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