Ottawa Community Loan Fund – Small Business Loans

ByMaurice

Description:

Ottawa Community Loan Fund (OCLF) offers eligible applicants support including business plan and cash-flow development when they apply for the Alterna Savings micro-finance program. The program provides loans of up to $ 15,000 to small and developing business.

Comments on Funding:

  1. Funding is a loan of up to $15,000.
  2. Interest rates on the loans are usually current bank prime rate plus 2% to 6% max.
  3. Loan repayment terms normally range from 12 to 60 months.
  4. Upon approval of a new loan, OCLF will charge a one-time due diligence fee of 3% of the value of the loan, up to a maximum of $250.

Eligibility:

Applicants must:

  • be 18 years or older;
  • live in the City of Ottawa and have permanent legal status in Canada;
  • own no less than 51% of the business in the case of the corporation and have the signature of all the shareholders; in the case of a partnership all partners must be willing to co-sign for the loan; in the case of a non-profit, the President and two officers with signing authority will make an application to OCLF and in the case of a co-operative, all members will make application to OCLF;
  • demonstrate an ability and commitment to repay the loan as confirmed by credit checks and references;
  • have been discharged from bankruptcy for at least 2 years, as confirmed by a credit check, if applicable;
  • agree that OCLF will be the first secured party for existing equipment and vehicles that may be pledged as security for the loan;
  • have no outstanding debts on which there are payment defaults;
  • submit a business plan including start-up costs and a monthly cash-flow projection for the next two years. In the case of an expansion of an existing business, financial statements will be required;
  • have businesses:
    a) located in or around Ottawa;
    b) legally registered or in to be registered as sole proprietorships, partnerships, corporations or co-operatives.
  • use the funds to start or expand business operations.
  • not be using the funds to consolidate debt.

Applications Steps:

Applicants must fill out the online contact form if they are ready to apply.

Documentation Needed:

Applicants must provide the following requirements:

  1. Proof of identity (driver’s license, passport or similar photo identity document);
  2. Business plan including a two-year cash-flow projection;
  3. Two References (business or academic contacts only);
  4. A current resume;
  5. If applicable, provide business registration document.

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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