A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

Small Business Association Loan

What is a Small Business Loans Association (SBLA)?

Community-based interest groups, co-operatives, corporations, Rural Development Corporations and Regional Economic Development Authorities can form Small Business Loans Association. Under The Business Corporations Act or The Co-operatives Act, the Small Business Association Loans can incorporate as either "for profit" or "non-profit".

Once approved and incorporated, a Small Business Loans Association may access an interest-free revolving line of credit of up to $200,000. The Small Business Loans Association uses this line of credit to make loans of up to $15,000 to new and existing businesses.

What are the Terms of a Small Business Loans Association?

Businesses can use Small Business Loans Association to purchase assets, such as equipment. Money cannot be used for operating expenses or for repayment of existing debt.

These types of Loans are granted at competitive interest rates, which vary with each association up to a maximum of 10% per year. Businesses have up to five years to repay their loans. It is preferred that a client obtain all his/her loans from only one SBLA.

The Small Business Loans Association retains the interest to cover its administrative costs.

Small Business Loans Association can benefit businesses where asset ownership is important, or where fixed assets are growing in value. Small Business Loans Association can be tailored with flexible payment terms to meet budgetary needs and goals. CIT Equipment Rental & Finance has the flexibility to tailor programs to individual needs. We can customize financial packages that maximize the power of your assets. Our representatives will analyze your individual needs first, and then construct the best possible financial package for your company.

Who can borrow?

Any one business is eligible for the maximum $15,000 for Small Business Loans Association including any entrepreneur that has experienced difficulty in obtaining financing through traditional means. Businesses not eligible for assistance are those engaged in direct farming, exploration (e.g. mining and oil extraction), residential real estate and multi-level marketing. Charitable and non-profit organizations do not qualify for assistance.

In making Small Business Loans Association generally lender judges businesses on their ability to create jobs and to add services to communities. The ability of businesses to access traditional bank or credit union financing is also considered, as the intent of the program is to provide help to entrepreneurs who otherwise might not get started.