What are the 5 types of government loans?

As a small business owner in Canada you’re most likely aware that the Canadian government offers government funding to support it’s entrepreneurs. With that in mind, there are 5 types of government loans available on top of other funding programs such as government grants and tax breaks or tax credits.

While most government loans are similar they do have a few few differences each, but first:

The 5 types of government loans include:

• No interest government loan
• Low interest government loan
• Conditionally repayable government loan
• Guaranteed government loan
• Partial government loan

To learn more about the different types of government loans do contact our experts directly at 1-800-288-9691 as they will be able to explain the differences and show you what funding may be available for your specific type of business.

In brief a no interest government loan is exactly what it means, no interest applied on the money borrowed. The low interest loans are repayable loans that often have lower interest rates then the competing banks. Conditionally repayable government loans may or may not have interest rates attached but are repayable based on a condition. These conditions are negotiated by the program administrator and the business owner. For example: don’t pay the loan back until the business is successful.

The guaranteed government loans are a type of loan that many small business owners gravitate towards. It’s simply where the government acts as a guarantor or a co-signer on your loan.  Which is an excellent way to get a hear start in business. And finally the partial government loan is a loan contributed by a funding agency to help you startup or expand your business however it requires a partial contribution on your part as well. The government makes an equal or partial contribution to you.

There are plenty of small business funding programs. To get a better idea of which government funding programs (grants, loans and tax breaks are available to your business try the Funding Calculator Tool.