Native Women's Association of Canada Website

If your business could benefit from risk capital, contact CCIP to determine whether yourcommunity has been chosen to carry out a demonstration project. If it has not, you maywish to approach CCIP or your community economic development officer with aproposal and/or suggestion for submitting a demonstration project to CCIP.11.1 Contact: CCIP Secretariat, 235 Queen Street, Ottawa ON K1A 0H5 Tel: (613) 954-274612.0 PROGRAM: SMALL BUSINESS LOANS ACTNeed a term loan under reasonable conditions to finance the purchase or improvementof fixed assets? Under Canada's Small Business Loans Act (SBLA) you may be ableto get a term loan directly from an authorized lending institution.The loans are available to all businesses operating for profit in Canada -- excludingfarming, charitable and religious enterprises -- that have annual gross revenues of lessthan $5 million. At the discretion of the lender, the loans can be used to finance up to 90percent of the cost of the purchase and improvement of three categories of fixed assets:the purchase of land required to operate the business;the renovation, improvement, modernization, extension and/or purchase ofpremises; andthe purchase, installation, renovation, improvement and/or modernization of newor used equipment.Loans cannot be used to acquire shares or provide working capital.Under the SBLA, the maximum total amount of loans a borrower may have outstandingcannot exceed $250 000. The program also provides for the sharing of loan losses, ifany, on a 15 percent to 85 percent basis between the lenders and the federalgovernment. Borrowers must pay the federal government a one-time, up-front loanregistration fee of2 percent of the amount of each loan. This amount may be added tothe loan.The maximum rate of interest charged by the lending institution cannot exceed theprime rate plus 3 percent for f1oating-rate loans and the residential mortgage rate plus 3percent for fixed-rate loans. This rate includes an administration fee of 1.25 percentwhich is paid back annually to the Crown, in support of its effort to minimize the cost ofthe program. The maximum period over which a loan may be repaid cannot exceed 10years.All chartered banks and Alberta Treasury branches, most credit unions and caissespopulaires, and many trust, loan and insurance corporations in Canada are authorizedto make loans under this program.Pg. 212