You’ve gotta love when the Government releases a new business loan program that’s next to impossible to qualify for.
One bank has officially made the impossible possible to get a business term loan of up to $250k!
Previously, banks were requiring criteria that made it very difficult for black business owners (not to mention any other shade of business owner) to get approved funding. Starting with the minimum 650 credit score with a virtually unblemished credit history, to the personal net worth criteria that couldn’t be achieved without owning a home, to requiring more in savings and investments that most Canadians have even on their good days.
Thankfully, one bank has lowered or dropped these unattainable prerequisites for black-owned businesses in an effort to truly support the Government’s initiative to increase the number of businesses owned by black Canadians. Statistically, the vast majority of businesses are owned by white entrepreneurs, and we at PFG Financial agree that pushing the needle toward equal opportunity is a rather excellent idea.
This bank has not only lowered the minimum credit score to 580, but they also do NOT require home ownership (although it’s ideal) OR a percentage of cash in savings (although having 10% of the loan amount in savings strengthens the application), making this loan easier than ever to qualify for!
The only amount in savings that would be required is whatever’s needed to have a positive net worth of $1.
Simply put, this means that if someone owes $1000 on personal credit cards and lines of credit they would need to have $1000 + $1 in savings or investments. That’s Assets minus Liabilities = $1+.
They’ve also eliminated the requirement that the business must operate out of a commercially leased space, opening things up for home-based businesses.
SUMMARY OF PROGRAM & QUALIFICATIONS
- New and existing Canadian businesses in an sector or industry.
- Up to $250k loan, of which working capital up to $100k or 30% of Gross Revenue.
- Interest-only option available for the first year.
- Interest rates based on the loan amount. Click the below link for the breakdown.
- Terms and amortization up to 10 years (5 years for working capital).
- Credit score 580+.
- Positive net worth (no home ownership required).
If your Canadian business is >51% owned by black Canadians, click this to check out our Black Entrepreneur Loan Feature Sheet for all the details.
Got questions? We got answers! Contact PFG Financial today!
