There are a number of federal and provincial programs other than banks providing loans for capitalization and financing for business expansion through purchasing new equipments or machines or penetration into export market such as:
1-Southern Ontario Fund for Investment in Innovation (SOFII)
Through this program FedDev provides loans from $150,000 to $500,000 to support growth of small businesses in the following activities:
- Late stage commercialization;
- New product or service development;
- New applications or market or Development or implementation of new processes or technologies.
2-Business Development Bank of Canada (BDO)
- Financial and consulting services with particular focus on emerging and exporting sectors of the economy. The program focuses on business management training and business planning.
- Expansion loans or line of credit for export marketing
- Purchase Order (PO) financing for auto sector. The program covers 100% of costs to ramp up production of new parts. This is suitable for companies diversifying into new markets.
3-Community Futures Development Corp.
The program supported by FedDev Ontario. The program supports and encourages community-based and not-for-profit organizations to discover entrepreneurship and economic opportunities. FedDev provides loans to small businesses in rural communities up to $250,000 for equipment, inventory, working capital, etc.
4-Export Development Canada (EDC)
EDC is Crown corporation that supports and develops, directly or indirectly, Canada’s export trade and Canadian capacity to engage in that trade and to respond international business opportunities. It provides insurance and financial services, bonding products, and small business solutions to Canadian small business exporters and investors. Online credit risk management tools are also available. Other services include export financing to customers, receivable insurance and due diligence.
5-Prosperity Initiative (FedDev Ontario)
The loans are available for 3 streamlines:
- Productivity Enhancements: Lead applicant should be not-for-profit representing a sector or industry that results in the adaptation and adoption of new technologies, processes and skills to enhance business productivity;
- Regional Diversification: Applicants are small businesses (under 1000 employees) and not-for profit. The program supports projects resulting in new industries or opportunities that will diversify the economy of a region; market development and expansion; business attraction and expansion;
- Building a Competitive Advantage: Applicants are small to medium size businesses; Not-for-profit; or post-secondary. Eligible projects should create or expand strategic economic clusters to enhance global competitiveness; support adaptation and adoption of new technologies, processes and skills; technology demonstration and piloting; business opportunity development and expansion; facilities improvement and expansion;
6-Ontario Emerging Technologies Fund (OETF)
The program is Managed by Ontario Capital Growth Corporation (OCGC). Maximum of $50 million/year for 5 years to co-invest in Ontario companies involved in clean technology, life sciences, Info and Communications Technology and digital media.
7-Canadian Youth Business Foundation (CYBF)
Loans up to $15,000 is available to start businesses for individuals age 18 to 34. Those who qualify can also apply for an additional $30,000 through the CYBF-BDC Start-Up Financing Program.
8-Small Business Financing Program
Business loans available from any chartered banks for small businesses with less than $5 M in revenues for capital acquisition. Maximum loan available per company is $350k and $500k for real estate business with prime + 3% rate.
To access the full list of grants and loans available to small businesses please contact us.