Small Business Loans Association
The Canora Economic Development commission administers two small business loans associations, offering small business loans of up to $20,000 to assist businesses with start up, expansion or improvement costs.
What is the SBLA’s Objective?
The main objective of an SBLA is to “Operate a loans association for the purpose of making loans to small businesses.” The association encourages the formation and supports the continuance of existing small businesses by providing financial assistance under the SBLA.
How much money can be borrowed?
SBLA’s can lend up to $20, 000 to applicants. SBLA loans must be repaid within 4 years and will have interest rate between 1% to 10% (ours is 4%). The frequency of the loan payments can be decided between the applicant and the SBLA that is doing the lending.
Who can borrow from an SBLA?
Businesses and associations not eligible for assistance include those engaged in direct farming, exploration (e.g. mining and oil extraction), residential real estate, direct selling, and multi-level marketing, replaying and existing debt or outstanding account of the eligible business, paying operating expenses of the business. Charitable organizations do not qualify for assistance.
How can funds be spent?
The funds from an SBLA must meet certain criteria. These include money for purchasing new equipment, inventory, minor renovations and expansion.
What documentation must a borrower provide?
The loans association must provide a business plan, application, a signed demand promissory note, a general security agreement, which will be assigned to the government of Saskatchewan.
Can a borrower, who has paid their loan, borrow again?
Yes! Providing they have substantially paid down their loan to the maximum of $20, 000.00 limit.
Can a borrower, who has not paid their loan fully back yet, borrow more?
Yes! Those currently a SBLA client can now extend their loans with new timelines, etc.
S.B.L.A Loan Criteria
- Interest rate is 4%
- Maximum loan period is 4 years.
- Applicant should supply a business plan as outlines on the sheet given to them and hand the completed form to the administrator before the applicant will be considered.
- All loan applications must be accompanied by a $60 application fee. Cheque must be made out to the Minister of Finance.
- All loan payments are due on the 1st of every month. You must supply the Commission with twelve post dated cheques before loan amount will be released.
- All NSF cheques are charged local bank rates.
- The business must be established in Canora or immediate surroundings area.
- Will create or maintain jobs in Canora.
- Any first time applicants have president over second time applicants for fund available.
- Canora’s Community Development Officer must interview loan applicants.
Links to help you get started
- Community Futures Ventures
- Government of Canada Business
- Saskatchewan Economic Development Association
- Grow Our Region
For more information contact:
Community Development Officer
Town of Canora
418 Main Street
Canora, SK S0A 0L0
Ph: (306) 563-5574
Fax: (306) 563-4336