Government Business Loans . How The Sbl Loan Program Can Help Your Company

Canadian business owners / managers might just get some valuable financing assistance from the 800 lb

. gorilla of government business loans - we're referring of course to the SBL loan program in Canada.

When it comes to accessing up to 350k of new capital for your business it pretty well is the only game in town when other forms of traditional financing just seem a bit of a stretch... for the lender. For a qualifying business these loans offer solid rates, terms and structures. The bottom line... affordable and great access to capital!

Most Canadian business arent really aware that the government department known as INDUSTRY CANADA has this loan program in place to help you success in business. And that can be from a start up right up to when you achieve your first 5 Million dollars in revenue. (The 5M is the revenue cap your company or business must be under to qualify for the loan).

Quite frankly the program is one of your best friends for financing items such as equipment, leasehold improvements, computers and application software, and even real estate if that's applicable.

The first thing you need to understand is that INDUSTRY CANADA itself, the ' sponsor ' of the program does not make the actual loans. They charter our Canadian banks to make these loans, and the government underwrites or guarantees most of the loan. As we have said in the past - 'Talk about a great co signer '! Since the banks are assured of payment they of course become much more flexible when it comes to amortizations of the loan, credit approval, and other ratios such as debt to equity.

Naturally this program is geared to supporting business development in Canada - it's no secret that the majority of growth and employment these days comes from the SME sector... That's where start ups evolve, business grows into corporations and people get hired. That's economics 101 we guess.

So what do you have to do to qualify for this the SBL loan program? That's the most often asked question from clients inquiring about government business loans. The basics are a decent personal credit history, a minimum equity down payment of 10 per cent, and the ability to demonstrate your business has the working capital to get out of the start up phase.

The problem arises when the business owner/applicant things the SBL loan program is ' easy ' to get. We're a bit biased - we don't think it's hard, but you do in fact have to have some fundamentals in place. Oh and by the way, many bankers either arent familiar with the program, or are incapable of putting together the application, only because of their lack of interest or experience. So, point taken, seek out a banker or, even better, an independent Canadian business financing advisor who can get you fast tracked to financing success.

To recap, over 8000 business every year are approved under the program. All you need is a business plan and some typical back up information that you would have to supply for any type of financing whatsoever. And don't forget, outside collateral is not required- and you'll be more successful if you demonstrate you have the character and experience to make your business successful.

So, what is all the noise about? It/s the fact that financing you need just might be around the corner.

by: sprokop

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