This program is a great opportunity for your business to secure the financing you need. By participating, you can access up to $1.15 million in loans, with $1,000,000 available for term loans and an additional $150,000 for lines of credit. This funding can be used for a wide range of business needs, including purchasing or improving land, buildings, equipment, and even covering intangible assets and working capital costs.

Why apply? The program offers several advantages over traditional loans. The government shares the risk with lenders, making it easier for you to get approved. Interest rates are competitive, with a maximum of the lender's prime rate plus 3% for term loans and prime rate plus 5% for lines of credit. Additionally, the registration fee is only 2% of the loan amount, which can also be financed. This means you can focus on growing your business without worrying about high upfront costs.

What's in it for you? Approval for this program can significantly boost your business by providing the necessary funds to expand operations, purchase new equipment, or cover day-to-day expenses. The application process is straightforward, involving a discussion with a financial officer at your bank, credit union, or caisse populaire. Once approved, the funds are disbursed quickly, allowing you to invest in your business's future with confidence.

Type of Financing: Loan

Repayment Terms and Interest Rates:

• Term Loans:
  • Floating Rate: Maximum chargeable is the lender's prime lending rate plus 3%.
  • Fixed Rate: Maximum chargeable is the lender's single-family residential mortgage rate for the term of the loan plus 3%.
• Lines of Credit: Maximum chargeable is the lender's prime lending rate plus 5%.

Eligible Expenses:

• Purchase or improvement of land or buildings used for commercial purposes.
• Purchase or improvement of new or used equipment.
• Purchase of new or existing leasehold improvements (renovations to a leased property by a tenant).
• Intangible assets and working capital costs.

Ineligible Expenses:

• The funds cannot be used for farming businesses.

Fees:

• Registration Fee: 2% of the total loan amount, payable to the lender. This fee can be financed as part of the loan.

This program helps your business get loans from banks by sharing the risk with lenders. Over the past decade, it has provided over 53,000 loans, totaling $10 billion.

You can borrow up to $1.15 million. This includes up to $1,000,000 for term loans, with a maximum of $500,000 for leasehold improvements or equipment. You can also get up to $150,000 for intangible assets and working capital. Additionally, you can access up to $150,000 for lines of credit to cover day-to-day expenses.

Interest rates are competitive. For term loans, the rates can be floating (prime rate + 3%) or fixed (mortgage rate + 3%). For lines of credit, the rate is prime rate + 5%. There's a 2% registration fee, which can be financed. The loan terms are flexible, and lenders may require security on the assets financed. This program offers a great opportunity to invest in your business and manage your finances effectively.