Getting a Canadian Small Business Loan
As with setting up a small business anywhere, starting a small business in Canada needs determination, much motivation and business know-how and of course, much needed capital. If you are in need of capital, a Canadian small business loan is one of your answers. The Canadian government will help you in starting a small business.
Canadian small business loan program
The Canadian small business loan program will help you in getting your loans from financial institutions by sharing the risk with the lenders. Those who are eligible for the program are small business which can profit with gross annual revenue of $5 million or less. Farming business, non-profit organizations, charitable trust and religious organizations are not eligible for a Canadian small business loan. This type of loan can provide up to $500,000 of financing and from this no more than $350,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment.
Qualification for a Canadian small business loan
If you pass the qualification for a Canadian small business loan, you will apply for a loan at your bank then your bank will decide to grant you a loan. If this will happen, they will register your loan with Industry Canada. The list of lenders are ATB Financial, Bank of East Asia, Bank of Montreal, Caisses populaires Acadiennes, Caisses populaires de l’Ontario, Canada’s Credit Unions, Canadian Imperial Bank of Commerce, Canadian Western Bank, GE Capital Financial Services, HSBC, Laurentian Bank of Canada, Mouvement des caisses Desjardins, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Canada Trust.
Another program where you can get a Canadian small business loan is through the Canadian Youth Business Foundation which is a national charity that provides young entrepreneurs with business capital. Young entrepreneurs from ages 18 to 34 may get up to $15,000 as a start up capital with flexible three to five year repayment schedules. When getting a Canadian small business loan, entrepreneurs will need to attend to a 2-year mentoring program where they are matched up with dedicated business mentors or business professionals to guide them in getting their Canadian small business to grow.
