As part of the Community Futures program, the Business Help Centre (CFDC) of Middlesex County provides term loans to revenue-generating, not-for-profit organizations that have had difficulty finding financing elsewhere on reasonable terms.
Who can apply for this loan?
Loans up to a maximum of $250,000 can be made to non--profit organizations in Middlesex County (excluding those operating exclusively 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 submit:
Completed Business Plan
Pro Forma Cash Flow
Profiles of all principles and Board Members
a copy of the Charter or Articles of Incorporation
last audited financial statements
information regarding the organization’s mission/mandate
Business Plan Outlines and loan applications are available on the Forms page, or by contacting our office.
What is included in a successful application?
Successful applications must demonstrate:
Employment creation or maintenance for predominately local residents
A firm commitment to the operation of the organization, including an investment of funds and resources
Ability to repay the loan by way of revenues generated by the provision of local programs/services and fundraising (when applicable)
Sufficient human resources to operate the organization
Adequate security which may include a combination of corporate assets
What fees are charged?
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.
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 interest rate is charged?
Interest rates are fixed for the term of the loan at a minimum of 5.0% and are determined on a loan by loan basis.
What are the repayment terms?
Loans are subject to a maximum five (5) year term, with a maximum amortization period of fifteen (15) years.
All loans are subject to regular monthly payments however, remain open for repayment, in full or in part, at any time, without penalty.