Introduction to CFSF Loan Program
One of the most successful means that Community Futures (CF) have in fostering entrepreneurship in BC is their ability to provide business loans to entrepreneurs who have had trouble accessing capital from traditional lenders.
In addition to providing individualized business counselling, our Community Futures operation can lend up to $300,000 to new and existing businesses for:
- capital purchases,
- operating capital,
- start-up costs,
- top-up financing, and
Loans received from a Community Futures are fully repayable and are offered at a competitive interest rate. In over ten years of lending to entrepreneurs in British Columbia, the CF'S, on average, have recorded an unprecedented financial institution repayment rate of 96%.
- The applicant must be of legal age and a resident of Canada.
- The business must be located in the CFSF region, and the applicant must be involved in the day to day operation of the business.
- The business provides evidence that the loan will be used for activities that will promote stable growth, job creation and diversify the local/regional community.
- The loan(s) are to establish, expand, or preserve a business within the CFSF region. CFSF Region includes the geographic area that is West of the Township of Hope, East of the Greater Vancouver Regional District (272nd St.), South of the Fraser River and North of the US Border.
- The applicant must declare and provide evidence they have been declined financing by a traditional lender.
- CFSF requires copies of "Trade Certificates" for loans to trades related businesses.
- The applicant must have completed a Business Plan acceptable to CFSF.
- The applicant must have proof of personal equity investment in the business. A minimum of 10% equity is generally required by CFSF based on the lesser of cost or market value.
- The applicant must complete all other required application forms plus and additional documentation requested by CFSF.
- Unless there are unusual or extenuating circumstances, applications will not be considered in any of the following situations;
- The applicant is in bankruptcy;
- The applicant has an outstanding court judgement;
- The applicant has outstanding collections;
- A credit check has revealed a major credit problem;
- The main purpose of the loan is to refinance current debt;
- The applicant is unable to provide proof of residency.
- The loan must be approved by the General Manager, Loans Committee or Board.
Community Futures can help you arrange financing for your business through regular channels (banks, credit unions, and the Business Development Bank of Canada).
In addition, Community Futures can provide business development loans from their own funds, as well as by accessing specialized loans programs that target segments of the BC population that may face additional obstacles in securing business financing.
Contact us now about applying for a business loan.
Entrepreneurs with Disabilities Program
This fund was established in 1997 by Western Economic Diversification Canada to make it easier for entrepreneurs with disabilities to pursue their business goals. Please visit the Entrepreneurs with Disabilities website for more information. This website is a resource for people with disabilities who may be exploring the option of self-employment and need access to some basic tools and information on the initial steps for starting a small business. This site features web accessibility features for people with disabilities and provides straightforward information on self-employment, creating a business plan, and how to apply for an EDP loan.