Applicants with new businesses will need to submit a business plan. Applicants with existing businesses should provide an outline of the proposed project, describing the benefit to the business. All applications must be accompanied by a 2-year cash-flow forecast, demonstrating that the business can afford both its operational and debt-servicing needs.
Yes. We require security for all of our loans. Our preference is to secure business assets, particularly those assets purchased with CFEK loan funds. Unlike most traditional lenders, CFEK will consider lending where the loan is under-secured (the collateral is worth less than the loan amount) when other factors support the decision.
Application packages are available by downloading from our website under Tools or by visiting the Community Futures East Kootenay office located at the Ground Floor Coworking Space, 100, 131 7th Avenue South, Cranbrook, BC. A detailed checklist of requirements is included with the loan application.
The term of the loan depends on how the funds are to be used and often reflects the life of the assets being financed. For working capital loans, the maximum amortization is 5 years, while for loans used to purchase equipment the amortization period can be up to 10 years. If you are purchasing real estate, expanding or making renovations to existing facilities or buying an existing business that includes real estate, your loan may be amortized over as many as 20 years.
Achieving a complete application package may take several meetings with the Investment Fund Manager in order to gather all the required information. However, a decision from the Board can be obtained within 4 weeks of completing this process. Following Board approval for the loan, advancing the loan proceeds can take from a few days (security prepared in-house) to a few weeks (security prepared by external counsel).
The approved amount will vary depending on the needs of the business. We can meet the needs of most businesses.
The interest rate for a loan is affected by the risk associated with the project. Typically, the interest rate will be higher for start-ups than for existing businesses. There are many ways in which you can reduce your initial interest rate, including:
Also, during the annual review of your loan, CFEK may offer your business an interest rate discount where we perceive our risk to be lower than when you first received your loan. Factors that help us to recognize reduced risk can include regular communication and strong financial performance.
Community Futures East Kootenay is a flexible, locally-based lender. Applications are reviewed by local business people who understand our unique business climate. We are usually willing to take more risk than a conventional lender, and can tailor payment schedules to meet cash flow cycles.
Your monthly payments are affected by the amount of the loan, the interest rate and the amortization period of your loan. You can use CFEK’s Loan Payment Calculator below to estimate your payments.
Loan Payment Calculator (162 KB)