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?
Community Futures South Kootenay 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 South Kootenay 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.
