Exploring Government SBL Loans In Canada . The Can and Can’t Of The Business Improvement Loan

Government SBL Business Loans in Canada. You can... No you Can’t. What we mean of course is that the program is limited in some respects so lets clarify for Canadian borrowers what they can and in fact can't do with the BIL program - its the acronym for the federal Business Improvement Loan' program .

For a starter it’s available to all business organizations. When starting business entrepreneurs have to choose an organization structure; that includes proprietorship, partnership, and corporation and or Limited Liability Company. The good news is there is no discrimination when it comes to the SBL loan, in fact all types of business organizations, as noted above, are in fact eligible to receive financing under the program

Probably the one miscellaneous point we can make under types of business organization is that is comes as a surprise to many that you don't have to be incorporated to be eligible for the SBL loan. Naturally if you are in business, and projecting to make profits, and own assets and enter into contracts it sure makes sense to incorporate; but that's a discussion for another day.

Most Canadian business owners and financial managers in fact feel that any form of debt is ' expensive ‘. Naturally, similar to our personal finances, there is ' good debt ' and ' bad debt '. Mortgages = good... Credit Cards... well you know.

As you grow or start a business, build a new facility, bring out a new product etc you require different levels of management. Naturally borrowing for financing requires a new level of management for your firm - your lending partner has just joined the team!

That's why when business in Canada entertains the idea of government sbl loans it’s fairly easy to understand the implications and benefits

Where things can go awry in the BIL business improvement loan process is very simply... the application process. We can't count the hours some clients had already spent in both their time, as well as loss of credibility in what should be a straightforward process- identifying what funding you need and why you need it!

The good part about government business loans, aka the ' SBL LOAN ' is simply that there is no confusion about looking for a lender. That’s because the government, as a major guarantor of your loan, has appointed certain Canadian financial instructions as the facilitators of the loan.

So what can and can't the SBL do for you or your firm, start up, or otherwise, (as long as your revenues are under 5 Million dollars.

What you ' can' do is finance real estate, start up a business, buy equipment, or buy an existing business under an asset purchase scenario.

What you ' cant ' do is borrow for working capital or refinance existing debt.

It's as simple as that, so consider speaking to a trusted, credible and experienced Canadian business financing advisor on getting a fast track to government SBL loan success.