Frequently Asked Questions

Who is the Ottawa Community Loan Fund?
How was the OCLF formed?
How is the OCLF funded?
How does OCLF differ from financial institutions?
Who is eligible to apply for an OCLF loan?
What are examples of business training programs?
What loan amounts are available?
What collateral is required?
What interest rate is charged on loans made by the OCLF?
What documentation is required to apply?
What is the OCLF loan review process?
Are there any fees?
How long does the review process take?
What does the OCLF finance?
Where can I get help to write a business plan?
What happens if I can not repay my loan?
Can I apply for another loan with the OCLF?
How else can the OCLF assist my business?
Where can I get an application form or more information?
How can I support the OCLF?

Q1. Who is the Ottawa Community Loan Fund?
The Ottawa Community Loan Fund (OCLF) is a not-for-profit corporation that provides aspiring entrepreneurs, internationally-trained professionals and social enterprise in Ottawa, Canada with a community-focused financing organization. OCLF’s purpose is to encourage self-employment, self-reliance and build a stronger community.

Q2. How was the OCLF formed?
The Ottawa Community Loan Fund is the culmination of over ten years of community effort in the area of community economic development. As a result of extensive community consultation in the mid 1990’s , access to capital to support micro-entrepreneurs was identified as a major priority for the Ottawa region. The requirement for such a fund has been reaffirmed by the Ottawa Economic Development Corporation’s Financial Working Group and most recently, by the City of Ottawa ’s Partners for Jobs Taskforce.

OCLF is governed by a Board of Directors comprised of local business people, professionals and entrepreneurs. Collectively these individuals bring a wealth of business experience and community commitment that enables OCLF to assist new and expanding businesses in the Ottawa region.

Q3. How is the OCLF funded?
The OCLF is funded by the community through donations, sponsorships and loans from private individuals, local businesses and non-profit organizations, such as the Ontario Trillium Foundation and the City of Ottawa .

Q4. How does the OCLF differ from other financial institutions?
The Ottawa Community Loan Fund is different from the chartered banks, credit unions and caisse populaires in a number of respects. Conventional banks offer a full range of financing services and operate to make a profit which is distributed among its shareholders. On the other hand, the Ottawa Community Loan Fund is a non-profit organization without shareholders. Services offered by the OCLF are fairly narrow in comparison to the banks, and limited to loans for business and re-training as well as referrals for business, individual and organizational support. The OCLF receives funding from a number of sources, which in turn is loaned out to small businesses, internationally-trained professionals and others. As OCLF loans are repaid, the money is re-circulated to new borrowers.

Q5. Who is eligible to apply for an OCLF loan?
To apply for an OCLF loan, the applicant must be at least 18 years of age and a resident of the City of Ottawa with permanent legal status in Canada. They must have completed an approved business training program or have the equivalent business experience, or have been accepted into an approved accreditation program for internationally-trained professionals.

Q6. What are examples of business training programs?
The following programs satisfy the training requirement for eligibility for the OCLF:

Individual seminars and workshops offered by the Entrepreneurship Centre
Self Employment Assistance programs for Employment Insurance recipients offered through HRDC
Self Employment Development programs for Ontario Works recipients offered through the City of Ottawa
Other business training programs will be assessed on an individual basis

Q7. What loan amounts are available?
OCLF loans are available in the range of $1,000 to $15,000.

Q8. What collateral is required?
Collateral requirements are assessed on an individual basis. In some cases, where collateral is not available, applicants may be asked to provide a guarantor or co-signor.

Q9. What is the interest rate charged on loans made by the OCLF ?
The OCLF lends to individuals based on the viability of the business, the commitment of the entrepreneur, and ability to fully repay the loan. The higher risk associated with these types of loans, where equity and collateral may play a lesser role in the lending decision, is reflected in the interest rate which ranges from prime plus 3% to prime plus 7%.

Q10. What documentation is required to apply for an OCLF loan?
To apply for a loan from the Ottawa Community Loan Fund, applicants will need to submit a completed OCLF loan application, verification and referral from an approved training partner and a complete business plan. Existing businesses will be asked to submit a business plan and supporting business documentation such as financial statements for the past 2 years, a copy of the T2124 “Statement of Business Activities” from the Personal Income Tax Return, PST and/or GST statements, bank statements, copies of contracts or invoices, etc.

Q11. What is the OCLF loan review process?
Applicants are required to submit all of the documentation listed in the loan application package (also available at the OCLF offices). During a preliminary review the completeness of the application and eligibility of the candidate will be verified. Applicants will be contacted to confirm eligibility and schedule a personal interview. During the interview process, OCLF staff will clarify information about the business and the applicant. A full review of the business plan will be carried out as well as a review of the applicant’s personal credit bureau. Next, the application will be evaluation by the OCLF Loan Review Committee against pre-established criteria to determine if a loan can be made.

Q12. Are there any fees?
Applicants for OCLF loans are required to submit a $10.00 non-refundable application fee with their loan application. If the loan is approved, there is an OCLF Administration Fee ranging from $250 -$500, depending on the size of the loan. If needed, the administration fee can be included in the amount of money being borrowed from the OCLF.

Q13. How long does the review process take?
The full review process generally takes between 3 and 4 weeks.

Q14. What does the OCLF finance?
Businesses - The OCLF will consider lending to new or growing businesses that: are located in the Ottawa region; operate no less than 10 hours per week; are not a network marketing business; do not support gambling or appeal to erotic or sexual inclinations; are legally registered as a sole proprietorship, partnership, corporation, co-operative, or not-for-profit; will use the loan proceeds to pay for expenses that will commence or expand the business in an appropriate manner, and can demonstrate viability through a completed, well researched business plan.

Internationally-trained Professionals - The OCLF will also fund tuition and course expenses for individuals enrolled in accreditation programs for internationally-trained professionals.

Q15. Where can I get help to write a business plan?
The Entrepreneurship Centre located at 110 Laurier Avenue in Ottawa, has books and seminars on how to write a business plan. For a fee, they will also review your business plan. Additional information is available at the local libraries or a number of the banks who have templates to assist in the development of business plan. A good on-line source is Industry Canada’s website located at http://strategis.ic.gc.ca. The OCLF web-site has links to several business planning sites as well.

Q16. What happens if I can not repay my loan?
Every effort will be made by the OCLF to collect all loans made to business and individuals. The success of OCLF depends on full and timely repayment by each client. In the event that a client does not repay their loan, the use of a collection agency will be employed, as well as the reporting of delinquency to the Credit Bureau.

Q17. Can I apply for another loan with the OCLF once my first loan has been repaid?
Yes, if your loan has been repaid in full as negotiated, you are encouraged to apply to the OCLF for subsequent business loans. You may also be advised to apply with a conventional lender.

Q18. How else can the OCLF assist my business?
The Ottawa Community Loan Fund actively partners with numerous business service agencies to build an information and referral network for local businesses. OCLF clients and applicants will receive assistance with information about additional resources that exist to support small business in the Ottawa region.

Q19. Where can I get an application form or more information ?
For more information, please contact the Ottawa Community Loan Fund at 613 594-3535, download the loan application package or email us at info@oclf.org. Application forms can also be picked between 9AM and 5PM from Monday to Friday at our office located at 280 Metcalfe Street, Suite 407 (Corner of Metcalfe & Gilmour).

Q20. How can I support the OCLF?
Community support has been a large part of our success and will be vital to the continued delivery of OCLF services to small business and individuals in our community.

We would welcome your involvement as an individual or corporate donor, sponsor or volunteer. If you would like to find out more about how you can become a support er of the Ottawa Community Loan Fund, please contact George Brown, Managing Director at 613-594-3535, or gbrown@oclf.org.

Patronage of OCLF clients is also encouraged – please ask us for a list of businesses that have been assisted by the OCLF so that you can consider becoming one of their clients. Visit our client success stories for inspiration.