Who Provides the Financing?

Who Provides the Financing?

Finance is provided by an approved list of financial institutions including Scotiabank, the Bank of Montreal, HSBC and the Industrial and Commercial Bank of China (Canada).  For a full list of lenders visit theIndustry Canada website.

How does Industry Canada Help in the Process?

Although Industry Canada does not contribute to the decision making process of the lenders, it provides a reassurance to the lending banks and unions that they will share the risk of the loan and assure cost recovery.  This helps make otherwise unviable candidates viable for their lending programs.

 

Once a lender has approved a candidate for a loan they will notify Industry Canada of the agreement.

What are the Interest Rates?

The interest rate of the loan will be determined by the financial institution providing the loan.  Interest rates can be either fixed or variable.  

 

If the interest rate is variable, it cannot be more than 3% above the financial institution's prime lending rate. If the interest rate is fixed, it cannot be more than 3% above the financial institution's residential mortgage rate.

What are the Fees?

2% of the total loan value must be paid by the business owner to the lender as a registration fee.  This fee can be absorbed into the loan and paid through the loans scheduled payments.

What Other Terms are There?

Lenders are required to take security on the loan which can be in the form of the assets being financed.  Lenders also have the option to take an additional unsecured personal guarantee, which cannot exceed 25% of the total amount loaned.

 

Full payment of the loan will generally coincide with the expected economic life of the asset being financed, up to a maximum of 10 years. Monthly payments on the loan will typically be scheduled however specific details will be dependent on the individual lender.

How to Apply

To apply for the Canada Small Business Financing Program contact one of the approved list of lenders provided by Industry Canada and discuss your business needs with one of their financial officers.  The individual lender will review your business proposal and make a decision on your application.  Once the decision has been made, the 

 

Download Industry Canada’s information pamphlet or contact them at 1-866-959-1699 (toll-free) or csbfp-pfpec@ic.gc.ca for more information on the program.

The Canada Small

The Canada Small Business Financing Program has been working to increase the availability of loans for small businesses for 50 years.  Established by Industry Canada in 1961, the program was created to make it easier for small businesses to obtain financing from banks and institutions by sharing the risk with the lenders.

The focus of the program is to help new businesses get started and to support established firms wanting to make improvements to develop their business.  The Canada Small Business Financing Program improves access to loans, which would otherwise not be available to small businesses, in order to stimulate economic growth.

 

Each year the program helps small businesses access 10,000 loans worth over $1 billion.

Who can apply for the Canada Small Business Program?

If you have a Canadian small business with a gross annual revenue of $5 million or less you will be eligible for this program.

 

Exceptions to the program include: non-profit organizations; charitable and religious organizations, and farming businesses that have access to a similar program run by Agriculture and Agri-Food Canada.

What Can the Loan be Used for?

The Canada Small Business Financing Program is for new and existing businesses alike.  Financing from the program can only be used for specified purposes, including the financing of up to 90% of the cost of:
 

• Purchasing or improving land, real property or immovables;
• Purchasing leasehold improvements or improving leased property;
• Purchasing or improving new or used equipment.

Successful applicants can receive up to $500,000 for their business, of which no more than $350,000 can be allocated to leasehold improvements or improving new or existing equipment.

What is Excluded from the Loan?

• Improve a family dwelling for non-commercial purposes
• Purchase shares
• Finance working capital such as (finance inventory, accounts receivable, etc.)
• To give permits and licenses used in the operation of eligible assets
• Franchise fees
• Feasibility studies for small business; professional fees (e.g. legal, accounting and appraisal)
• Survey costs
• Building permits
• Vehicle for personal use
• Intangibles costs (i.e. research and development costs, prepaid expenses, good will, etc)
• Purchase real estate for resale

Summary of Benefits of CICPa

Summary of Benefits of CICP 

The CICP will provide many benefits to potential suppliers, including:

• Being able to connect with potential clients in federal government departments and showcase your innovations to them.
• Entering the commercial market with a successful application of your new product or service.
• Receiving continuous feedback on the use of your product or service in an operational setting to help develop it, before taking it to market.

However even if you are not successful in being awarded a contract from this program, you will still gain the experience of:

• Understanding how to sell to the Government of Canada, the largest buyer of goods and services in Canada.
• Knowing about the opportunities and methods for supplying goods and services to the government.

For More Information

For more information on providing goods or services to the Government of Canada read our ‘How to do Business with the Canadian Government’ article or contact the Office of Small and Medium Enterprise’s (OSME) at:

 

Email:  osme-bpme-pac@pwgsc-tpsgc.gc.ca

Tel:       1-866-602-0403 (toll free)

 

For more information about the Canadian Innovation Commercialization Program visit the Buy and Sell website.

 

For information about the events which innovators can attend to find out more visit Buy and Sell’s events listings.

 

To view the call for proposal visit the government’s e-tendering service, Merx.

Ask the Expert - How to do Business with the Federal Government 

Small Business BC is offering free one-to-one consultations with a Supply Officer from Public Works and Government Services Canada as part of the Ask the Expert series.  Free consultations will take place at the Small Business BC offices in Waterfront Station, Vancouver or via Skype on August 23rd, 2011.

 

These 30 minute sessions allow you to ask the specific questions about the purchasing process, where to find opportunities and how to respond to proposals.

 

Find out more: Ask the Expert - How to do Business with the Federal Government. 

Let us Help Promote Your Innovative Concept

Small Business BC is looking for entrepreneurs who are looking to start a business or who have been in business less than a year, to nominate themselves for the Best Concept Award at this year's Successful You Awards.  If you have a viable business concept that describes the business, its product, the market it serves and the business' competitive advantage - then why not nominate your business.

 

Nominees from last year's awards contest received over $200,000 in media exposure.  Brian and Corin Mullins, winners of the Best Concept Award 2010/11 for their business Holy Crap, have attracted accolades from across Canada since winning the Successful You Award and now plan to duplicate their company's prototype facility and employment plan around the world.  So what are you waiting for? 

Summary of Benefits of CICP

Summary of Benefits of CICP 

The CICP will provide many benefits to potential suppliers, including:

• Being able to connect with potential clients in federal government departments and showcase your innovations to them.
• Entering the commercial market with a successful application of your new product or service.
• Receiving continuous feedback on the use of your product or service in an operational setting to help develop it, before taking it to market.

However even if you are not successful in being awarded a contract from this program, you will still gain the experience of:

• Understanding how to sell to the Government of Canada, the largest buyer of goods and services in Canada.
• Knowing about the opportunities and methods for supplying goods and services to the government.

For More Information

For more information on providing goods or services to the Government of Canada read our ‘How to do Business with the Canadian Government’ article or contact the Office of Small and Medium Enterprise’s (OSME) at:

 

Email:  osme-bpme-pac@pwgsc-tpsgc.gc.ca

Tel:       1-866-602-0403 (toll free)

 

For more information about the Canadian Innovation Commercialization Program visit the Buy and Sell website.

 

For information about the events which innovators can attend to find out more visit Buy and Sell’s events listings.

 

To view the call for proposal visit the government’s e-tendering service, Merx.

Ask the Expert - How to do Business with the Federal Government 

Small Business BC is offering free one-to-one consultations with a Supply Officer from Public Works and Government Services Canada as part of the Ask the Expert series.  Free consultations will take place at the Small Business BC offices in Waterfront Station, Vancouver or via Skype on August 23rd, 2011.

 

These 30 minute sessions allow you to ask the specific questions about the purchasing process, where to find opportunities and how to respond to proposals.

 

Find out more: Ask the Expert - How to do Business with the Federal Government. 

Let us Help Promote Your Innovative Concept

Small Business BC is looking for entrepreneurs who are looking to start a business or who have been in business less than a year, to nominate themselves for the Best Concept Award at this year's Successful You Awards.  If you have a viable business concept that describes the business, its product, the market it serves and the business' competitive advantage - then why not nominate your business.

 

Nominees from last year's awards contest received over $200,000 in media exposure.  Brian and Corin Mullins, winners of the Best Concept Award 2010/11 for their business Holy Crap, have attracted accolades from across Canada since winning the Successful You Award and now plan to duplicate their company's prototype facility and employment plan around the world.  So what are you waiting for? 

What is Involved?

What is Involved? 

Contracts will be awarded through an open and fair procurement process; issuing call for proposals through the government’s electronic tendering service.

 

Once your product or service has been successfully chosen as a pre-qualified innovation, the Public Works and Government Services Canada (PWGSC) will match you with a relevant government department.  This department will then work with you to test your innovation, provide feedback and help develop your product or service further.  They will then provide guidance on how to do business with the government and moving the innovation into the domestic and international markets.  

 

It is worth noting however that even if a good "fit" is found, there is no guarantee for an awarded contract.  Successful awards are dependent on the contract negotiations. 

How Can You Participate?

The second call for proposal has been issued and will close on Thursday, August 18, 2011.

 

To participate in this call for proposal CICP recommends that innovators attend one of their upcoming events taking place across the country.  At the event you will be able to discuss, with the attending government departments, whether the program is a good fit for your product or service and find out about the overall procurement process and program.

 

The next event in BC is scheduled for Friday, August 12, 2011 at theAerospace, Defense, Information and Communication Technologies Expo at Abbotsford Airport. 

 

To order the call for proposal and participate in the program visit the Merx website.

What Types of Business Participated in the First Round?

From the first round of proposals which closed in November 2010, there are 27 pre-qualified innovations from Canadian companies, including one from Richmond, BC and another from White Rock, BC.  PWGSC is working with the relevant government departments at the moment to match these innovations to their needs. 

Innovations from this round include: An LED street light system with enhanced GPS technology from a business in Nova Scotia; a radiation-detecting speed bump from Ontario; and a software tool that generates geo-registered products for surveillance and reconnaissance from airborne video.  For a full list of the 27 prequalified innovations visit the Buy and Sell website.

$500,000 OPPORTUNITY TO TEST AND DEVELOP YOUR INNOVATION

Have you developed an innovative product which has not yet been sold commercially? Is your product related to the environment, health, security or is an enabling technology?  If yes, you may have an opportunity to gain up to $500,000 in funding from the Government of Canada.

The Canadian Innovation Commercialization Program (CICP) 

The CICP is a new initiative launched as part of the Government of Canada’s 2010 Budget.  The program is part of the government’s commitment to promote economic growth, helping Canadian businesses develop and test their innovative products or services with the Canadian Government before taking them to the marketplace.  

Who is Eligible?

The program is intended for businesses that have innovative goods or services that are market-ready, but have not yet had commercial sales.   By issuing a series of call for proposals, the program hopes to bridge the pre-commercialization gap by purchasing these innovations.  

 

All proposals must be under $500,000 (excluding tax and any associated delivery costs) and must fall under the following priority areas:

• Environment
  E.g. environmental sampling, spills and environmental emergencies, Energy conserving control systems, Waste reduction systems and low impact technologies.
• Health
  E.g. food supply, monitoring and tracking adverse health effects, regulation of pharmaceuticals and medical devices, and assisted human reproduction.
• Safety & Security 
  E.g. surveillance and intelligence gathering, emergency management systems, defense against chemical and biological agents and sensor technology and applications for police or military users.
• Enabling technologies
  E.g. Nanotechnology-based consumer products, genetically modified plants, communications equipment and on-line information management tools

For a full list of the priority areas of the program visit the Buy and Sell website. 

 

All bidders must have a registered Canadian business and certify that at least 80% of their innovation are comprised of Canadian goods or services.  The bidder must also certify that they own the intellectual property to the innovation.

When I first started

When I first started building a fragrance community around my video blog, FragranceTalk.com, I didn’t have a single member, follower, or fan.  It was hard trying to create a community from nothing, and at times I felt really lost. However, along the way I managed to connect with likeminded individuals and build a strong community to support my business.

Once my community was established, it was amazing how they were there to support my brand, becoming ambassadors and helping my business to grow. Members of my community are always the first to comment on my videos and blog posts and they’re always supporting me when I need it the most.  Building a loyal community takes time and effort, but it’s definitely worth it! Here are some tips to help you get your community started.

Decide who you want to be a part of your community

Knowing your community members is like knowing your target market; you want to make sure that you have the right people supporting you. Ask yourself these questions: Where do they spend their time online? What do they care about? What is their character? Where do they want to be in the future? 

Decide the focus of your community

Will it be your brand, a topic, or a social movement?  If it’s revolving around your brand, it’s a bit harder, because the community isn’t surrounded by a specific hobby or interest that draws your members in. My community members were interested in fragrance and that was all I needed to focus on – great fragrances that are unique and of high quality; fragrance lovers noticed and followed.

 

Building a community around your brand can be challenging, but doable – especially if you’re confident about your product or service and how it adds value. Focus on how your product or service benefits your customer. Perhaps you can relate it to something that your target market is interested in. For example, if you’re building a community around your maternity store, build a community of new mothers so they have a place to discuss and share pointers.  You could even focus it more, by building a community around eco-moms (mothers who buy and use only natural, eco-friendly baby products). Your options are endless as long as it relates to your business in a way that logically and effortlessly brings your brand to top of mind.