Small Business Loans

Access to Capital Program

Our Access to Capital program includes a $9 million investment fund, from which LAMBAC offers small business loans of up to $300,000 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, Carolyn Dearing, can be contacted by phone or email to set up an appointment for a preliminary meeting in Gore Bay or Espanola.

How Our Business Loan Process Work

You are eligible for a business loan 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. In either case, if you are unable to secure funding from traditional sources, you can apply for a business loan through LAMBAC. See below for full eligibility requirements.

Business loan applications are reviewed by LAMBAC’s Board of Directors, who make the final decision about whether to approve your business loan. The Board of Directors is made up of local volunteer business owners and municipal leaders who meet monthly. To be considered, your business loan application must be submitted to LAMBAC two weeks 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 business loan 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 business 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 small business loan can occur.

Business Loan Eligibility

As stated above you are eligible fpr a business loan 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 arranged to be automatically withdrawn from your bank account once per month.

Current Interest Rate = 7.0%

Our business loan 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 20 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).


If you are an existing business please attach the following documents to your business loan application package:

Municipal Tax Certificate showing taxes are current
Proof of Payment of Government remittances
Statement showing HST is current

If your business loan is approved, you will be expected to supply / comply with some or all of the following, depending on your particular applications.

Serial numbers, registration, VIN numbers presented for verification
Property mortgage(s). Survey or title insurance must be provided
Report from CPIC (Canada Police Information Centre)
Creditor Loan Life Insurance.
The spouse / partner of the applicant will be expected to sign all documents and will require Independent Legal Advice

In addition, business loans are disbursed through LAMBAC’s lawyers. All legal costs are your responsibility.
You may also require your own lawyer to act on your behalf.

Next Steps
After Applying for Your Business Loan

The Business Load 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.

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

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