Small Business Loans Available
Posted on Thursday October 18, 2012 at 11:06AM
What we Do
The Oxbow Economic Development Committee Inc. provides loans of $15,000.00 or less to new or existing businesses in the Oxbow area. Businesses can use these funds to purchase fixed assets such as equipment, supplies or inventory. They cannot use the money for operating expenses, purchase land or buildings, or for repayment of existing debt. Loans are granted at a fixed rate of 5%. Businesses have up to 5 years to repay their loans with the exception of:
- Computer loans, maximum of 3 years
- Inventory loans, maximum of 2 years.
Who May Borrow:
Businesses eligible for SBLA loans include any companies that hae experienced difficulty obtaining financing through traditional means. Businesses not eligible for assistance are those engaged in direct farming, exploration (mining and oil extration), residential real estate, and mult-level marketing. Charitable organizations do not qualify for assistance.
What You Need to Apply:
When you apply for a loan with OEDC, we require a business plan and a projected income/expense statement for one year. You will meet with a loans representative to discuss the details of your plan. At this meeting, you will complete an Application for Financing, a Demand Promissory Note, and a Security Agreement.
What Happens After You Apply:
After you apply, your loan application will be reviewd. Your credit rating and references will be checked. Your loan appliction will then be presented to a Credit Committee. The committee will review your application and make as decision as to the viability of the loan. When the loans committee approves the loan, it will be sent to Saskatchewan Rural Development for final approval. Saskatchewn Rural Development requires a non-refundable loan application fee of $60.00 payable to the Minister of Finance beefore your application can be processed. The province requires approximately 2 weeks to process the loan.
What We Need From You After You Receive the Loan:
Upon approval of your loan, we will require:
- copy of paid receipts
- where applicable, bill of sale, vehicle registrations, seriel numbers on any equipment purchased, etc.
- repayment is by monthly post-dated checques
Where Do I Apply:
To borrow from the SBLA, contact Dale Ching by phoning 483-2465
Author: Town of Oxbow