As part of the Community Futures program, the Business Help Centre (CFDC) of Middlesex County provides term loans to small businesses that have had difficulty finding financing elsewhere on reasonable terms.
How much can I borrow with a Micro Loan?
Under our Micro-Loan Program, loans up to a maximum of $25,000 can be made to new or existing businesses in Middlesex County (excluding those located within the City of London) that will be creating new jobs or maintaining existing jobs in the local area.
What can the funds be used for?
Financing can be used for the purchase of fixed assets, leasehold improvements, inventory or working capital.
What is the application process?
Applicants must provide business details that prove the viability of the operation.
Past financial statements (if applicable), as well as projections, must be submitted with the application.
What does a successful application include?
A successful application must demonstrate
the ability to repay the loan;
an equity investment in the start-up and/or expansion of the business in an amount no less than 25% of the value of the undertaking;
the capability to operate and manage the business;
a firm commitment to success of the operation.
What are the costs with this loan?
All loans are subject to a non-refundable application fee, payable at the time of application. The fee is 1% of the total loan amount requested or $50 (whichever is greater).
All approved loans are subject to legal and registration fees. Applicants are responsible for all legal costs to complete the loan securitization package. These funds can be paid for from the proceeds of the loan.
All approved loans must be life insured. This insurance is arranged by The CFDC of Middlesex County, based on the outstanding principle balance of the loan.
Term renewals are subject to 0.5% administrative fee at time of renewal.
What is the interest rate?
Interest rates are fixed for the term of the loan, and start at 6.0%. Each loan application is assessed individually and the interest rate is based on various factors.
What are the terms of repayment for a Micro Loan?
Micro-Loans are subject to a maximum five (5) year term.
All loans are subject to regular monthly payments however, remain open for repayment, in full or in part, at any time, without penalty.