The Rural Voice, 1981-11, Page 3BIG SAVINGS
FOR AGRICULTURE
DEADLINE: DECEMBER 31st, 1981
The Bank of Nova Scotia is offering term loans through Small Business Development Bonds
(SBDBs), enabling some corporations, on certain conditions, to borrow from Scotiabank at
substantially less than the rate they usually pay.
Who is eligible?
Canadian -controlled private corporations that qualify
for the small business tax rate under the terms
of the federal Income Tax Act. For businesses that
are considering incorporation, certain qualifying
purchases made both before and after the date of
incorporation may be eligible.
For what purpose can
SBDB funds be used?
—To acquire new depreciable assets, or to purchase
land, used in the conduct of business. Excluded
are property acquired primarily for lease to
others, automobiles, and some other transporta-
tion equipment.
For qualifying renovations and leasehold improve-
ments of a capital nature made to buildings used
by the operating business.
For qualifying research expenditures.
What amount
:may be borrowed?
Not less than $10,000 and not more than $500,000.
Qualifying businesses can borrow through the SBDB
program only once.
What is the term
to maturity?
Not less than one year and not more than five
years, with repayment amortized up to 25 years.
What is the SBDB
interest rate?
It is variable, but for most businesses it is
substantially less than the rate they usually pay.
What is the SBDB
time limit?
The federal government requires that expenditures
using SBDB funds be made by December 31, 1981.
The SBDB program is'retroactive, applying to
qualifying expenditures madeafter December 11. 1979.
Expenditures made after that date which meet SBDB
criteria can be financed at Scotiabank at the low
SBDB rate.
Do I have to be a
Scotiabank customer?
Scotiabank welcomes any business meeting SBDB
criteria to apply for SBDB financing, or for conversion
of qualifying debt incurred at any financial
institution after December 11, 1979. If you now deal
with another institution, look on Scouabank as
an additional money source.
That's the good news.
What's the bad news?
The bad news is really not too bad.
Interest payments on Small Business Development
Bonds are not tax deductible. Even so, the cost
of funds to small business through SBDBs can still
be substantially less than prevailing bank rates.
What to do now?
Space permits only a summary of the terms of
the Small Business Development Bonds program.
For more information, speak to your accountant
and/or any Scotiabank manager. If you think you
qualify, act now.
Scotiabank
THE BANI( OF NOVA SCOTIA
Registered Trade Marks of The Bank of Nova Scotia