Canadian small business loan is a topic that gets many searches on Google. So, let’s check all about Canadian small business financing program act and their rules. It is quite difficult to find finances for new business and if it is small it becomes more difficult. Individual’s family may be supportive and friends may also be good but when it comes to financing a business, even they step back. Also traditional sources like banks and other financing institutes may also seem uninterested when it comes to financing small business.
However, the federal government’s Canada Small Business Financing Program makes it easier for small businesses whether new or old to get finances.
How much fund does this program gives?
One can take up to $1,000,000 of funds for any one business under this program.
Who can qualify for the Canada Small Business Financing Program?
If you wish to qualify for business loan under the Canada Small Business Financing Program, you need to have business for profit in the Canada with gross revenues of $10 million or less. Under this program, charitable trusts, farms and religious organizations do not qualify.
For what can you use the money?
Money taken under the Canada Small Business Financing Program can be used for some specified purposes only. One can use this finance to 90% of the cost of real property or immovables and for either purchasing or improving land. It can also be used for purchasing leasehold improvements or for improving leased property. The funds can also be used for improving the old equipment or for buying the new one.
Hence it is clear that you cannot use the Canada Small Business Financing Program funds for franchisee fees and it cannot be used as working capital. However, the loan funds can be used for old and new business, which is great positive side of the program.
Let us now see how this entire program works:
It is very easy to apply for this program. Even the small business owner can apply for it easily. The entire program is administered by Industry Canada and is delivered to the entire country. If you wish to apply for Canada Small Business Financing Program, you simply have to meet the loans officer and fill up the loan application. You can meet the loan officer at your own bank, credit union or caissespopulaires. If the lender wishes to grant you the loan, he will register your loan with Industry Canada. You have to remember that decision will be of the lender and not of Industry Canada.
What Are the Interest Rates & Fees of the loan?
The interest rate of your loan will be decided by the financial institution, you are dealing with. Your interest rate may be fixed or it may be variable. However, even if the interest rate is variable, it cannot be more than 3% of prime lending rate of the institution. If the interest rate is fixed then too it cannot be more than 3% residential mortgage rate of the institution. Registration fee of the loan is …read more
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