For our internal purposes, a microloan is the term used to describe a loan that is of an amount between $15,000 and $30,000.  The General Manager of our CFDC has the authority to approve a microloan without seeking secondary approval from the members of the Board of Directors who sit on the loans committee.  

What can funds be used for?

Financing can be used for the purchase of fixed assets, leasehold improvements, inventory, or working capital.

What does a successful application look like?

Applicants must be able to demonstrate the viability of the operation.  For a new business, we will want to see a basic business plan (we can help guide you on how to prepare this if necessary), including your financial projections.  For an existing business, we will need to see your past financial statements.  Further considerations will include:

  • Our perspective on your ability to repay the loan
  • An equity investment in the start-up and/or expansion of the business in an amount of no less than 25% of the value of the undertaking;
  • Our perspective on your capability to operate and manage the business
  • Your firm commitment to the success of the operation

Are there administration fees associated with a microloan?

Yes. All loans are subject to a non-refundable application fee, payable at the time of application.  The administration fee is calculated as 1% of the requested loan amount, or $50 (whichever is greater).

All loans are also subject to legal and registration fees. Applicants are responsible for all legal costs to complete their loan securitization package, however these funds can be paid from the proceeds of the loan.  Legal costs vary but will be function of the complexity of the loan security.

All approved loans must be life insured.  This insurance is arranged by our office based on the outstanding principal balance of the loan. 

Term renewals are subject to 0.5% administrative fees at the time of renewal.

What is the interest rate?

Interest rates are fixed for the term of the loan.  Each microloan application is assessed individually and interest rates vary depending on the risk level.  Interest rates will never be less than 6.0%.

What are the terms of repayment for a Microloan?

Microloans are subject to a maximum five (5) year repayment term.  Payments must be made monthly.  The loan may be re-payed in part or full at any time, without penalty.

To apply for a Microloan, please start here: