Ministry of the Economy

The SBLA program started in 1989 and makes funds available to entrepreneurs through local, community-run associations. Financing is available up to $20,000 for new and existing businesses that may have difficulty obtaining traditional financing.

Benefits

These associations help diversify Saskatchewan’s economy and bolster community economic development. Many Saskatchewan success stories have their roots in an SBLA loan, with the positive effects reaching far beyond the businesses being helped.

What is an SBLA?

An SBLA is a community-based interest group, co-operative, corporation, or Rural Development Corporation that has been incorporated as either a “for profit” or “non-profit” under The Business Corporations Act or The Co-operatives Act.

Once approved and incorporated, an SBLA may access an interest-free revolving line of credit of up to $200,000 from Enterprise Saskatchewan, and in turn can use this line of credit to make loans of up to $20,000 to new and existing businesses. To establish a Small Business Loans Association in your area, contact the SBLA Program Office at sbla@enterprisesask.ca or 306-787-4707 for information and preliminary questions.

Who can borrow from an SBLA?

An individual business is eligible for the maximum $20,000 loan under the program, including any entrepreneur who has experienced difficulty in obtaining financing through traditional means (bank or credit union). SBLA loans are available for entrepreneurs with a new business idea, the development of a new business or the expansion of an existing business. An SBLA generally judges businesses on their ability to create jobs and to add services to communities. The intent of the program is to provide help to entrepreneurs who otherwise might not get started.

Types of businesses not eligible for assistance are those engaged in direct farming, exploration (e.g. mining and oil extraction), residential real estate and multi-level marketing. Charitable organizations do not qualify for assistance.

Businesses can use SBLA loans to purchase assets, such as equipment, renovations or start-up inventory. The loan cannot be used for operating expenses or for repayment of existing debt.

What are the terms of an SBLA loan?

Loans are granted at competitive interest rates, which vary with each association, up to a maximum of 10 per cent per year. Businesses have between two and five years to repay their loans.

The principal repaid on a loan is returned by the SBLA to Enterprise Saskatchewan and the SBLA retains the interest to cover administrative costs and may contribute to worthwhile projects within the community.

How do I apply for a loan?

Contact the SBLA closest to you for program information and application forms. If you do not know the SBLA in your area, contact the SBLA Program Office at sbla@enterprisesask.ca or 306-787-4707 for referral to the association nearest you.

You will be required to provide to the association:

• completed application;
• business plan (including financial projections);
• demand promissory note;
• general security agreement; and
• administration fee.

The SBLA will then review and approve or decline your loan.

What SBLA clients had to say?

“My business was able to start up with some of the best equipment in the industry, which allowed me to deliver a higher standard of service.”
Blair Sagon, Sagon Trucking, Biggar

“Go for it. I found my SBLA was very supportive. We used our loan to purchase a commercial cooler – and that has helped us a lot!”
Beth Traynor, Beth Traynor’s à la Carte

“It allowed us to increase inventory and offer customers a greater selection – which is imperative to our success.”
Paula Woodhouse, The Giggle Factory, Saskatoon