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Loans Fund
Loan Application Process
Repayable loans, loan guarantees and equity investments in amounts up to $250,000 are available to new and existing businesses located in the counties of Stormont, Dundas and Glengarry including the City of Cornwall.
How to Apply
To begin the loan application process:
Initial Interview
The initial interview is an information exchange where we provide you with an overview of our services and you provide us with an overview of your business plan and financing requirements. If you decide to proceed, the next step is to submit a loan application.
Application
At a minimum, your loan application must include:
- $ 250 non repayable application fee (upon approval you will be charged the full application fee of 1% of loan amount less the $250 non repayable fee)
- Application for Financing
- Business Plan including Projected Cash Flow, Balance Sheet and Income Statements
- Personal Financial Statement for each partner/shareholder
- For existing business, a copy of your Business Registration and/or Articles of Incorporation
- Copy of your Income Tax Return
- Copy of Birth Certificates of each partner / shareholder.
Upon review of your Loan application, you may be asked to provide additional documentation such as historical financial statements, aged listing of accounts receivable / payables, etc.
Evaluation
Our Loans Officer will analyze your loan application package and present to the Investment Committee of our volunteer Board of Directors. All Financing decisions are made by the Investment Committee. Financing decisions are based on the strength of your business plan, your ability to repay, available security, impact on job creation or maintenance and the impact on long-term growth for the community.
Interest Rates, Terms, Security and Reporting Requirements
Our loan interest rates, terms, security and reporting requirement are reflective of the level of risk involved and are assessed at the direction of our Investment Committee.
Our interest rates on approved loans range from prime plus 3% to prime plus 5%.
Repayment terms can be customized to meet your business needs. The term of any loan will be determined by our Investment Committee based on your cash flow forecast and overall capacity. All of our loans are reviewed annually. Our loans are repayable in full at any time without penalty.
In all cases we seek to obtain adequate security to ensure repayment in the event of default. Types of security frequently taken include, but are not limited to, the following:
- Promissory Note
- Real Property Mortgage / Assignment of Insurance
- General Security Agreement
- Personal Guarantee
- Subrogation / Postponement
- Life Insurance.
Our loan clients are required to submit income statements to us regularly, throughout their fiscal year, for the duration of the loan. Annual financial statements must also be submitted.
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