Stormont, Dundas & Glengarry Community Futures Development Corporation

Loans Fund

Loans Fund

SD&G CFDC administers a local investment fund to help new and existing businesses finance start-up, expansion or stabilization plans that help maintain or create employment. Businesses must be located within Stormont Dundas and Glengarry. Repayable loans, loan guarantees and equity investments in amounts up to $150,000 are available when financing from other sources is insufficient or unavailable. Information about lending criteria and how to apply is listed below.

How to Apply

To begin the loan application process:

Prepare your business plan
Complete your financial statements and or/ forecasts
Loan Procedure
Requirements
CFDC Business Profile
Contact our Loans Officer for an initial interview.

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

The Loans Officer will analyze the loan application package and present the project to the Investment Committee (a committee of the Board of Directors). All finance decisions are made by the Investment Committee. Decisions are based on the strength of the business plan, 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

Loan interest rates, terms, security and reporting requirement are reflective of the level of risk involved and are assessed at the direction of the Investment Committee.

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 the Investment Committee based on cash flow forecast and overall capacity to repay the loan. All loans are reviewed annually. Loans are repayable in full at any time without penalty.

In all cases the CFDC seeks 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.

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.

With the Support of the Federal Economic Development Agency for Southern Ontario