Comments on Funding:
Funding is a losn of up to $50,000.
Loan terms and conditions:
- Loans will be provided at 0% (zero) interest for the first 6 (six) months, and will be repayable on an interest only basis for the subsequent 6 (six) months fixed at Prime + 3% (currently 5.45% effective rate), followed by a blended principal and interest payment for the following 4 years fixed at the Prime +3% for the remainder of the term.
- Repayment terms based on amount borrowed and available cash flow with a maximumterm of five (5) years, with a maximum 5 year amortization period.
- First twelve months may be repayable on an interest only basis. Thereafter the principal willbe repaid over the remainder of the established term and amortization, commencing on thefirst anniversary of the loan disbursement date.
- First payment is due thirty (30) days from loan interest adjustment date following loan disbursement or first advance.
- Loans can be prepaid without penalty prior to maturity.
- Security is a Promissory Note executed by the owner(s) or majority shareholder(s) of thebusiness, together with General Security Agreement registered under the PersonalProperty Security Act forming a non-specific charge on the assets of the business and/orborrower
A business is eligible for only one Emergency Support Loan at any given time. A family unit owning more than one business can apply for Emergency Support Loan financing for each individual business, if they can clearly demonstrate that their financial records and tax reporting are not consolidated and that the respective businesses are not substantially inter-dependent.
Applicants must submit:
- an Emergency Support Loan Application;
- a Personal Financial Statement;
- Cashflow Projections;
- a COVID-19 Recovery Plan.
Other Things to Note:
Applicants should contact Sarnia-Lambton Business Development Corporation (SLBDC) for further details.