Our funding partner Alterna Savings arranges loans to start or expand a business. If you are looking for small business financing, we are a good place to start due to our extensive community partnerships.
Small Business Loans
- Current maximum of $15,000.
- Interest rates on the loans are usually current bank prime rate plus 2% to 6% max.
- Loan repayment terms normally range from 12 to 60 months.
- Fees to Borrowers.
Upon approval of a new loan OCLF will charge a one-time due diligence fee of 3% of the value of the loan, up to a maximum of $250.
OCLF considers applicants, which other lenders will not. This includes applicants who have encountered credit difficulties in the past or have not yet established a credit history. There will nevertheless be certain minimum standards. All applicants will be subject to a credit check and their eligibility assessed by OCLF and its lending partners on a case-by-case basis.
- Proof of identity (driver’s license, passport or similar photo identity document).
- Business plan including a two-year cash-flow projection.
- Provide two References (business or academic contacts only).
- A current resume.
- If applicable, provide business registration document.
You are eligible to apply if:
- You are 18 years or older.
- You live in the City of Ottawa and have permanent legal status in Canada.
- Own no less than 51% of the business in the case of the corporation and have the signature of all the shareholders; in the case of a partnership all partners must be willing to co-sign for the loan; in the case of a non-profit, the President and two officers with signing authority will make an application to OCLF and in the case of a co-operative, all members will make application to OCLF.
- Demonstrate an ability and commitment to repay the loan as confirmed by credit checks and references.
- If applicable, have been discharged from bankruptcy for at least 2 years, as confirmed by a credit check.
- Agree that OCLF will be the first secured party for existing equipment and vehicles that may be pledged as security for the loan.
- You have no outstanding debts on which there are payment defaults.
- You can submit a business plan including start-up costs and a monthly cash-flow projection for the next two years. In the case of an expansion of an existing business, financial statements will be required.
Your Business must:
- Be located in or around Ottawa.
- Be, or will be, a legally registered sole proprietorship, partnership, corporation or co-operative.
- Use the funds to start or expand business operations.
- Not be using the funds to consolidate debt.
If interested contact us directly at 613-366-2159 ext. 1 or at email@example.com.