Comparing offers, repayment and post-award obligations

Canada · United States Draft, not yet reviewed

Compare the total cost and the payment demands, not just how fast you can be approved or how much money you receive.

BDC advises weighing total cost and repayment demands, and not approval speed alone. SBA's funding guide likewise suggests comparing offers from banks and credit unions using your business plan, expenses and projections.

Ask each provider for terms in writing, then line up: the total amount repaid, fees taken upfront, payment frequency and size, security or personal guarantees, early-repayment terms, and what happens if you miss a payment. Check the instrument too, since repayable loans, factoring and cash advances work very differently.

One deal can combine instruments, so look at the whole package.

This is general information, not financial advice. For a large or complex deal, take independent professional advice before you sign.

Next: Compare funding options

Sources (read 2026-10-31): BDC financing; SBA funding guide; financing types

Canada · United States Draft, not yet reviewed

Not necessarily. Many programs reimburse eligible costs after you spend them, and an award notice is not the same as cash in hand.

The ISED toolkit warns that reimbursement timing, matching funds, limits on spending before approval and stacking of other government assistance can change what an award is worth. CanExport SMEs, for example, can be a reimbursement-based contribution with the applicant sharing costs.

So before accepting, read the agreement. Check which costs are eligible, when and how you are paid, what reports are due, and whether you must carry costs in the meantime.

Tax can also be affected. For SR&ED, government assistance must be reflected in the calculation.

This is general information, not legal or tax advice. Ask the funder to explain payment timing in writing, and take professional advice on large awards.

Next: Funding answers

Sources (read 2026-10-31): ISED application toolkit; CanExport guide; CRA SR&ED

Canada Draft, not yet reviewed

It means you pay part of the project cost yourself. The ISED toolkit says many programs require applicants to cover a share of eligible costs. For example, a program might fund 60% up to a limit and leave you to fund the other 40%.

You are also responsible for costs above the program's funding cap and for any costs deemed ineligible. Some programs accept in-kind contributions toward your share, valued at fair market value, but not all do.

Before accepting, work out your cash need for the whole project, not just the funded portion, and check how your share is evidenced. Ask the funder what counts toward it in writing.

This is general information about federal Canadian programs; each program sets its own rules.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada · United States Draft, not yet reviewed

Usually not, and you should not count on it. The ISED toolkit says contributions usually cover only eligible expenses incurred after the contribution agreement is signed.

Some programs allow retroactive reimbursement of costs from before the start date, but this is not guaranteed, and spending in that hope before signing is at your own risk. The toolkit also says no funding is received until the funding agreement is signed.

So ask the program in writing what start date applies to eligible costs, and keep records of everything either way. If the date is unclear, delay major purchases until it is confirmed.

This describes federal Canadian programs; US awards have their own rules, so check the notice and award terms.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada · United States Draft, not yet reviewed

Often no. The ISED toolkit says services used to prepare your application generally cannot be paid with the funding, and that grant funds generally cannot cover expenses incurred before the project start date, such as grant-writer fees.

So plan to pay any application help from your own money, and treat it as a cost of applying that may never be recovered. Check the program's list of eligible costs and any category caps before you assume otherwise.

Be careful with anyone who offers to be paid out of the award, or who promises success. Get the fee terms in writing first.

This describes Canadian federal programs; check each funder's rules.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

It is the funding agreement between you and the Government that sets out what each side owes for contribution funding. The ISED toolkit says your obligations are defined by it, and the work plan and budget agreed there govern what you can claim.

Read it closely before signing. Check eligible costs, payment timing, reporting, repayment terms, audit rights, intellectual property and what happens if the project changes. Ask questions in writing and keep a signed copy.

Because it is a legal agreement, consider asking a lawyer or accountant to review large awards.

This describes federal Canadian contribution agreements; other funders use different documents but the same questions apply.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

A holdback is a share of the funding the Government keeps until you finish your reporting. The ISED toolkit says contributions may be subject to a holdback, often 10%, released after final reports are submitted.

That means you may fund the last part of the project from your own cash, and your final payment depends on reports being accepted. Include it in your cash-flow plan, and note the reporting deadline.

Holdback percentages and release conditions are set in each program's agreement, so check yours.

This is general information and does not describe any particular program.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada · United States Draft, not yet reviewed

They can last for years. The ISED toolkit says reporting can continue for years after the project ends.

It separates two cases. Grant reporting is usually limited to confirming ongoing eligibility and sometimes project results. Contribution recipients must submit progress and detailed financial reports, and payments often depend on them.

Before accepting an award, find the reporting calendar, the form of reports, who signs them, and how long you must keep supporting records. Put the dates in your calendar and assign an owner.

This describes federal Canadian programs; US awards have their own terms.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

Yes, the toolkit says the Government can audit how contribution funds were used, and that your project finances may be audited. An audit checks compliance with the agreement's financial and non-financial terms.

So keep clear records: invoices, proof of payment, timesheets where relevant, and evidence the spending matched the approved budget. Keep funded costs separate from other spending.

Ask the funder in writing how long to retain records. If you cannot document a cost, expect it may be treated as ineligible.

This describes federal Canadian contributions; other funders have their own audit rights.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

By default, the ISED toolkit says the Government lets recipients own foreground IP, meaning IP created in the project, but it may require a license back.

The application guide and funding agreement state who owns it and any license-back obligations. You generally must indemnify the Government against third-party IP infringement claims. If the project uses existing IP, you need the right to use it, secured through a formal contract with the owner, and you are usually responsible for protecting the IP you create.

Read these clauses early, especially if you plan to sell or license the result. Consider IP counsel for valuable technology.

This describes federal Canadian programs; other funders differ.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

Grants never need to be repaid, while contributions may be non-repayable, repayable or a mix.

The ISED toolkit says "Grants do not need to be repaid". Contributions can be conditionally repayable, repaid only when specified conditions are met such as a revenue threshold, or unconditionally repayable on a set schedule regardless of project results. Late repayments may accrue interest.

So do not call all government funding a grant. Check the funding type in the offer, the repayment trigger, the schedule and any interest or penalties before signing.

This describes federal Canadian programs. A loan, guarantee or tax credit is a different instrument again.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

Stacking limits cap the total government funding for one project, so more programs do not always mean more money.

The ISED toolkit says some programs let you combine federal, provincial, territorial and municipal funding for different parts of one project, and a program can set a stacking limit that caps total government funding for any single activity, initiative or project.

Disclose other funding honestly in each application, because failure to do so can cause problems later. Ask each funder how it counts the others, including tax credits where relevant.

For SR&ED, government assistance must be reflected in the calculation.

This is general information; check each program.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit; CRA SR&ED

Canada Draft, not yet reviewed

It depends on the agreement, and you receive nothing before it is signed.

The ISED toolkit says grants are paid as a lump sum or in instalments on a schedule in the grant agreement. Contributions may be paid on milestones, by reimbursement of eligible costs, by a costing formula, or a combination. Advance payments may be available based on your cash-flow needs. Claims are typically paid monthly or quarterly after approved reports.

The federal fiscal year runs April 1 to March 31, which can affect timing.

Ask the funder for the payment timetable and your cash-flow gap, and write it into your plan.

This describes federal Canadian programs.

Next: Offers and obligations answers

Sources (read 2026-11-01): ISED application toolkit

Canada Draft, not yet reviewed

The lender alone decides. The government page says the funds come from the financial institution, not the government, and that the borrower and lender negotiate the actual amount.

The program sets ceilings: $1.15 million in total per borrower, up to $1 million for term loans and up to $150,000 for lines of credit. Eligible uses for term loans include real property, equipment, leasehold improvements, intangible assets and working capital; lines of credit cover working capital.

The page does not cover what the government guarantees, security or personal guarantees, so ask your lender.

Nothing here predicts approval.

Next: Canada funding resources

Sources (read 2026-11-01): CSBFP

United States Draft, not yet reviewed

SBA caps 7(a) variable rates at the base rate plus a margin that falls as the loan gets larger: up to 6.5% for loans of $50,000 or less, 6.0% for $50,001 to $250,000, 4.5% for $250,001 to $350,000, and 3.0% above $350,000.

Fixed-rate maximums are published separately by SBA. Export Working Capital Program loans have no SBA maximum rate.

These are ceilings, not what you will be offered. Lenders compete on rates and fees, so compare quotes and ask whether the rate is fixed or variable.

SBA changes the base rate and the rules over time, so confirm the current figures with SBA or your lender.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

Lenders pay an upfront SBA guaranty fee on each 7(a) loan, and may pass it on to the borrower. Lenders also pay an annual service fee on the outstanding guaranteed principal, and that fee cannot be charged to the borrower.

SBA sets the fee amounts each fiscal year, and the page does not list them. The page also does not specify packaging fees; it points to SBA's operating procedures and 13 CFR 120.221 for fees lenders and agents may charge.

Ask any lender or agent for a list of every fee, who receives it and when it is due, before you sign. If a charge is not listed in the loan documents, ask why.

See also the answer on whether a fee before a loan is normal.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

Sometimes, but only in narrow cases. SBA says a prepayment penalty applies to loans with a maturity of 15 years or longer, and only when the borrower voluntarily prepays 25% or more of the outstanding balance within three years of first disbursement.

The fee is 5% of the prepayment in year one, 3% in year two and 1% in year three.

That is the SBA rule for 7(a); other loans, and other lenders' non-SBA products, have their own terms. Ask your lender for the prepayment clause in writing, and check whether it applies to partial or full payoff.

This is general information, not financial advice.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

It depends on the loan size and type. SBA says that for standard 7(a) loans over $350,000, a loan is fully secured when the lender holds security interests in the assets being financed plus available fixed assets, up to the loan amount.

For 7(a) Small loans of $350,000 or less, no collateral is required for loans of $50,000 or less. For $50,001 to $500,000 the lender follows its own written collateral policy, but it cannot decline a loan solely for inadequate collateral. SBA Express has a similar $50,000 threshold.

Personal guarantees are not covered by that page, so ask your lender what it requires.

This does not predict your approval.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

Generally 10 years or less, unless the loan finances real estate or equipment with a useful life over 10 years. SBA says real estate loans can run up to 25 years including extensions.

Other SBA programs differ: 504 loans up to 25 years for real estate and 10 for equipment, microloans no more than six years for the borrower, and the Working Capital Pilot up to 60 months.

A longer term lowers each payment but usually costs more interest overall, and may trigger the prepayment rule on 15-year-plus loans. Match the term to the life of what you finance.

Ask your lender for a payment schedule.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

SBA microloans go up to $50,000, with an average around $13,000 according to SBA. The maximum term is seven years on the loan page, though SBA's lender terms page says no more than six years for the borrower, so confirm with the intermediary.

Rates are set by the intermediary, generally between 8% and 13%. Funds can pay for working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but not existing debts or real estate.

You apply through an SBA-approved nonprofit intermediary, which makes all credit decisions and sets all terms.

The differing term figures are a reason to ask for current terms in writing.

Next: US funding resources

Sources (read 2026-11-01): microloans; 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

No. SBA says the Paycheck Protection Program ended May 31, 2021. Existing borrowers may still be eligible for loan forgiveness.

Forgiveness can be requested through SBA's direct forgiveness portal up to five years from the date SBA issued the loan number, and lenders usually decide when to submit applications to SBA. Questions about a specific application go to your lender.

Any advert or message offering a new PPP loan should be treated as suspect. SBA also says neither the government nor lenders charge small businesses fees for this help.

Check the SBA page for current details.

Next: SBA: COVID-19 relief options

Sources (read 2026-11-01): SBA COVID relief

United States Draft, not yet reviewed

SBA offers a hardship accommodation. Eligible COVID EIDL borrowers can cut payments by 50% for six months, once every five years.

Eligibility requires the loan to be current or less than 90 days past due, the business to be actively operating, no active bankruptcy for the borrower or owners, and a temporary cash-flow problem. Interest keeps accruing during payment assistance, which can increase the balloon payment at the end.

Use the SBA Loan Portal to request servicing, and contact SBA servicing rather than paying a third party. SBA states that neither the government nor lenders charge fees.

This is general information; check SBA for current rules.

Next: SBA: COVID-19 relief options

Sources (read 2026-11-01): SBA COVID relief

United States Draft, not yet reviewed

It can be referred to the Treasury. SBA says loans that stay delinquent may be referred to Treasury's Offset Program after 120 days, or to its Cross-Servicing Program. Cross-Servicing loans are no longer handled by SBA, and Treasury can be contacted on the number SBA gives.

SBA also says it no longer accepts paper checks, effective October 1, 2025, so payments go electronically through the SBA Loan Portal or by phone.

If you are struggling, ask about the hardship accommodation before the loan becomes delinquent, and keep records of every contact.

This is general information, not legal advice.

Next: SBA: COVID-19 relief options

Sources (read 2026-11-01): SBA COVID relief

Canada Draft, not yet reviewed

It depends on the loan type. BDC says no down payment is required but that collateral is dependent on the type of loan chosen, and real estate purchases may need a down payment.

Some loans may require a personal or corporate guarantee, so assets are not always necessary. BDC runs a credit check on all loan guarantors and board members.

Ask the advisor exactly what security and guarantees your specific product needs, and what happens to them if you repay early. A guarantor can be personally liable, so consider independent advice.

The page does not list fees; ask for a full list.

This does not predict approval.

Next: Canada funding resources

Sources (read 2026-11-01): BDC financing FAQ

Canada Draft, not yet reviewed

In a non-blended loan, the principal part of each payment stays the same and interest is charged on the declining balance, so total payments shrink over time. BDC describes this for some of its loans.

By contrast, a blended payment keeps the total payment steady, with the mix of principal and interest changing. The BDC page does not describe blended payments, so confirm that with your lender.

Non-blended loans cost more at the start, so check that your cash flow can handle the early payments.

Ask for a full payment schedule before you sign. This is general information, not financial advice.

Next: Offers and obligations answers

Sources (read 2026-11-01): BDC financing FAQ

Canada · United States Draft, not yet reviewed

Expect identity, ownership and financial documents. BDC says business information such as registry details, contact details for owners, directors and shareholders, and a void cheque is needed, plus government-issued photo ID for personal details.

It may later ask for financial statements, a purchase offer, an environmental report, an asset assessment or a list of leases. It suggests preparing financial statements, a business plan and cash flow projections in advance. SBA's funding guide similarly says to use your business plan, expenses and projections when comparing offers.

The exact list depends on the lender and product. Ask for the checklist in writing and share documents only through a secure, verified channel.

Next: Funding guides

Sources (read 2026-11-01): BDC financing FAQ; SBA funding guide

Canada Draft, not yet reviewed

No lender can promise a fixed time. BDC says there is no set timeline and processing depends on the number of requests and how quickly you provide information.

It says loans under $100,000 require fewer documents and are generally faster, and that many applications get a response within a few business days. That is not a promise.

Speed is a poor way to choose between offers. BDC advises weighing total cost and repayment demands, not approval speed alone.

Prepare documents in advance and respond to questions quickly. Be wary of anyone who promises funding on a specific date.

Next: Offers and obligations answers

Sources (read 2026-11-01): BDC financing FAQ; BDC financing

Canada · United States Draft, not yet reviewed

Debt keeps your ownership but must be repaid whatever happens, while equity needs no repayment but gives up ownership and control.

BDC says term lending and quasi-equity avoid ownership dilution, equity investors take a stake in the company and can leave shareholders with less control, and debt preserves decision-making but requires repayment regardless of performance. SBA says venture capital comes in return for equity, not as a loan, with investors typically taking an ownership share and a board seat.

Some businesses combine both. Match the instrument to cash flow and growth plans, and take advice before giving up ownership.

This is information, not investment advice.

Next: Compare funding options

Sources (read 2026-11-01): financing types; SBA funding guide

Canada Draft, not yet reviewed

It depends on how long the equipment stays useful and how fast it becomes obsolete. BDC says buying means a loan secured by the equipment, usually for a percentage of its assessed value, and equipment loses value over time. Leasing means a monthly fee while the supplier keeps ownership, and at expiry you can generally return the equipment or buy it.

Leasing works best for equipment that becomes obsolete quickly. A loan that outlasts the equipment's useful life can mean paying for equipment that no longer earns revenue, so BDC suggests matching the term to the asset's lifespan.

Compare the total cost, end-of-term terms and who pays maintenance. Ask for the lease terms in writing.

Next: Business funding

Sources (read 2026-11-01): financing types

Canada Draft, not yet reviewed

It is a type of financing that ranks below secured debt if the business defaults. BDC says mezzanine financing is usually not secured by company assets and has very flexible repayment terms.

Because it ranks below secured debt, lenders see more risk, so it carries higher interest rates. It can work well alongside senior debt in business acquisitions. Quasi-equity is a hybrid of debt and equity aimed at fast-growing companies with few assets to pledge.

Read how the repayment, any equity features and default rights work, and consider professional advice before signing.

This is general information, not financial advice.

Next: Compare funding options

Sources (read 2026-11-01): financing types

United States Draft, not yet reviewed

The issuer must keep reporting. The SEC says issuers must file an annual report on Form C-AR within 120 days after fiscal year end, on EDGAR and on the issuer's website, and audit or review is not required for that report.

Issuers must also file Form C/A for material changes, and Form C-U within 5 business days of reaching 50% and 100% of the target, unless the intermediary posts frequent updates. The obligation ends in specified circumstances, with a Form C-TR.

Securities bought in a crowdfunding transaction generally cannot be resold for one year, with limited exceptions.

This is a summary, not legal advice; consult a securities lawyer.

Next: US funding resources

Sources (read 2026-11-01): SEC issuer guidance

United States Draft, not yet reviewed

The SEC page says a maximum of $5,000,000 can be raised in a 12-month period, counting prior Regulation Crowdfunding sales by the issuer and related entities.

Investor limits protect non-accredited investors. Those with income or net worth under $124,000 can invest the greater of $2,500 or 5% of the greater of income or net worth. Those with both at or above $124,000 are limited to 10% of the greater of the two. There is an aggregate cap of $124,000 per non-accredited investor in a 12-month period.

Each offering must go through one SEC- and FINRA-registered online platform.

These figures can change; this is not legal advice.

Next: US funding resources

Sources (read 2026-11-01): SEC issuer guidance

United States Draft, not yet reviewed

Usually neither. SBA says crowdfunding backers generally do not receive ownership or expect a financial return, and often get the product or perks instead.

SBA describes it as low risk for owners because you keep full control, and if the plan fails you typically do not have to repay backers. It also says every crowdfunding platform is different, so review each platform's terms.

That is different from equity crowdfunding, where investors buy securities and the SEC's rules apply.

Check platform fees, delivery duties to backers and any consumer law that applies to rewards you promise.

This is general information.

Next: Compare funding options

Sources (read 2026-11-01): SBA funding guide

United States Draft, not yet reviewed

Check how much you really receive, how much you must repay, and how repayment is taken.

The FTC describes an MCA as a sum upfront repaid, with a larger amount, through daily automatic withdrawals from the business bank account. In the case it describes, the FTC alleged that businesses received much less than promised because large fees were withheld from the advance, and that withdrawals continued after full repayment.

So ask for the amount funded after fees, the total payback, the debit schedule, collateral and personal guarantee terms, and how debits stop at payoff. Compare against other options.

These were allegations in one case. This is not legal advice.

Next: Compare funding options

Sources (read 2026-11-01): Small businesses targeted with unauthorized withdrawals (FTC consumer alert, Aug 2020)

Canada Draft, not yet reviewed

It must make sure the resources are used exclusively for charitable activities that further its own purposes, and keep records proving it.

The CRA guidance says the charity should assess risk, apply accountability tools such as a written agreement, reporting plan and tracked funds, and document everything. Inadequate records can lead to compliance measures, up to revocation of registration. A charity cannot accept a gift conditional on granting it to a specific non-qualified donee.

A written agreement is recommended for most grants, and may include dates, activity description, return of unused resources and reporting.

This guidance is not law; take legal advice for significant grants.

Next: Nonprofit funding

Sources (read 2026-11-01): CRA CG-032

Canada Draft, not yet reviewed

Grants totalling more than $5,000 in a year must be reported in the T3010, the CRA guidance says, including the grantee's name, the purpose and the total amount.

A written agreement may not be necessary for non-recurring grants of $5,000 or less in very low-risk situations, where other records like emails or meeting minutes may suffice. Ongoing grants of $5,000 or less should generally have a written agreement.

The guidance is not law, and the charity must still show its books and records let the CRA verify the grant. Confirm current filing rules on the CRA site and with an adviser.

Next: Nonprofit funding

Sources (read 2026-11-01): CRA CG-032

Canada Draft, not yet reviewed

The CRA guidance on charity grants does not use the term restricted funds, but it describes related rules. Grantees should track each grant separately from their other funds, if feasible, though a separate bank account is not required.

Agreements should state that transferred resources remain limited to the charity's charitable purposes, and unused resources must be returned when required, for example on termination. For real property grants, profits must be tracked and spent only on charitable activities.

If you receive such funds, read the agreement for return and reporting terms and keep records.

This is guidance for charities making grants; take advice for your situation.

Next: Nonprofit funding

Sources (read 2026-11-01): CRA CG-032

Canada Draft, not yet reviewed

No. Under the CRA's guidance, sponsorship happens when a business pays toward a charity's activity or event and the charity promotes the business's brand, products or services in return.

Minimal recognition given equally to all donors is not sponsorship. If the business gets only that, the charity can issue a receipt for the full donation. If the business gets sponsorship benefits, their value is generally subtracted before receipting, and if the value cannot be calculated the charity cannot issue an official donation receipt.

The CRA also says that if advantages exceed 80% of the gift's value there is generally no true intention to make a gift.

Agree the benefits in writing first.

Next: Nonprofit funding

Sources (read 2026-11-01): CRA sponsorship

Canada Draft, not yet reviewed

Possibly as an advertising expense, but that is a tax question for your adviser. The CRA says a business may claim sponsorship costs as advertising expenses if the sponsorship is reasonable and intended to generate income. This option is available even when no official receipt can be issued.

That is different from a donation receipt, which is not allowed when the business gets valued advantages that cannot be calculated. A sponsorship is also not a grant.

Keep the sponsorship agreement, invoices and evidence of what you received, and ask an accountant how it applies to you.

This is general information, not tax advice.

Next: Funding guides

Sources (read 2026-11-01): CRA sponsorship

Canada · United States Draft, not yet reviewed

Often yes. In both Canada and the US, government grants to a business are generally treated as taxable, though the exact treatment depends on the grant.

The Canada Revenue Agency says grants and subsidies are reported either as income or as a reduction of an expense. A drought payment to a farmer is added to income, while a student-hiring grant is generally deducted from the wage expense. Assistance used to buy capital property does not raise net income; it reduces the property's cost.

The IRS says a business's receipt of a government grant is generally not excluded from gross income. It also says forgiven loan amounts are generally included in gross income unless an exclusion applies.

A specific grant's authorising law or agreement can change this, and rules differ for nonprofits and charities. Ask an accountant before relying on any of this. It is general information, not tax advice.

Next: Tax answers

Related: If a grant is awarded, do I get the money up front?

Sources (read 2026-11-01): Sources of income (business income reporting); CARES Act Coronavirus Relief Fund frequently asked questions

Canada · United States Draft, not yet reviewed

A personal guarantee means you, not only the company, can be pursued for the debt if the business does not pay.

BDC says that without tangible collateral you will generally be required to sign a personal guarantee to get a working capital loan. SBA guarantee forms can be full (unlimited) or limited, and a limited guarantee may cap liability by amount, percentage, time or collateral. SBA's instructions state that all guarantors signing a single guarantee form are jointly and severally liable. Someone who pledges collateral but is not personally liable should sign the limited form.

The FTC alleged one merchant cash advance provider falsely claimed there was no personal guarantee requirement, so read the actual contract, not the pitch.

Before signing, ask what it covers, whether it is limited, and what happens to your home or savings. Talk to your own lawyer. This is general information.

Next: Offers and obligations answers

Related: If two owners sign the same guarantee, is each one responsible for the whole debt?

Sources (read 2026-11-01): 5 solutions to get a business loan without collateral; Instructions for SBA Form 148 and 148L (guarantees); Small businesses targeted with unauthorized withdrawals (FTC consumer alert, Aug 2020)

United States Draft, not yet reviewed

Yes, potentially. On an SBA guarantee form, all guarantors who sign a single form are jointly and severally liable.

In plain terms, that generally means a lender can look to any one of them for the full amount, not only that person's share. The form instructions describe this for SBA Form 148 (unlimited) and 148L (limited). Each guarantor on a limited guarantee can have only one limitation, such as a cap on the maximum amount, a percentage, a time limit or a collateral-only limit. A guarantor who pledges collateral but will not be personally liable is meant to use the limited form with the collateral option.

Other lenders use their own forms, so the wording in your contract is what counts. Ask the lender how a limit would apply, and whether a co-owner's release changes your share. Have your own lawyer read it before you sign. This is general information about SBA forms.

Next: Offers and obligations answers

Related: What does a personal guarantee mean for me?

Sources (read 2026-11-01): Instructions for SBA Form 148 and 148L (guarantees)

United States Draft, not yet reviewed

California requires covered commercial financing providers to give disclosures including the funding amount, an annual percentage rate, payment amount, term and prepayment details.

The state's Department of Financial Protection and Innovation said its regulations took effect on 9 December 2022. For products with no monthly payment, an average monthly cost must also be shown. The underlying statute requires the total dollar cost of financing. The rules cover installment loans, open-end credit, commercial factoring and merchant cash advances, among others.

This page covers California only. Other states and provinces differ, and I have not checked which providers or products are exempt. As of the date read, the DFPI page I used was a press release, so check the regulation itself.

When you get an offer anywhere, ask for the total cost in writing, the repayment amount, fees and prepayment terms. This is general information, not legal advice.

Next: Offers and obligations answers

Related: What does a personal guarantee mean for me?

Sources (read 2026-11-01): DFPI commercial financing disclosure regulations effective Dec 9, 2022

United States Draft, not yet reviewed

Keep financial records, supporting documents, statistical records and other records tied to the award for three years from the date the final expenditure report is submitted.

For awards renewed quarterly or annually, the three years run from the date each quarterly or annual financial report is submitted. The rule in 2 CFR 200.334 sets exceptions: records must be kept until resolved if litigation, a claim or an audit starts before the period ends; the awarding agency or pass-through entity can notify you in writing to extend it; and records for real property and equipment run three years after final disposition.

Program income records and indirect cost rate documents have their own start dates. Federal agencies must not add other retention requirements.

This answer uses the 2024 edition of the regulation. Your award terms and the current rule control, so check them. This is general information, not legal advice.

Next: Offers and obligations answers

Related: How long must I keep records of equipment or property bought with US federal funds?

Sources (read 2026-11-01): 2 CFR 200.334 Retention requirements for records (2024 edition)

United States Draft, not yet reviewed

Often yes. Under 2 CFR 200.308, a recipient of a US non-construction federal award must request prior approval from the agency before changing the project's scope or objective.

The rule says this applies even when no budget change needs written approval. Other prior-approval triggers include changes in the approved cost-sharing or matching, a need for additional federal funds to finish the project, moving participant support funds to other categories, and subawarding or contracting out work not described in the application.

Recipients must also report deviations from the approved budget or project scope.

This is the 2024 edition and covers US federal awards only. Canadian programs and private funders set their own change rules in the agreement. Read your award terms, then ask the funder in writing before acting. This is general information, not legal advice.

Next: Offers and obligations answers

Related: Do I need approval to change the key person or subcontract work on a US federal award?

Sources (read 2026-11-01): 2 CFR 200.308 Revision of budget and program plans (2024 edition)

United States Draft, not yet reviewed

The pages read describe the guaranty as a percentage of the loan, and do not say it releases you from the debt, so assume you still owe the loan.

SBA's terms page lists guaranty percentages: 85% for 7(a) loans up to $150,000 and 75% above that, 50% for SBA Express, and 90% for Export Express, Export Working Capital and International Trade loans. The lender pays an upfront guaranty fee and may pass it on to you.

Ask your lender who bears what if you cannot repay, what collateral or personal guarantee applies, and what the loan documents say. Do not treat the word guarantee as meaning your risk is covered.

This is general information, not legal advice.

Next: US funding resources

Sources (read 2026-11-01): 7(a) terms, conditions and eligibility (SBA)

United States Draft, not yet reviewed

Often yes. 2 CFR 200.308 lists a change in a key person named in the application or award as a trigger for prior approval from the federal agency.

So is a project director or principal investigator who disengages from the project for more than three months, or cuts time on it by 25 percent. Subawarding, transferring or contracting out work under the award also needs prior approval unless it was described in the application and funded. That does not apply to buying supplies, material, equipment or general support services.

The section applies to non-construction federal awards in the 2024 edition. Agencies cannot add other prior-approval items for specific costs beyond what the rule allows, but your award terms may add conditions.

Before acting, check the award documents and ask the awarding office in writing. This is general information, not legal advice.

Next: Offers and obligations answers

Related: Must I get approval before changing my funded project scope?

Sources (read 2026-11-01): 2 CFR 200.308 Revision of budget and program plans (2024 edition)

United States Draft, not yet reviewed

A US federal award must state key facts about the money and incorporate the general terms and conditions, either in the award itself or by reference.

Under 2 CFR 200.211, the award must include items such as the recipient and its unique entity identifier, the award number and date, the period of performance, the budget period, the federal funds obligated, any approved cost sharing, the approved budget, and the indirect cost rate. The agency must also tell you about termination provisions.

The general terms must be kept on the agency's website, and the agency must give you the full text if you ask. Award-specific terms must be included with each award.

This answer does not say when an award becomes binding. Read the agreement, sign only what you understand, and ask the agency in writing about any unclear item. 2024 edition; US federal awards only. Not legal advice.

Next: Offers and obligations answers

Related: Must I get approval before changing my funded project scope?

Sources (read 2026-11-01): 2 CFR 200.211 Information contained in a Federal award (2024 edition)

Canada Draft, not yet reviewed

In Canada, a registered charity can issue a receipt for donated goods or property, but not for donated services or time.

The Canada Revenue Agency says a non-cash receipt needs a brief description of the property and the day it was received. The eligible amount cannot exceed the deemed fair market value. If the property was appraised, the appraiser's name and address are required, and an appraisal is recommended for items worth $1,000 or more. Services do not qualify as gifts, so volunteer time or labour cannot be receipted. A receipt cannot be issued in a name other than the true donor's.

The CRA page links to separate rules on deemed fair market value, which I did not read, so special cases such as recently bought property need checking.

This answer covers Canada only; US treatment was not sourced here. A charity should confirm each case with the CRA or an adviser.

Next: Nonprofit funding

Related: Is grant money taxable income?

Sources (read 2026-11-01): Issuing complete and accurate donation receipts

United States Draft, not yet reviewed

Keep records for real property and equipment bought with federal funds for three years after final disposition.

That is the exception in 2 CFR 200.334(c), and it differs from the general rule of three years from the final expenditure report. Disposition means the property is sold, transferred or otherwise disposed of, so the clock may start long after the award ends. Litigation, a claim or an audit that starts first can extend retention until it is resolved, and the agency can also extend the period in writing. If the records are transferred to or kept by the federal agency, the three-year requirement does not apply to you.

This uses the 2024 edition and covers US federal awards only. Your award terms may add rules about using or selling the equipment, so check them before disposal. Not legal advice.

Next: Offers and obligations answers

Related: What federal award records must a US grant recipient keep, and for how long?

Sources (read 2026-11-01): 2 CFR 200.334 Retention requirements for records (2024 edition)