Community Futures Oxford – Sand Plains Community Development Fund (2021)

Description:

The Sand Plains Community Development Fund provides loans of up to $250,000 to new or existing businesses in Oxford County. The goal of this Fund is to foster entrepreneurship in the region by increasing the availability of patient capital for small business start-ups and expansions in priority sectors. Patient capital provides flexible repayment terms, negotiated to encourage the long-term viability of the borrower.

Loans can be used for the following:

  1. new and used equipment purchases;

  2. inventory

  3. commercial real estate;

  4. working capital.

Comments on Funding:

Funding is up to $250,000.

Loan terms and conditions:

  1. Interest rates are prime plus 2.0% plus a risk premium based on Community Futures Oxford’s evaluation of the application, business plan, cash flow forecast, and pledged security.
  2. An application fee of 1.0% is due upon loan approval.
  3. Repayment terms are very flexible and are negotiated in the best interest of the business. All loans are open for prepayment without penalty.

Eligibility:

Applicant must:

  • be new or existing businesses in Oxford County;
  • have the ability to repay the loan;
  • provide adequate security (which could include both business and personal assets);
  • have the capability to operate and manage the business;
  • have a good credit history;
  • make a commitment to the business in the form of an owner’s equity contribution;
  • provide job opportunities;
  • have a sustainable business plan and cash flow.

Applications Steps:

Completed Business Loan Application along with the business plan will be reviewed by the General Manager. Eligible proposals will be submitted to Community Futures Oxford’s loan review committee to determine whether the loan will be recommended for approval. Approved applications must receive final authorization from Community Futures Oxford’s Board of Directors and applicants will be notified following the Board meeting of the decision regarding their application.

Documentation Needed:

Applicants must submit a completed application package including:

  1. the Business Loan Application;
  2. a business plan describing the new business, expansion, purchase or restructuring plans. The business plan should also include at minimum a 2-year Profit and Loss forecast and Cash Flow (if applicable). Any format is acceptable as long as it clearly explains how the business will succeed.
  3. the last 3 years financials of the business, if an existing business.
  4. a Personal Statement of Net Worth (PSONW) form for each owner or shareholder.

Other Things to Note:

Priority Sectors extracted from the Oxford County website and from the Future Oxford Community Sustainability Plan (http://www.futureoxford.ca/General/SustainabilityPlan/index.htm).

Program Contact:

Community Futures Oxford | Business Financing

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