Loans
Corporate and private business loans may be granted to any member in good standing who offers the required security, such as a real estate mortgage, chattel mortgage, marketable securities, etc.
For more information please call the Commercial Business Development Department at 1-855-765-2822
COMMERCIAL LOAN under the Canada Small Business Financing Program
Our Credit Union offers commercial loans under the federal government’s Canada Small Business Financing Program.
The CSBFP loan is available for eligible small to medium sized businesses and is being offered at:
- very attractive interest rates,
- variable or fixed,
- terms up to 10 years.
How to apply for a loan?
Visit your Credit Union branch and discuss your business needs with the Branch Manager or Loan Officer.
After reviewing your business proposal, our Credit Union will make a decision on your loan application. Once the decision is made to offer financing under the program, the loan will be registered with Industry Canada.
The main objectives of the Canada Small Business Financing Program are:
- to help new businesses get started;
- to help established firms make improvements and expand;
- to improve access to loans that would not otherwise be available to small or medium sized businesses;
Who is eligible?
Small businesses operating for profit in Canada, with gross annual revenues of $5 million or less.(NOT eligible under this program: farming businesses, not-for-profit organizations, or charitable and religious organizations.)
How much financing is available?
Up to a maximum of $250,000 for any one business.
What can loans be used for under this program?
Loans can be used for financing up to 90% of the cost of:
- purchasing or improving land, real property or immovables;
- purchasing leasehold improvements or improving leased property; or
- purchasing or improving new or used equipment.
For example, you can use a loan to finance:
- building and lands
- commercial vehicles
- hotel or restaurant equipment
- computer or telecommunications equipment and software
- production equipment
You cannot use a loan to finance items such as:
- goodwill
- working capital
- inventories
- franchise fees
- research and development
What are the costs?
The interest rate is determined by your financial institution. The interest rate may be variable or fixed:
- Variable rate: The maximum chargeable is the lender’s prime lending rate plus 3%.
- Fixed rate: The maximum chargeable is the lender’s residential mortgage rate for the term of the loan plus 3%.
A registration fee of 2% of the total amount loaned under the program must also be paid by the borrower to the lender. It can be financed as part of the loan.
The registration fee and a portion of the interest are submitted to Industry Canada by the lender to help offset the costs of the program for the government.
What are the terms of the financing?
Lenders are required to take security in the assets financed. Lenders also have the option to take an additional unsecured personal guarantee, which cannot exceed 25% of the total amount loaned.
