Small business loans are provided to small businesses for different purposes by a lender. These loans enable small businesses to get the fund they need as these may have less restrictive requirements. A small business loan could lessen expenses for the business as it may offer other incentives for the borrower.
How to Get Small business Loans in Canada?
It can be a tough job for a small business to get Small Business Loans in Canada. Though you can apply for a small business loan through the Canadian banks but these are traditionally conservative and start-up businesses involve risks. But these banks are not the only sources to get small business capital. If your small venture requires funds, you can explore these Canadian small business loan sources where you may be able to secure funds:
Canada Small Business Financing Program: The Canada Small Business Financing Program has been established to support new start-up ventures and existing businesses to make improvements and expand. This small business loan program offers up to $1 million for any single business. Those businesses having gross annual revenues of $10 million or less can apply for this program at any Canadian bank or credit union in Canada.
BDC Xpansion Loan: If your business meets the criteria, you can get up to $100,000 in durable financing to do things like partake in trade shows, expand e-commerce, build and execute a marketing plan, achieving certifications, and much more. Furthermore, the Business Development Bank of Canada (BDC) can re-advance any paid back segment of the loan opening at a minimum of $10,000.
BDC Startup Financing Program: Through this program, small businesses in the startup or early growth phase i.e. the first 12 months of sales demonstrating realistic market and sales potential can get Small Business Capital. A small business loan of up to $100,000, which may be used for working capital, marketing, and startup expenses, fixed assets, or buying a franchise is sanctioned to the eligible business.
Microloans: Some financial institutions provide Small Business Loans in Canada up to $15,000 assigned for people who struggle to get a traditional business loan. For illustration, Western Economic Diversification Canada provides a microloan program for small business loans to small start-ups all over western Canada.
Aboriginal Business Canada: This program offers non-repayable contributions or small business grants of up to $99,999 for eligible individual entrepreneurs. To apply for this loan program, you must be of Aboriginal heritage and have a feasible business prospect. The secured fund may be used for a start-up and for marketing your small business.
Small Business Capital for Young Entrepreneurs: If you are an entrepreneur between the ages of 18 and 39, various special small business loan programs may help you. Futurpreneur Canada provides some different financing programs to sustain entrepreneurs aged 18 to 39. It also provides start-up small business loans of up to $60,000. Besides, there are several regionally based programs.
So, get prepared by fulfilling all the criteria to get Small Business Capital in Canada.