Community Futures Network of Canada
Highlights
This program is designed specifically for businesses like yours in rural and remote communities. It offers small business loans, tools, training, and events to help you start, expand, franchise, or sell your business. By applying, you gain access to resources that can significantly boost your business growth and sustainability.
Key Benefits:
- Flexible Financing Options: Receive loans tailored to your needs, with faster turnaround times than traditional banks.
- Comprehensive Support: Access to training and tools that can enhance your business operations.
- Community Focus: Local boards consider unique factors affecting your business, ensuring more personalized support.
Why Apply?
- Government-Backed Loans: Enjoy the security of loans supported by the government, making them more reliable.
- Enhanced Growth Opportunities: Use the funds for operating expenses, new equipment, software, and more.
- Ease of Qualification: The program is designed to be accessible, making it easier for you to qualify and benefit from the support offered.
Applying for this program can provide the financial and developmental support your business needs to thrive in your community.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed at 3% per annum.
Eligible Expenses:
- Purchase of equipment.
- Leasehold improvements.
- Working capital.
- Intangible assets such as patents and trademarks.
Ineligible Expenses:
- Real estate purchases.
- Personal expenses.
- Debt refinancing.
Fees:
- Application Fee: $100.
- Administration Fee: 1% of the loan amount, included in the interest rate.
- Document Preparation Fee: $150.
Qualifications
- Must be a small business.
- Must be located in a rural or remote community in Canada.
Business must be interested in starting, expanding, franchising, or selling.
Disqualifications:
- Businesses not located in rural or remote communities.
Description
This program offers your business a chance to borrow up to $1,000,000. You can use up to $500,000 of this amount to buy equipment or improve your rented space.
Eligible uses include:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For other costs like software or working capital, you can receive up to $150,000.
The federal government guarantees 85% of the loan, providing a significant security net for your business.
Flexible repayment options are available. You can choose between a variable interest rate, a fixed one, or a combination of both.
You have up to 15 years to repay the loan, regardless of what you spend it on. This gives you ample time to manage your finances effectively.
Program Steps
Gather Necessary Information:
- Collect basic information about your business, including your business name, address, and contact details.
- Prepare a brief description of your business and its operations.
Prepare Required Documentation:
- Financial Statements (last two years)
- Business Plan
- Proof of Business Registration
- Personal Identification for all owners
- Tax Returns (last two years)
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
Visit Your Local Community Futures Office:
- Find the nearest Community Futures office by visiting their website or contacting them directly.
- Schedule an appointment with a business advisor to discuss your application.
Complete the Application Form:
- Obtain the application form from the Community Futures office or their website.
- Fill out the form with accurate and complete information.
Submit Your Application:
- Submit the completed application form along with all required documentation to your local Community Futures office.
- Ensure that all documents are properly organized and labeled.
Attend an Interview:
- Be prepared to attend an interview with a Community Futures business advisor.
- Discuss your business plan, financials, and the intended use of the funds.
Review and Approval Process:
- The Community Futures office will review your application and documentation.
- They may request additional information or clarification during this process.
Receive Funding Decision:
- Once your application is reviewed, you will be notified of the decision.
- If approved, discuss the terms and conditions of the funding.
Sign Agreement and Receive Funds:
- Sign the funding agreement provided by the Community Futures office.
- Receive the funds as per the agreed terms and conditions.
Utilize Funds and Report Progress:
- Use the funds for the intended purposes as outlined in your application.
- Provide regular progress reports to the Community Futures office as required.