Types of Loans

Since 1986, HCDC has distributed more than $32 million dollars in loans, influencing 3,222 jobs in Haliburton County. Qualifying new or existing businesses can access up to $150,000 through the following:

Term loan: 

Term loans are repaid over a specified period of time with blended principal and interest payments. Interest rates are fixed during the term of the loan. Generally term loans do not exceed seven years. Interest is applied monthly. Flexible repayment terms are available including seasonal payment plans. Term loans can be used to purchase new or used chattels. This can include vehicles and leasehold improvements. Term loans can also be used to finance long-term working capital.

Demand loan/Line of credit:

A deman loan or line of credit has interest only payments with varying payments of the principal. The loan is reviewed and renewed yearly, with a fixed interest rate for one year. If the line of credit is not renewed, the outstanding principal becomes due and payable.

Loan guarantee:

This is a form of security (GIC or equivalent) provided by HCDC to another lender guaranteeing the financing. The difference in the interest bearing GIC and the going interest rate charged by HCDC is applied monthly. A loan guarantee is for a one-year term and subject to review and renewal. A renewal fee may be applied.

Equity investments: 

HCDC may consider investing in an incorporated company in return for a share of the ownership of that company. Capital is expected to be recaptured within a three to five year period as well as a return of capital gains and/or dividend income.

Loan Criteria:

The investment fund is not a grant or forgivable loan program. Loans are available to businesses operating in Haliburton County when the business or the proposed business:

• Demonstrates some job creation/retention for Haliburton County residents.
• Is not involved in the commercial exploitation of sex or religion or inovloved in political or illegal activities.
• Establishes a reasonable expectation of economic viability.
• Demonstrates the ability to repay funds advanced by the corporation.
• Includes other funding partners such as:
• The shareholders of an incorporated business,
• The principals and/or partners of an unincorporated business,
• Private investors, including family members,
• Government agencies,
• Other approved funding partners.

The principals/shareholders will provide evidence of their ability or experience to operate the business. Confidentiality between the Corporation and the client is assured by HCDC.