Micro Loan Program

About Micro Loans

Whether you are a new entrepreneur with big ideas, or an existing business wanting working capital to improve your cash flow, Community Futures can provide fast turnaround financing through our Micro-Loan Program. In two business days or less Micro-Loans of up to $10,000 can be approved with no minimum loan amount and terms of 6-48 months.

 

Micro-Loan approvals focus on character, business concept and your capacity to generate cash flow rather than collateral and credit rating. Micro-Loans can be used for nearly any business purpose directly related to the core business other than owner salaries or shareholder loan payments.

 

Use a Micro-Loan to turn your great idea into a new seasonal, part-time, or full time business venture, or use it to purchase equipment, inventory or as working capital. There are no penalties for early repayment, and if you fully repay your Micro-Loan on time or early we will even refund 20% of all interest paid over the lifetime of the loan.

 

As a community based lender, the goal of our Micro-Loan program is to see viable businesses that help to create a strong local economy. 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

To qualify for a Micro-Loan you must:

  • Be a resident of Greater Trail
  • Be legally entitled to work in Canada
  • Be 19 years of age, or have a co-signer if under 19

 

The following is taken into account when applying for a Micro-Loan:

  • Ability to generate adequate cash flow to repay the loan
  • Applicants ability to run the business
  • Viability of business concept/idea

Application Process

Applicants are asked to submit a Business Loan Application and a Micro-Loan Business Plan Details form to our Loans Manager for review and analysis. The details form will be reviewed to determine the sales potential of the product and/or service, as well as the applicant’s ability to run the business.

To complete the form, borrowers should have a complete understanding of their market, capacity and competition. The form includes sections on business operations where you are asked to describe these key business elements. Applicants with an existing business plan may submit their business plan and leave the details form blank.

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.
Click-here to open our Micro-Loan Business Plan Details form in PDF format.

Loan FAQ

What is your interest rate?
Interest is charged at the Royal Bank of Canada prime plus 7%. Loans paid in full and on schedule will be refunded 20% of the total interest paid. In essence this reduces the interest rate, so as an example a 10% rate becomes 8% if paid in full and on time.

 

How does the 20% interest refund work?
Repay your loan with no more than two late payments and you will be issued a cheque equal to 20% of all interest paid over the life of the loan.

 

What are the terms?
The minimum loan term is 6 months and the maximum term is 48 months. Repayment options may be tailored to seasonal clients on a case-by-case scenario.

 

Are there any other fees?
A one-time, non-refundable 2% administration fee is appended to all approved loan applications.

 

What will my 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.

 

Should I have a business plan?
We do not require a business plan as we have a business plan section in our application; however, there is truth to the saying “If you fail to plan you plan to fail”. By researching your market and strategy your expectations will be far more realistic and your chances of success will be greatly improved.

 

Do I need collateral?
Approval is based on sales potential of the product and/or service as well as the applicant’s ability to run the business. Collateral and personal investment will be taken into consideration, however, the approval process will weigh more heavily on the character of the potential client and the business concept/idea.

 

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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