The SBLA program is a provincial government program that is administered through local community-run loan associations. An individual business can borrow up to $20,000 to start or expand a business.
The program is meant to provide financing to new businesses or existing businesses that want to expand. It is meant to fill the funding gap to finance businesses that traditional banks or credit unions might find too risky. The program’s goal is to help entrepreneurs who might not otherwise find financing to start their businesses.
Eligible Loan Purposes
- start-up inventory
Non-eligible Loan Purposes
- direct farming
- mining or oil extraction
- residential real estate
- multi-level marketing
- operating expenses
- repayment of existing debt
The local community loan associate will set the interest rate but the maximum rate is capped at 10 percent. Loans are granted for a two to five year term.
Loan Application Process
Entrepreneurs can contact either their local community loan association or the SBLA program office at Enterprise Saskatchewan at firstname.lastname@example.org or 306–787–4707. Prospective borrowers will be required to provide the following information to their local community loan association, which will then review the material and make a lending decision. Decisions are partly based on the number of jobs the business will bring to the community and the services the business will provide.
- completed application
- business plan (including financial projections):
- demand promissory note
- general security agreement; and
- administration fee
The SBLA is a good option for some borrowers. It can provide seed capital that can make the difference between starting or not starting a business for many entrepreneurs. If you feel like the program might meet your needs, it’s worth giving your local association a call.