Save yourself time by skipping the process of looking through countless websites with hundreds of pages that don’t apply to your business needs. This loan guide is specifically geared towards small business owners in B.C., so all you need to do is read the key points and choose the loan that best suits your objectives.
You may also opt for government grants. For additional information on BC grants for small and medium sized businesses, see this article.
A bank loan is great for investing in economic development priorities for the region, as well as helping to kick start a personal investment into yourself. If you’re a startup looking to get your feet off the ground, or an existing business with a bit of experience looking to expand operations, these loans are worth taking a look at.
The Cowichan Micro Loans Program provides businesses with an extra boost of funding to implement new seasonal, part-time or full time projects. In addition to the loan, clients will also receive guidance from business advisors who help implement strategies to spark growth .
You may use the loan for new projects or to purchase equipment, tools, inventory, or working capital. Micro loans can be put towards any business purpose directly related to the core business operations.
Loan amounts range between $500 to $5,000. Micro loan interest rates sit at 10%, with a 2% application fee upon successful applications. Depending on the client and the loan amount, the repayment terms range from 6 to 36 months.
In order to qualify for the micro loan you will need to fill out the downloadable application on their website. You must describe your business, target market, competition etc. Your application should demonstrate clear incentives on what you intend to use the money for and how the funding will support the growth of your business.
The Basin Food Producer Loan is - as the name suggests - intended for food producers in Basin. This loan provides producers with working capital and equipment purchases so they can recover and expand operations due to increased pandemic-related demands.
This is offered as a one-time loan and the minimum amount you may request is for $10,000. The interest rate is calculated at 2% per annum, with 0 interest charged for the first three months. Interest only payments will continue for the following nine months, afterwards payments will begin in amounts aimed to repay the loan over a maximum of a five year period.
For the business owner to successfully obtain this own, they must meet the following provisions:
Food producers must also provide the following:
The Canada Small Business Financing Program is a financial support initiative that collaborates with other financial institutions to help businesses fund the cost of:
The borrower and lender will determine between themselves what the loan principal will be, along with the conditions of the loan agreement. The maximum loan amount an individual can secure through the Canadian Small Business Financing Program is $1 million, of which no more than $350,000 can be used to finance the purchase of leasehold improvements or the purchase or improvement of equipment.
Start ups and small businesses operating for profit in Canada, possessing gross annual revenues of $10 million or less are eligible. Other requirements include:
The Small Business Working Capital Loans supplies working capital and operating funds for Basin-based small businesses and social enterprises to help overcome the challenges that COVID-19 has presented. The funds provided by this loan may be used for business costs such as rent, wages, inventory, renovations, equipment purchase, personal protective equipment and capital expenses necessary for business re-opening or modifications.
Additionally, loan funds may be used for expenses related to technology adoption and implementation. Technology adoption includes, but is not limited to, front and back end office systems, e-commerce and digital transformation of business and/or manufacturing processes.
The funds from this loan can not cover debt repayment.
This is a one time loan and the minimum amount given is $5000, with the maximum being $40, 000. No interest is charged for the first three months. Interest only payments will continue for the following nine months afterwards payments must be made to ensure the full repayment of the loan within a five year period.
You may still apply to this loan if you have received funding for other programs.
Small businesses, both Indigenous and non-Indigenous, and social enterprises that are headquartered and operating in the Columbia Basin Trust region may qualify for this loan.
Your business must demonstrate:
Businesses must provide:
These loans are geared towards assisting minority groups by giving them the funds necessary to succeed in their business endeavours.
Community Futures Development Corporation of Central Interior First Nations (CFDC of CIFN) provides Indigenous people with funding for economic development within the community of Central Interior of British Columbia.
The CFDC of CIFN is devoted to fostering growth for Indigenous entrepreneurs through their small business loan program. Business development sets the ground for a healthier economy which will in turn be great for creating employment. Additionally, the individual borrower will gain skills such as self-sustainability, experience in personal and business financial management, and may become a community role model.
CFDC of CIFN offers small business loans in General Business Loans, Agriculture Business Loans and Youth Investment Fund, Disability Investment Fund, Community Business Loans, and Youth Investment Fund.
Each loan program has their own set of requirements:
The CFDC and CIFN serves Indigenous communities within the following areas:
Indigenous persons, groups, or businesses living both on and off reserves as well in urban and rural settings can also apply.
The All Nations Trust Company services a large area, covering most of BC. ANTCO’s territory possesses a disparities in economic development spanning both large urban communities and small isolated communities. For that reason, entrepreneurs in isolated communities typically require a greater degree of mentoring, both before and after securing a loan.
There are no geographic restrictions for mortgages.
ANTCO wants to aid Indigenous Communities in realising their full business potential by providing a loan to fund their projects. This loan may go towards start-ups, expansions, acquisition or modernization.
Each loan program has their own terms.
First Citizens' Fund Loan Program
Trustee Loan Program
Commercial Mortgages
In order to qualify, your loan applications should have a clearly defined business plan indicating:
Women’s Enterprise Centre is a non-profit organization aimed at supporting BC women in starting, leafing, or growing their business. Women’s Enterprise Centre has helped women-led businesses since 1995, providing loans of up to $150K, including practical resources such as business advice, mentoring, skills training, and community support to succeed in business.
There are two different loan programs: Startup and Growth
The two programs offer different loan amounts and repayment options.
Startup
Growth
The Startup loan is for women-owned businesses operating for at least 6 months. And the Growth loan is for women-owned businesses operating for at least 12 months.
The WEBC Business Loans for Youth is a loan program for young entrepreneurs. They have partnered with Futurpreneur Canada to offer an unsecured joint loan. Some additions perks to this program include:
Features include:
The owner of the business must make a financial contribution. This equity can be in the form of cash and other business assets, such as equipment or inventory. The minimum equity requirement for the youth business loan sits at 10% of the loan amount, instead of the standard 25%.
WeBC will also be looking at your credit history and weigh it against the strength of your business plan. Your personal credit score does not need to be in perfect shape, they are mostly looking at if you have outstanding bankruptcy or judgment.
To meet the criteria, you do not have to have owned or run a business prior to the application. However, ,you must have the skills necessary to operate and manage a business successfully.
Applicants must meet these additional requirements:
Applicant must have a business plan that shows:
Those looking to secure small business loans in BC should consider using accounting software like QuickBooks Online to help them manage their finances and generate the financial documents they need to apply.
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