LENDING DETAILS
How Decisions Work
The Community Futures Shuswap Board of Directors appoints a Business Development Committee (BDC) to provide expertise, business acumen, and community input into the lending activities of the Community Futures Shuswap. The BDC is currently represented by Community Futures Shuswap Board of Directors: Ron Langridge, Marie Gray, Doug Murray, Jennifer Dies, Cookie Langenfeld (Chair), and Community Members: Gord Erickson, Rob McKibbon, Charlie Burt and Shawn Rogers.
The Board of Directors delegates authority to this committee to oversee the following responsibilities as defined in the BDC terms of reference for this committee include:
Ensure investment policies and ethics are being observed;
Review investment/credit philosophy and policies and make recommendations for changes and enhancements;
Review all loan applications submitted to the Loans Program and approve or reject such applications including confirmation of specific terms and conditions to be set out in agreements with clients who receive financial assistance;
Review credit delinquency reports, non-performing accounts, loan loss provisions, and proposed/actual write-offs. Evaluate and recommend foreclosures, sales, legal action, revision of terms and conditions of loans;
Review any instances of fraud, theft, or embezzlement;
Monitor the diversity of the loan portfolio in an effort to meet the Loans Program’s objectives relative to risk and sectoral representation.
Small Business Loan Applications - What do we look for?
While each business is unique and the application circumstances are specific to the individual(s) involved, generally speaking the following criteria are considered when the BDC reviews loan applications:
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Market potential and future economic viability of the business
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Employment creation or maintenance for predominantly local residents
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Location of the business in the Community Futures Shuswap region
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Reasonable personal financial investment in the business
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Ability to repay the loan and meet operational cash flow needs
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Ability to reinvest if needed in the future
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Adequate security for our investment in the venture
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Personal credit-worthiness of the business owner
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Competent management, experience, or education in the industry
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Historical performance of the existing business
Application Process
Each loan application requires:
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Applicant Information
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A Business Plan
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Cash Flow Projections
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Picture Identification
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Your Personal Resume
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Financial Statements (if an existing business)
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Personal tax returns for last 3 years, including current year.
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If an incorporated company, a complete copy of the minute book.
(On-line incorporations won’t be accepted.)
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Proof of registration/insurance for vehicles/recreational items listed as security
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Business Registration Documentation and Business Identification Number
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A Guarantor Loan Application may also be requested
The application forms, business templates and other resources for your Business Loan Application can be found in our Business Toolkit. You can also connect with our office to access additional supports
Interest Rates & Terms
Interest rates are calculated on the basis of the prevailing Bank of Canada prime rate plus a variance depending upon the level of risk involved.
Upon authorization, our loans are subject to administration fees to cover related costs, and applicants are responsible for any direct legal costs for loan security documentation.
Maximum repayment is 5 years or 15 years with mortgage security.
There is no prepayment penalty.
Seasonal payments may be arranged, depending on specific business conditions
Application Fees
In order to proceed with a Loan Application process, a $150.00 processing fee per applicant is required upon receipt of the application.
Applicants who are successful in moving into Phase 2 of the loan process will be responsible for a non-refundable Loan Processing Fee of:
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2% of loan amount for regional loans 2.5% for Syndicated Loans
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Legal costs, if applicable, will be in addition to the 2% and will be deducted from the monies that are disbursed
Youth Lending confirmed under the 4-H lending program is subject to an administrative fee of 2%
Administrative fees associated to the 4-H lending program are reinvested into the 4-H program