Small Business Tips
SBLA Program Details
Who May Borrow From an SBLA?
Any one business is eligible for the maximum $15,000 SBLA loan including any entrepreneur that has experienced difficulty in obtaining financing through traditional means. Businesses not eligible for assistance are those engaged in direct farming, exploration (e.g. mining and oil extraction), residential real estate and multi-level marketing. Charitable and non-profit organizations do not qualify for assistance.
In making loans, an SBLA generally judges businesses on their ability to create jobs and to add services to communities. The ability of businesses to access traditional bank or credit union financing is also considered, as the intent of the program is to provide help to entrepreneurs who otherwise might not get started.
What are the Terms of an SBLA Loan?
Businesses can use SBLA loans to purchase assets, such as equipment. Monies cannot be used for operating expenses or for repayment of existing debt.
Loans are granted at competitive interest rates, which vary with each association up to a maximum of 10% per year. Businesses have up to five years to repay their loans. It is preferred that a client obtain all his/her loans from only one SBLA.
The principal repaid on a loan is returned by the SBLA to the Ministry of Enterprise and Innovation. The SBLA retains the interest to cover its administrative costs.
How do we Apply?
To borrow from an SBLA, contact your local association for program information and application forms. If you do not know the SBLA in your area, contact the SBLA Program Office (see below) for referral to the association nearest you. You will be required to provide the association with a completed application, a business plan and a signed demand promissory note and general security agreement along with an administration fee. The SBLA will then review and approve or decline your loan.
To establish a Small Business Loan Association in your area, contact the SBLA Program Office for information and preliminary review. Once you have completed your application form and incorporated your association, the department will review your application and, if it is successful, provide your association an offer of credit at an appropriate level.
What is a Small Business Loans Association (SBLA)?
Community-based interest groups, co-operatives, corporations, Rural Development Corporations and Regional Economic Development Authorities can form SBLAs. Under The Business Corporations Act or The Co-operatives Act, the SBLA can incorporate as either "for profit" or "non-profit".
Once approved and incorporated, an SBLA may access an interest-free revolving line of credit of up to $200,000 from Regional Economic and Co-operative Development. The SBLA, in turn, uses this line of credit to make loans of up to $15,000 to new and existing businesses.
SBLA Success Stories
For more information, contact:
Linda Welk, SBLA Administrator
Small Business Loans Association
Ministry of Enterprise and Innovation
200 - 3085 Albert Street
REGINA SK S4S 0B1
Phone: (306) 787-7154
Fax: (306) 798-0796