2013년 11월 23일 토요일

About 'small business government'|Small Business, Government and Microeconomic Problems







About 'small business government'|Small Business, Government and Microeconomic Problems









               If               we               had               to               separate               some               of               the               major               confusion               surround               two               to               three               key               areas               of               the               small               business               loan               from               government               in               Canada               ,               aka               '               SBL               loans               '               it               would               be               quite               easy,               as               clients               seem               continually               mis               informed               about               some               of               the               key               attributes               and               benefits               of               this               program               .
               Let's               get               '               small               '               out               of               the               way               first.

The               Canadian               SBL               loan               underwritten               by               the               government               (more               about               that               later!)               actually               goes               to               $               500,000.00               dollars               from               a               lending               limit.

That's               one               of               the               initial               sources               of               confusion               for               our               clients...

because               the               500k               amount               refers               solely               to               your               utilization               of               the               facility               for               a               real               estate               deal.

All               other               transaction               under               the               program               is               capped               at               350,000.00$.
               In               many               cases               it               actually               might               make               sense               to               do               a               real               estate               deal               under               SBL               loans.

For               example               your               10%               required               equity               under               the               program               is               significantly               less               than               the               25-               30%               or               more               that               is               required               by               other               lending               institutions               under               a               conventional               mortgage               scenario.
               We've               done               a               calc               and               a               500k               mortgage               utilizing               the               SBL               would               run               you               around               5500               a               month               for               a               commercial               transaction.

That               is               a               higher               payment               than               a               longer               amortized               commercial               mortgage               but               consider               the               fact               also               that               your               required               permanent               own               equity               into               the               deal               is               only               10%,               and               you               personal               guarantee               under               the               program               is               actually               only               25%.

Try               getting               that               lower               personal               guarantee               from               another               commercial               lender...

we               dont               think               you'll               be               able               to.
               Let's               circle               back               again               to               what               the               word               small               means               in               a               small               business               loan               from               government               sources.

The               program,               which               actually               is               officially               called               the               BIL               /CSBF               program               actually               stipulates               that               your               current               or               projected               revenues               cannot               exceed               5               Million               dollars               per               annum.
               As               you               can               imagine,               and               as               we               experience,               that               covers               thousands               of               business               in               Canada               that               should               be               accessing               the               program,               but               either               aren't               aware               of               it               or               don't               fully               understand               some               of               the               rules               and               guidelines               of               the               program               .Oh,               and               by               the               way,               almost               7500               Canadian               firms               used               the               program               in               2010...

so               somebody               out               there,               including               your               competitors               perhaps?..

accessed               over               957,000,000.00$               in               capital               in               2010.

So               we               think               it's               about               time               you               got               on               board.
               We               think               the               program               works               for               a               couple               of               great               reasons...

it               usually               can               finance               companies               who               would               not               otherwise               be               able               to               receive               traditional               financing               -               aka               your               '               friendly               chartered               bank               '               ,               and               ,               secondly,               it               covers               the               financing               of               assets               that               you               need               to               grow               (               or               start               )               your               business               .
               The               two               main               asset               categories               that               the               program               finances               are               equipment               and               leasehold               improvements.

That               covers               a               lot               of               what               you               need               to               be               successful.

And               by               the               way               things               such               as               computer               software               are               covered               under               the               program               also.

as               that               generally               falls               under               the               equipment               category.
               So               as               a               Canadian               small               business               owner               do               you               feel               challenged               on               whats               available               and               how               to               proceed               to               successfully               execute               on               SBL               loans               financing.

Speak               to               a               trusted,               credible               and               experienced               Canadian               business               financing               advisor               on               why               the               small               business               loan               from               government,               aka               '               the               SBL               '               will               help               your               firm               go               to               the               next               stage               of               its               growth               or               development.






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