Small Business Loans Ontario Update: SOFII Unsecured & Secured Loans
The Southern Ontario Fund for Investment in Innovation (SOFII) is a $20M program funded by FedDev Ontario. Mentor Works has profiled this SOFII small business loans Ontario frequently over the past several months but continue to receive queries from business owners that grapple with the decision of whether or not to apply for this Ontario government funding program. Here we have listed a few points that should help to add some clarity and lead you to make the right decision:
SOFII Small Business Loans Ontario: The Deal Breakers:
- The (up to) $500K Ontario business loan is dispersed in full once the contribution agreement has been signed. Prepare for 25-70 business days for approval. – The time period for approvals range for the EASTERN and WESTERN CFDC groups and may vary.
- SOFII Ontario business loans are a 1:1 match which means that if your goal is to receive half a million dollars then you will be looking to scope a $1M project spend. If you are awarded less than $500k, then a 0.5:1 match will be required as this implies a 100-200% leverage.
- The Regional Advisory Committee will let you know whether your project has been approved in approximately 15 business days.
- The interest range is dependent on the region that is applied to – EASTERN and WESTERN CFDC as they each have separate contribution groups with FedDev Ontario. In Eastern region, for example, the average loan rate is 9.7% currently whereas the official range is suggested to be the range of 8-12%. The interest rate is very dependent upon how we “de-risk” your project.
- The Advisory Committee’s decision will weigh heavily upon the expectation of job creation resulting from the proposed project.
Ontario Small Business Loans: Next Steps
If you are interested in learning more about SOFII small business loans choose from one of the following resources for more information, or click on “Get Started” to reach a Canadian government funding expert.
Mentor Works Canadian Government Funding Experts
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