Small Business Loan Program

 

Need Funds to Launch or Expand Your Small Business?

In June 2015 the Community Foundation for Kingston & Area entered into the area of social impact investing with the launch of its First Capital Community Development Loan Program.

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.

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. 

 

Eligibility:

  • 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, 275 Ontario Street, Suite #100, Kingston, ON  K7K 2X5.  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, 275 Ontario Street, Suite #100, Kingston, ON K7K 2X5.  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

Frontenac Community Futures Development Corporation

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.

Futurepreneur Canada

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.

KEDCO Small Business Development Centre

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.

Queen’s Business Law Clinic

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 Asset Development

Rise provides low interest small business loans, training, and mentorship to entrepreneurs with a history of mental health or addiction challenges.

Skebo & Associates Inc.

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.

 

Donate

 When you give to the Community Foundation you can have confidence that your community will continue to benefit from your gift for many years to come.

2023 Year End Tax Tips

 Both the federal and provincial governments offer donations tax credits that, in combination, can result in tax savings of up to 55% of the value of your gift in 2023, depending on your province or territory of residence. With total cash donations up to $200 in a year, the federal donation credit is 15% of the donation amount. For total donations exceeding $200 in a year, the federal donation credit jumps to 29% (33% to the extent taxable income exceeds $235,675) of the donation amount. Provincial donation credits are also available and the total credit may be up to 55% once total annual donations exceed the $200 in a calendar year.

December 31 is the last day to make a donation and get a tax receipt for 2023. You can help a wide range of charities with a single gift to our endowed Community Fund, support your favourite charity or cause by giving to one of our over 225 funds, or establish your own fund.

Credit Card or VISA Debit Card

If you’re ready to make your gift now, then use our secure online giving page. You have the option of choosing any one of our funds, giving ‘in memory of/in honour of’ instructions, and more. Or, if you prefer, you can simply call 613-546-9696 to make your donation over the phone using your Visa, MasterCard, or AMEX, or VISA Debit card. You can make a one-time gift, or sign up to make a regular monthly donation.

Cheque

Please make your cheque payable to Community Foundation for Kingston & Area (or “CFKA”), and write your intended fund in the memo line.  Drop it off or mail to: 275 Ontario Street, Suite #100, Kingston, ON, K7K 2X5.

Publicly-Traded Securities 

Gifting publicly-traded securities, including mutual funds and segregated funds, with accrued capital gains “in-kind” to a registered charity or a foundation not only entitles you to a tax receipt for the fair market value of the security being donated, it eliminates capital gains tax too. You should plan gifts in-kind well before year end, to allow for sufficient time to make arrangements. A gift of publicly-traded securities is the transfer of ownership of stocks or bonds to the Community Foundation for Kingston & Area. If you own shares that have increased in value, 50 per cent of the capital gains are taxable. However, if you donate these shares in-kind to CFKA, the gain is tax-exempt. Learn more.

Form 1: Direction to Transfer Securities or Mutual Funds Electronically as a Charitable Donation Complete Form 1 to give your financial advisor/broker the instructions to make the gift to CFKA. The form contains all the information your advisor will need to make the transfer. They will then submit this form to our broker at CIBC Wood Gundy to advise that the transfer is pending.

Form 2: Notice of Transfer of Securities
Complete Form 2 and send it to CFKA to advise us of your gift, and instruct as to what you would like your donation to support.

Proposed Changes to Alternative Minimum Tax

Tax Element Current AMT Regime Proposed AMT Changes
Tax Rate and exception level 15% flat tax rate on an adjusted taxable income in excess of a $40,000 exemption 20.5% flat tax rate on an adjusted taxable income in excess of a $173,000 exemption
Calculating the adjusted taxable income for AMT purposes 100% of non-refundable tax credits included. 50% of non-refundable tax credits included.
Treatment of donations of publicly listed securities 0% of capital gains from donations of publicly listed securities included. 30% of capital gains from donations of publicly listed securities included.

Your AMT may be higher in 2024 (compared to 2023) if your taxable income is over about $173,000, and you have income taxed at lower rates than ordinary income, or deductions or credits that reduce taxes payable, including: Capital gains, Stock options,  Canadian dividends, Unused non-capital losses, net capital losses, or limited partnership losses from prior years, and  Non-refundable tax credits, including the donation tax credit. Speak to your tax profession to see how AMT could affect your situation in 2024, and, if appropriate, to consider triggering a gain or exercising employee stock options.

Contact us at 613.546.9696 or giving@cfka.org if you need any further assistance.

 

Community Foundation for Kingston & Area