CFDC Loans Program

About CFDC Loans

Community Futures makes small business loans to new and expanding firms in the Greater Trail area. The goal of our loan portfolio is to balance risk and foster sustainable community economic development. As a community based lender, the loan funds serve a dual purpose:

  1. To invest and support sound business ventures within our communities; and
  2. To assist in the overall scope of long-term community development goals and activities in the area.

Community Futures evaluates all lending applications on a triple bottom line basis. Applications must prove to be a “win” for the Entrepreneur, Community and Community Futures. Our business plan template provides a wealth of information to help entrepreneurs document their business model to help visualize operations and avoid costly mistakes.

For more information on Community Futures business loans please contact Tamara Rotach at 364-2595 ext. 26 or email tamara(at)communityfutures.com

 

Loan Criteria

The following is taken into account when you apply for a loan:

  • Market potential and future economic viability of the business.
  • Local job creation.
  • Experience related to the venture.
  • Reasonable personal financial investment.
  • Ability to repay.
  • Adequate security for the venture.
  • Creation of a business plan.
  • Location of the business within the Greater Trail Area.

Loan Application Process

Applicants are asked to submit an application and business plan for analysis by our analyst. The business plan may be relatively simple or very complex depending upon the nature of the business. The plan is then evaluated by an analyst and a recommendation is made to a finance committee made up of community volunteers. Because we are in the business of supporting entrepreneurs, applications may be submitted at any time. The following is an outline of our lending process:

  • Contact our office for initial discussions concerning your application.
  • Develop a business plan, including financial projections.
  • Complete the required loan application form.
  • Submit the completed loan application and business plan to our office. Depending upon your business plan and projections, you may also be asked to supply additional information.

Once your application has been received you will be notified on the status of your Micro-Loan application within two business days.

Click-here to open our business loan application in PDF format.

Business Loan FAQ

What is your interest rate?
Interest rates can be as low as RBC prime plus 4%, depending on the level of risk involved with the loan.

 

What makes CFDC loans different from a regular lending institution?
CFDC of Greater Trail is a community based lender. Applications are reviewed by local residents who understand our unique business climate. We work with our clients to ensure their business plan is sound and can tailor payment schedules to meet cash flow cycles. Our goals evolve around helping businesses succeed, not increasing shareholder profit.

 

What will my monthly payments be?
Our payment calculator can help estimate your monthly payment; however, you should discuss your options with our loans manager to determine the best amortization schedule for your specific situation.

 

Do I have to submit a full business plan?
A full business plan may not be required. The overarching requirement is that we understand your business and how funds will be utilized. New businesses may be asked for a business plan and financial projections, whereas existing businesses may be asked for an updated plan. In some cases an outline of how loan funds will be utilized may suffice.

 

How long will it take before I can get the money?
The time requirements before funds can be disbursed vary with the complexity of the loan and completeness of the application. Complete applications are submitted to the volunteer finance committee on a monthly basis. Once approved by the committee a simple loan may be disbursed the following day; whereas a complex loan where legal council is required may take weeks or even months to finalize the contracts.

 

How do I apply?
Contact our loans department for initial discussions concerning your needs. Application packages are available from the Community Futures of Greater Trail office at 825 Spokane Street in downtown Trail.

 

Are there any other fees?

A one-time, non-refundable 1% administration fee is appended to all approved loan applications.

 

How long do I have to pay back the loan?
The term of the loan depends on the nature of the business, cash flow and amount of the loan. Payments can be amortized over a longer period in order to reduce the monthly payment amount.

 

Do you require collateral for you loans?
Yes. We take business and/or personal assets as secured collateral on our loans similar to other lender. However, unlike most other lenders, we are able to take second secured positions behind other financial institutions.

 

 

Readdress Policy

Community Futures Greater Trail
Redress Policy

  1. Manager Rejected Loans
    1.  Should an applicant’s proposal for financial assistance be rejected by the General Manager, the applicant shall have the option of appealing the decision to the Finance Committee.
    2. If the application is subsequently rejected by this second review of the loans committee the applicant shall have no further recourse to appeal.
    3. Applicants have the option to re-apply for financing with a new and complete application package at any point following a rejection.  The application will be considered as a new application.

     

  2.  Finance Committee Rejected Loans
    1. Should an applicant’s proposal for financial assistance be rejected by the Finance Committee, the applicant shall have the option of appealing the decision to the Board of Directors.
    2. If the application is subsequently rejected by this second review of the Board of Directors the applicant shall have no further recourse to appeal.
    3. Applicants have the option to re-apply for financing with a new and complete application package at any point following a rejection.  The application will be considered as a new application.

Payment Calculator

Use the following calculator to estimate monthly loan payments and interest charges. The term, rate and amount used below are sample values only. Please update these values to better reflect your anticipated amortization schedule.

Number of Months of Loan Simple Interest Rate Total Amount of Loan
% $

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