20 billion by 2019. Modern BI software systems are quickly becoming a vital business growth tool and bring massive benefits to businesses, large and small. more

  • The Role of Self-Service in Modern Contact Centers

    By 2020, 85% of customers' relationships with companies will be managed without any contact with human services representatives. What does that mean for your business? The data shows that companies need to offer effective self-service options in order to remain competitive. However, many contact centers are confused about how their core contact center software fits into self-service. more

  • 7 key questions to ask any ERP provider

    Having a fast-growing business is good. Having to overhaul your technology every time you need to scale is not. Upgrading to a more complete Enterprise Resource Planning (ERP) solution can help, but how do you ensure the solution you choose is exactly what you need? To help you with your search, we’ve pulled together 7 key questions every fast-growing business should ask before choosing a cloud-based ERP solution, including: more

  • How Finance Leadership Pays Off

    Oxford Economics recently surveyed 1,500 finance executives and it’s clear that small and midsize companies are growing significantly faster than larger companies. But, there are also big opportunities for finance to increase efficiency, boost financial performance, and work more strategically. Why is that? more

  • Professional Services Audience – Improve Profitability Infographic

    As a Professional Services Organization (PSO), you know the importance of customer satisfaction. In fact, 47% of PSO leaders say managing changing customer expectations is their top challenge. That’s why many firms are engaging smarter project management technology, even before deals are signed, to ensure project profitability. How are these leaders utilizing technology? Find out now. more