Emergency Loan Program to give small businesses a helping hand
(Photo supplied by Pixabay)
Businesses negatively impacted by the coronavirus can receive up to 20-thousand dollars thanks to an Emergency Loan Program set up by the Community Futures of Fraser-Fort George.
The program offers support to entrepreneurs who have been unable to operate or have remained open at a reduced level for more than five days due to the crisis.
(Photo supplied by Community Futures of Fraser-Fort George)
Community Futures General Manager, Susan Stearns recently spoke with MyNechakoValleyNow.com
“During this time, businesses are being faced with closure or lessened hours because of the COVID-19 epidemic that is going around and we certainly know that this impacts their revenue streams and ability to operate.”
“We certainly realize that some businesses have a stronger cash flow than others and for us, it’s about how do we help sustain small businesses in our community.”
Financing is provided in the form of a repayable loan with relaxed terms and interest rates as follows:
Loan Amount: Maximum up to $20,000 per business based on Business Analyst assessed needs.
- Streamlined Application and Approval Process – increasing approval and turnaround time on the loans.
- The application will consist of:
o Completed Application Form – Specific to this loan program o 3 years of financial statements showing at least one year of profitability with
most recent Corporate T2 or Personal tax filing o Credit Check on the owner(s) and business o Limited security requirements – Personal Guarantees / Co-Borrower and
General Security Agreement
- Waiver of application fee
- Maximum Amortization/Term will be for 60 months
- A pre-approved interest rate of the Bank of Canada Prime + 2% (currently 2.95%) and will be the fixed interest rate for the term of the loan
- No payments for up to first 6 months
- Once the first 6 months have passed, the client can choose to pay interest only for the following 12 months
- Offer 2 months of skip payments per year
- Should greater financial needs be identified, the loan can convert to the usual loan process
- No penalties for early payout.
Any business that:
- Has not been able to operate or has operated at a reduced level for more than 5 days due to the emergency situation.
- Businesses must be able to demonstrate a loss or reasonable expectation of reduction of business due to the emergency situation.
- for-profit: including sole proprietorships, partnerships, incorporated companies, and ranches/farms
- not-for-profit entities: including co-operatives, social enterprises, charitable
- Any level of Government, including Federal, Provincial, Municipalities, Regional Districts, and First Nations
A link to an Emergency Loan Application can be found here.