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programs

Business Loans Program

 

 

LAMBAC has several loan programs that may meet your business needs. There are no application fees. If you are unhappy with the terms offered by your current lender, come in and compare, perhaps we can assist you with one of the following programs.

 
 
  1. Standard Business Loan Program
    Our loan limit is $250,000. Loans are available to qualifying new or existing businesses in the LaCloche Manitoulin area. Amortization will be tailored to your cash flow and seasonal payments are also possible i.e. large payments in your busy season and smaller payments in the off season. Currently our rate is 6.6% including life insurance. We also have a preferred rate of 5.1% including life insurance if you meet certain security criteria. All LAMBAC loans are open and can be repaid without penalty at any time.

  2. Larger Business Loans
    Special loans are available to larger businesses to a maximum of $500,000 through the North Eastern Ontario Investment Pool network. LAMBAC as a member of this network can process your loan application. It will be reviewed by an independent analyst so the process will take longer than our standard loan. All other terms are similar to the Standard Loan Program.

  3. Micro-loan Program
    Micro loans to a maximum of $5,000 repayable over 36 months are available to any business, larger or small. These loans are reviewed within the office and approved by the Manager. The application is short and the funds can be disbursed quickly.

  4. Youth Business Loan
    LAMBAC can help young people access a loan program for young entrepreneurs. An unsecured loan of up to $15,000 is possible and the entrepreneur is matched with a mentor to help develop the new business. Under some circumstances LAMBAC may contribute matching funds.
 

Please contact either of the LAMBAC office for more information on our Loans Program.

 

LAMBAC is a Community Futures Development Corporation with a mandate to maintain and create employment within it's catchment area. This is accomplished through consulting and investment services offered to potential and existing business.

 

Our Access to Capital program includes a $2 million investment fund, from which LAMBAC offers small business loans of up to $150,000 to any one business. Loans are subject to the interest rate set on the day of offer, they can be term or demand and seasonal payments can be negotiated. In its loan decisions LAMBAC balances sufficient security against the strength of your business plan.

 

LAMBAC's Loans & Business Development Officer, Maureen Strickland, can be contacted by phone or email to set up an appointment for a preliminary meeting in Gore Bay or Espanola.

 

 
 

How It Works
You are eligible if you are either an existing small business owner wanting to expand your business or an entrepreneur wanting to start a business in the LaCloche Manitoulin region, but in either case are unable to secure funding from traditional sources. See below for full eligibility requirements.

 
 
Call LAMBAC to make an appointment for a preliminary meeting regarding the possibility of a loan. No documentation is necessary for this preliminary meeting.
 
 

If the preliminary meeting is successful, you will be given an application package (in print and/or electronically), which explains everything that is needed for your loan application.

 

This package includes:
  • A list of the documents you will need to provide
  • The application for financing
  • A guide to creating a business plan (for further assistance in business planning see our Information for Entrepreneurs page.)
  • A "Statement of Personal and Business Assets and liabilities" form
  • A questionnaire regarding whether an Environmental Assessment will be necessary
  • A cash flow forecast guide
  • Life Insurance Form

 

Your application will be briefly reviewed to ensure you have provided all the necessary information before it is forwarded on to LAMBAC's Board of Directors.

 

 

Loan applications are reviewed by LAMBAC's Board of Directors, who make the final decision about whether to approve your loan. The Board of Directors is made up of local volunteer business and municipal leaders and usually meets on the second Wednesday of each month. To be considered, your application must be submitted to LAMBAC one week before that month's meeting in order to be circulated to the Board of Directors with sufficient time for them to review before they make a decision.

 

 

You will be notified of the results of the review of your application in the days immediately following the Board of Directors meeting. Usually your loan will simply be either approved or not approved, but there may be times when you will be asked to provide further information regarding or security against the loan for which you have applied.

 

If your loan is approved then you must arrange a payment schedule with our Loans & Business Development Officer. Then with final details completed the disbursement of your loan can occur.
 
 

 

Eligibility
As stated above you are eligible if you are either an existing small business owner in our coverage area wanting to expand your business or an entrepreneur wanting to start a business in the LaCloche Manitoulin region, but in either case are unable to secure funding from traditional sources.

Other than these simple criteria, LAMBAC balances whether the applicant has sufficient security against the strength of their business plan.

 

Payments & Interest Rates
Payments are usually arranged to be mailed or dropped off once per month in the form of cheque or cash to the LAMBAC office in Gore Bay.

 

Current Interest Rate = 6.6%

 

Our interest rate is set by our Board of Directors and is reviewed periodically. The rate is mandated by FedNor to be at least the prime rate plus two percent, since as stated above our loans are geared to the needs of small businesses that have been unable to secure funding through conventional sources, and are therefore in a higher risk category.

 

The repayment terms are usually 1 to 10 years in length. Various payment schedules can be arranged if needed, such as for example demand schedules (principal due upon the sale of certain assets) or seasonal schedules (interest only except during certain months).