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Cornerstone
Regional Economic Development Authority
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Sun Country Small Business Loans Association PURPOSE | ELIGIBILITY | INTEREST RATE | LOAN SIZE | LOAN TERM | SECURITY | CONTACT
To provide business development opportunities to the non-traditional entrepreneur and to extend financing beyond the traditional lenders scope to contribute to the success of the small entrepreneur. To expand the economic base of rural Saskatchewan by involving existing businesses and associations to assist small start-up or existing businesses in their communities. To encourage the formation and support the continuance and retention of existing small businesses by providing financial assistance under the SBLA program. The goal is to make small loans available to assist in the creation and development of new and existing businesses.
The following four areas are not eligible for lending under the Industrial Development Act:
The interest rate shall be fixed for the term of the loan. The interest rate for a loan shall be that which is in effect for the association at the time a loan is approved and a letter of offer is given to the client. The present rate is 6%. Interest shall be calculated monthly.
The maximum size of loan, loan guarantee and/or equity financing to any applicant, or enterprise, may not exceed $15,000 as stipulated in the contract with Enterprise Saskatchewan.
The maximum term and amortization period of a loan shall be five (5) years. Repayment of all loans will normally be amortized over the agreed upon term. The term of a loan shall not exceed the estimated lifetime of the assets purchased with loan proceeds. The repayment schedule shall be flexible and at the discretion of the loans committee. There will be no penalty charge for prepayment of loans.
All loans will be secured by way of Promissory Note which will be supported by security available and will be documented by legal council where deemed appropriate. The association will be flexible in taking security but may include mortgages on real property and chattels, personal property security agreement which include the assignment of book debts, personal guarantee, floating and fixed debentures and any other appropriate security including the assignment of insurance proceeds. Six (6) month's post-dated cheques in the amount of the loan repayment will be required throughout the length of the term. A $60.00 Administration Fee will be charged.
Contact: Judy Riddell Phone: (306)
453-2557 |
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