Financing in Canada Rick Staab December 17, 2016 Business ValueMags President Andrew Degenholtz has been considering distributing in Canada for a long time now. The economy is arguably more stable than that of the United States and there are some very profitable and interesting markets to be considered in Canada. However, he understands that the ValueMags brand name is not at all known in Canada and he would have to completely remarked himself. There are several forms of funding available to start-ups. In this case ValueMags would be considered a start-up within Canada. Several small business financing is available, such as the financing program developed by Industry Canada, financing solutions offered by chartered banks as well as government grants. The government of Canada provides a document entitled, “Canada Small Business Financing Program” otherwise referred to as the CSBFP, most start-up or small businesses (for-profit) in Canada are eligible to apply for loans under this program, so long as their gross revenues are less than $10 million. These businesses can be organized in which ever structure, as previously discussed, sole proprietorship, partnership or corporation. Listed below are the nature of loans available under this program. the purchase or improvement of land or buildings used for commercial purposes; the purchase or improvement of new or used equipment; and the purchase of new or existing leasehold improvements (i.e. renovations to a leased property by a tenant). the registration fee In regards to what is not covered by the CSBFP, financing for items such as goodwill, working capital, inventories, franchise fees and assets that a given company holds is not available. The appropriate amount for financing will be discussed amongst a meeting with a lender However, the maximum this program will loan is $1 million. As noted on the CSBFP program website, the registration fee under this program is 2% of the total amount of the loan. For example, if the loan offered is $1 million to ValueMags, the registration fee at this point is $200,000. When discussing the interest rate on the registration of this program, it can be either variable or fixed. If it is a variable rate, the maximum one can be charged is the lenders’ prime lending rate and an additional 3%. ValueMags has a lot to consider and more information will be available soon on their blog!