CBDC First-time Entrepreneur Loan
Highlights
If you are a new entrepreneur in a rural area of Atlantic Canada, this program is designed for you. The CBDC First-Time Entrepreneur Loan offers up to $150,000 in financing to help you start or buy a business. This loan comes with competitive interest rates and flexible repayment terms, making it easier for you to manage your finances.
What You Get
- Up to $150,000 in financing
- Counselling and training services to help you succeed
- Flexible repayment terms and competitive interest rates
How It Helps
- Start-up costs: Get the funds you need to launch your business.
- Fixed assets: Invest in essential equipment, machinery, or vehicles.
- Working capital: Ensure you have the cash flow to operate smoothly.
- Buildings and land: Purchase or improve your business premises.
This loan is more accessible than traditional lending channels and is tailored to meet the needs of first-time entrepreneurs. By applying, you gain not only financial support but also expert advice to help you become a successful business owner.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- The loan is repayable.
- Competitive interest rates are offered.
- Financing can be in the form of term loans, demand loans, loan guarantees, or equity investments.
Eligible Expenses:
- Start-up costs
- Fixed assets
- Working capital
- Buildings and land
- Furniture and fixtures
- Machinery and equipment
- Vehicles used strictly for business operations
- Franchise purchases
- Leasehold improvements
Ineligible Expenses:
- Personal expenses
- Non-business-related expenditures
Fees:
- No specific fees mentioned. Please contact a CBDC representative for detailed information.
Qualifications
- Must be a new, first-time entrepreneur.
- Must live in a rural area of Atlantic Canada.
- Business must be a startup or an existing business being purchased.
- Both seasonal and year-round businesses are eligible.
Eligible business structures include sole proprietors, limited companies, and partnerships (with majority control by the new entrepreneur).
Disqualifications:
- Businesses not located in a rural area of Atlantic Canada.
- Entrepreneurs who are not first-time business owners.
Description
The First-Time Entrepreneur Loan offers your business up to $150,000. This money can be used for various purposes, such as starting a new business or buying an existing one. You can use the funds for start-up costs, fixed assets, working capital, buildings and land, furniture and fixtures, machinery, and other types of equipment. Even vehicles used strictly for business operations are eligible. Franchise purchases and leasehold improvements can also be covered.
The loan is repayable, but it comes with competitive interest rates and flexible repayment terms. You can choose from term loans, demand loans, loan guarantees, or even equity investments. This flexibility helps you manage your finances better while focusing on growing your business.
Additionally, the program offers counseling and training services to help you become a profitable and self-sufficient business owner. This support ensures you have the knowledge and skills needed to succeed.
Program Steps
Gather Required Documentation: Prepare the necessary documents for your application. These include:
- Business Plan
- Financial Statements
- Details of Intended Use of Funds (e.g., quotes for equipment, renovation costs)
- Personal Identification
- Proof of Residence in a Rural Area of Atlantic Canada
Contact a CBDC Business Advisor: Reach out to a Community Business Development Corporation (CBDC) business advisor. They can provide guidance on the application process and help ensure you have all required documentation.
Complete the Application Form: Fill out the First-Time Entrepreneur Loan application form. Ensure all sections are completed accurately and thoroughly.
Submit the Application: Submit your completed application form along with the required documentation to your local CBDC office. This can often be done online or in person.
Review and Follow-Up: After submission, your application will be reviewed by the CBDC. Be prepared to provide additional information or clarification if requested.
Approval and Loan Agreement: If your application is approved, review the loan agreement carefully. Discuss the terms, interest rates, and repayment schedule with your CBDC advisor.
Receive Funds: Once the loan agreement is signed, the funds will be disbursed to your business. You can then use the funds for approved expenses such as start-up costs, fixed assets, working capital, or other eligible purposes.
Utilize CBDC Support Services: Take advantage of the counselling and training services offered by CBDC to help you manage and grow your business successfully.