Over the past 10 years, the Government of Canada has made it possible for over 63,000 borrowers to receive a sum amount of $9.5 billion in asset-based financing. So, there’s no really wondering why the economy in Canada is currently powered by SME’s.
If you’re running a small business, there are a few reasons why you might find the need for a small business loan. Government-granted loans for your business may have their unique benefits, making them a suitable choice for borrowers with specific preferences and needs.
Find out what you need to know about government loans by reading through this quick, concise guide.
In essence, a government loan is much like any other type of loan – it grants you a sum of requested money in order to serve the purpose you state in your application. If you’re applying for a government loan for your small business, then the purpose of your request should be towards improving your SME.
Government loans for small businesses in Canada are granted by the Canada Small Business Financing Program. They grant business loans for enterprises with a gross annual income of $10 million or less. As long as your business isn’t an agricultural business, non-profit, charitable, or religious, then you can apply for this type of small business loan.
The process of securing a small business loan for your enterprise is fairly simple. For the most part, the entire application will be coursed through any eligible financial institution. These lenders will review your application and make the approval based on your eligibility to pay off the loan. Once the funds are disbursed into your account, the lender will list your transaction under Innovation, Science, and Economic Development Canada.
Of course, as with any other loan, you will need to submit specific requirements to help the lender factor out your eligibility. Some of the requirements you might have to have at the ready include:
Showing your lender that you’d be able to make more than the loan amortization will help demonstrate your eligibility. Often, lenders will feel more confident granting loans to business owners who can generate more than just their amortization on a monthly basis.
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