How to Apply for Government Loan Government loans are a broad concept. First of all, when asking yourself how to apply for a government loan, you should know what type of loan you want to borrow. There are small business loans, micro business loans, business physical disaster loans, community-based loans, loans for specific minority and/ or disenfranchised groups, and many more. The purpose of the financing will determine the right loan for you. The most popular and basic loan type is the small business loan. In order to qualify, you must meet business size standards, lack the internal resources for financing, be able to prove you can repay the loan, and represent a for-profit establishment. In Canada, the loan can cover up to ninety percent of the costs if the borrowed amount is to be used for the improvement or purchase of property or land, the improvement of leased property or the purchase of leasehold improvements, and the purchase of new or the improvement of old equipment. The annual gross revenues of the business should not exceed $5 million. Applications for small business loans can be filled in directly at participating financial institutions, such as credit unions and banks. Among the participating institutions are the National Bank of Canada, TD Canada Trust, ATB Financial, Bank of Nova Scotia, Canadian Western Bank, and others. All institutions are fully accountable for loan approvals. Micro-loans are directed toward newly established or developing small businesses. Each lender has his own criteria, but applicants should be aware that these loans usually require some kind of collateral and a guarantee from the owner of the business. The intermediary lender plays a pivotal role here. The government makes financing available to these lenders, who in turn loan the money to eligible applicants. Any business or non-profit organization excluding the government ones, located in a disaster-stricken area and having sustained damage, has the right to apply for a physical disaster loan from the government. These loans can amount to as much as 2 million dollars with a maximum term of 30 years. The term is based on the borrower’s ability to repay the loan. In Canada, the recipients of financial assistance are differentiated by industry: accommodation and food services, retail trade and services, professional, scientific, and technical services, agricultural, forestry, fishing, and hunting, etc. While applying for government loans, the borrower should also factor in the purpose: equipment, job creation, acquisition, marketing, research and development/ patients, consulting/ financial services, and others. The government extends two types of funding: low-interest or no interest loans and government guaranteed loans. With the first option, there are 82 provincial programs and 83 government programs, with amounts ranging from $1500 to $1.5 million. Government guaranteed loans come under 6 provincial and 6 government programs, and the loan amounts are in the range of $5000 and $250,000.