Small Business Counseling

The Long Lake REDA can help you get started in Small Business. We have access to different publications on starting your own business, including specific information on a variety of types of business including restaurants, clothing stores, gas stations and much more. In addition to this we can also help you locate financing, assist with development of business plans, provide information on a variety of Government Programs and Services, and more!


Small Business Loans

Purpose

The Small Business Loans Association Program encourages diversification of the Saskatchewan economy and supports community economic development by making funding available, through community-run organizations, to non-traditional entrepreneurs. Thousands of small businesses have been assisted, and hundreds of Small Business Loans Associations (SBLA) have been formed, since the program was introduced in 1989. The Long Lake REDA currently administers three Small Business Loan Associations; the Long Lake REDA SBLA, the Manitou Beach SBLA, and the Watrous Community Economic Development Committee SBLA.

Eligibility

The following four areas are not eligible for lending under the Industrial Development Act:
1. Direct farming, direct selling or multi-level marketing;
2. Exploratory (mining, oil extraction);
3. Charitable organizations;
4. Residential real estate.

Interest Rate

The interest rate shall be fixed for the term of the loan. All loans administered by the Long Lake REDA have an interest rate of 6%.

Loan Size

The maximum size of loan, loan guarantee and/or equity financing to any applicant, or enterprise, may not exceed $15,000 as stipulated by the Saskatchewan Industry and Resources Investment Department.

Loan Term

The maximum term and amortization period of a loan shall be five (5) years. Repayment of all loans will normally be amortized over the agreed upon term. The term of a loan shall not exceed the estimated lifetime of the assets purchased with loan proceeds. The repayment schedule shall be flexible and at the discretion of the loans committee. There will be no penalty charge for prepayment of loans.

Security

All loans will be secured by way of Promissory Note which will be supported by security available and will be documented by legal council where deemed appropriate. The association will be flexible in taking security but may include mortgages on real property, personal property security agreement which include the assignment of book debts, personal guarantee, floating and fixed debentures and any other appropriate security including the assignment of insurance proceeds.

Twelve (12) month's post-dated cheques in the amount of the loan repayment will be required throughout the length of the term. However, direct deposit is preferred.

A $60.00 Administration Fee will be charged, which is sent to the Minister of Finance.