COVID-19 SMALL BUSINESS LOANS UP TO $250,000 By ( BDC )
Designed specifically for the small business owner–to help your business adjust to COVID-19.
LOANS UP TO $250,000 FOR COVID-19 AFFECTED BUSINESSES MADE EASY
APPLY ONLINE IN 20 MINUTES OR LESS. FUNDING IN 3 BUSINESS DAYS OR LESS.
HOW DOES THIS LOAN WORK?
- Loan amounts up to $250,000
- Rates start at 8.95%
- Loans may be repaid early at any time without any penalty whatsoever
- Fully online application process tailored to small business owners
- Terms of either 36 or 48 months
- Interest payments for the first six months deducted from loan proceeds, meaning you have no cash outflow for payments until the 7th month
WHAT BUSINESSES QUALIFY?
- Must be located in Canada and negatively affected by the COVID-19 pandemic
- Must have been registered (if a sole proprietorship) or incorporated (if a company) for at least 12 months
- Must be still operating, even if at a reduced capacity
- The business and each shareholder must have an average or better credit profile
- All shareholders must be willing to personally guarantee the loan
- You have a business-only bank account and a CRA business number
- An amount up to $250,000 must be sufficient for your working capital needs to adjust your business to the impacts of the COVID-19 pandemic
- You must be willing to complete a BCAP eligibility form – on-line at the EDC (Export
- Development Canada) website
- Other conditions apply – see the application form for complete details.
WHAT CAN FUNDS BE USED FOR?
- Business expenses including payroll, rent, inventory, operational expenses, financing accounts receivable, and making regularly scheduled debt payments such items including bank loans, equipment loans, equipment leases, etc.
- Acquiring equipment necessary to adjust your operations to operate in compliance with public health orders or to mitigate other COVID-19 effects on your business.
WHAT CAN FUNDS NOT BE USED FOR?
- Paying off or refinancing existing indebtedness, as these loans are for working capital purposes only.
- Paying staff or management bonuses, repaying shareholder loans, or to pay dividends.