Small Business Loan Program
Need funds to launch your small business start-up?
Looking to expand your current small business?
Need additional training/certification?
The purpose of this small business loan program is to support community economic development in Kingston and area by providing financing to local entrepreneurs to help them establish or grow their business or enterprise. Specifically, this program is designed to provide loans to individuals who have strong business plans, but for various reasons (such as lack of established credit history, age or geography) are unable to obtain sufficient financing through conventional lenders or other existing loan programs.
Through a partnership with the Alterna Savings Community Microfinance Program and funds donated to us by First Capital Challenge Inc., the Community Foundation will provide loan guarantees of between $500 and $10,000 to successful applicants.
New in the fall of 2016 the loan program was expanded to help people that need funds to obtain training or certification to launch a business or expand an existing business. Business education loans offered range from $500 to $5,000.
This program has been designed to work as a compliment to, and in collaboration with, existing organizations and programs to give aspiring entrepreneurs in our community the best chance at success. (See list of resources provided below.)
Loans will be made at current market interest rates; based on the prime lending rate plus a percentage reflective of the risk associated with the loan. Earnings from these loans will be used to support the charitable purposes of the Foundation, meaning this program is a true win-win for both entrepreneurs and our community!
For a history of this program please click here.
- 18 years of age or older.
- Legal resident of Canada (either as a Canadian citizen or as a permanent resident or a legal entity controlled by a legal resident of Canada who is either a Canadian citizen or permanent resident).
- Carrying on business within the Municipality of Kingston, Frontenac County or Loyalist Township.
- Have a strong business plan and a commitment to its success.
- Unable to access sufficient financing through conventional lenders or other loan programs.
Process for Loan Program:
Step 1: Complete the Loan Application Form and Profit and Loss Worksheet. Submit your completed, signed Loan Application Form and Profit and Loss Worksheet in hard copy to the Community Foundation for Kingston & Area, 165 Ontario Street, Suite #6, Kingston, ON K7L 2Y6. You will be advised within a few weeks of submitting this application form if you are invited to progress to the next phase of the application.
Step 2: If invited, submit your full Business Plan and complete an Alterna Savings Consumer Credit Application. At this point in the process, a contact will be provided to you to act as your liaison throughout the rest of the application process.
Step 3: If your proposal is accepted, you will be invited to come and pitch your idea to the loan review committee in person. This gives you a chance to show your passion for and commitment to your business/enterprise, and answer any outstanding questions before the committee makes its final recommendation.
Step 4: You will be notified of the final decision. If you are granted a loan from this program, you will need to become a member of and open an account with Alterna Savings, the organization which will be administering the loan. A contact from Alterna will be provided to you to facilitate this process.
Process for Business Education Loan:
Step 1: Complete Business Education Loan Application Form. Submit your completed, signed loan application form in hard copy to the Community Foundation for Kingston & Area, 165 Ontario Street, Suite #6, Kingston, ON K7L 2Y6. A credit check could be run at this time.
Step 2: At the discretion of the committee, you may be invited to come in person to discuss your need for the loan and how it will help you with your existing business or new business.
Step 3: You will be notified of the final decision. If you are granted a loan from this program, you will need to become a member of and open an account with Alterna Savings, the organization which will be administering the loan. A contact from Alterna will be provided to you to facilitate this process.
There is no set application deadline. Applications will be accepted on a rolling basis, and evaluated on their own merit.
We recognize and appreciate the importance of keeping your business ideas and personal information confidential. All individuals who will have access to your application have signed confidentiality agreements. A copy of this agreement is available on request.
If you have questions about this program please contact us at 613.546.9696.
Other local resources that can help you develop your business idea and get it off the ground
Frontenac CFDC is a non-profit organization offering free business advice and commercial financing to entrepreneurs and those looking to start a business in the Frontenac’s and supports community based projects.
Futurpreneur Canada supports young entrepreneurs (ages 18-39) with up to $45,000 in financing, an expert business mentor for up to two years, and resources to help you plan, manage and grow your business.
The Kingston Economic Development Corporation provides support services to both start-up and existing businesses in partnership with the Ministry of Economic Development and Growth. Support services help with business planning, financial forecasting and analysis, marketing & sales strategies and connections to community resources. Business Fundamentals for Start-Ups is offered monthly and recommended for new business owners or those thinking of starting a business. The Business Development team works closely with existing businesses on growth strategies through facilitated workshops and consultations.
Tel: 613-544.2725 ext. 7222 Email: kingstonsmallbusiness.com
Visit: www.kingstoncanada.com/events to register for workshops.
The Queen’s Business Law Clinic operates year-round to provide free legal services to a wide variety of individuals, businesses and non-for-profit organizations in southeastern Ontario who would otherwise have difficulty affording legal counsel.
Rise provides low interest small business loans, training, and mentorship to entrepreneurs with a history of mental health or addiction challenges.
Skebo & Associates Inc. is a private corporation dedicated to providing quality training and support to assist in the growth and development of new small businesses in Eastern Ontario.