Canada Small Business Financing Program (CSBFP) Awareness and Satisfaction Study

Appendices

Canada Small Business Financing Program (CSBFP)
Awareness and Satisfaction Survey

Introduction

Hello, my name is . I'm calling on behalf of Phoenix, a public opinion research company. We've been commissioned by Industry Canada, a department of the Government of Canada, to conduct a survey among business owners and managers. The purpose is to explore financing issues facing small and medium-sized businesses in Canada. The findings will help Industry Canada design programs that address the financing needs of small and medium-sized businesses like yours.

Your participation in this survey is voluntary, but would be extremely helpful. All responses will be kept entirely confidential. No individuals or businesses will be identified in any way to Industry Canada. The survey takes only 15 minutes to complete, and is registered with the national survey registration system.

IF RESPONDENT SAYS THE FIRM DOES NOT USE FINANCING, SAY: We are interested in the views of businesses whether or not they have recently tried to obtain financing.

Would you be willing to take part in this survey? We can do it now or at a time more convenient for you.

 Yes, now. (CONTINUE)
     – ASK SCREENER 'A' IF NON-CSBFP SAMPLE
     – SKIP TO Q1 IF CSBFP SAMPLE
 Yes, call later. (SPECIFY DATE/TIME)
 Refused. (THANK & DISCONTINUE)

ASK NON-CSBFP SAMPLE ONLY:

A. Before we start, we are conducting this survey with businesses with annual revenues of $5 million or less. In 2006, did your business have annual revenues of $5 million or less, before taxes and deductions?

Yes
No (THANK & DISCONTINUE)

INTERVIEWER NOTES:

PARTICIPANTS MUST BE THE OWNER, CEO, PRESIDENT OR SENIOR MANAGER/EXECUTIVE IN THE FINANCIAL AREA. ASK FOR APPROPRIATE REFERRAL IF RESPONDENT DOES NOT FIT CRITERIA OR DISCONTINUE INTERVIEW.

IF RESPONDENT SAYS THERE IS SOMEONE MORE APPROPRIATE TO RESPOND TO THE SURVEY ON BEHALF OF HIS/HER COMPANY AT ANY POINT DURING THE INTERVIEW, ASK TO BE REFERRED TO THIS NEW PERSON (AND OBTAIN PHONE NUMBER). RE-START SURVEY.

IF RESPONDENT QUESTIONS THE VALIDITY OF THE RESEARCH, INVITE HIM/HER TO:

• CALL THE NATIONAL SURVEY REGISTRATION SYSTEM, OR
• LAURA MORIN OF INDUSTRY CANADA 1-613-954-5486 OR HAVE CAROLINE CALL THE RESPONDENT.

IF RESPONDENT ASKS ABOUT NATIONAL SURVEY REGISTRATION SYSTEM, SAY:

The registration system has been created by the survey research industry to allow the public to verify that a survey is legitimate, get information about the survey industry or register a complaint. The registration system's toll-free phone number is 1-800-554-9996.

PARTICIPANTS' COMMENTS WILL BE PROTECTED IN ACCORDANCE WITH THE PROVISIONS OF THE PRIVACY ACT. INDICATE THIS IF RELEVANT. ALSO SAY IF RELEVANT: "YOUR REPONSES TO THIS SURVEY WILL HAVE NO IMPACT ON YOUR DEALINGS WITH INDUSTRY CANADA OR THE FEDERAL GOVERNMENT"

THE TERM 'BUSINESS' IS USED INSTEAD OF 'COMPANY' IN MOST OF THE SURVEY SINCE THIS TERM APPLIES BETTER FOR VERY SMALL BUSINESSES. HOWEVER, THE INTENT IS THE SAME – BY 'BUSINESS' WE MEAN 'COMPANY'.

HEADINGS IN BLUE SHOULD NOT BE READ TO RESPONDENTS.

SCALE INSTRUCTIONS: RESPONSE CATEGORIES/INSTRUCTIONS FOR SOME OF THE SCALE QUESTIONS ARE REPETITIVE. ADJUST THE FREQUENCY OF REPEATING THE INSTRUCTIONS TO ENSURE CLARITY BUT AVOID TEDIUM.

ALL QUESTIONS IN THE SURVEY WILL ALLOW FOR 'DON'T KNOW/NO RESPONSE' OPTION.

IF RESPONDENT WANTS TO KNOW MORE ABOUT THE PROGRAM, OFFER LAURA MORIN'S PHONE NUMBER (1-613-954-5486) AT THE END OF THE INTERVIEW AND INVITE HIM/HER TO CALL LAURA.

Section 1: Corporate Characteristics

I'd like to start with a few questions about your business.

2. How many employees work for your business, including yourself? By this, we mean both full-time and part-time staff. Please include part-time staff as the number of full-time equivalents. (READ LIST IF HELPFUL) (NOTE: DOES NOT INCLUDE CONTRACT STAFF OR OUTSOURCED WORK) (INCLUDES ALL LOCATIONS IN CANADA)

 One
 2-4
 5-20
 21-50
 51-100
 101-150
 151-200
 More than 200

3. Approximately how many years has your company or business been in operation? (READ LIST) (WATCH SAMPLE QUOTAS)

 Less than one year    CODE AS 'START-UP BUSINESS'
 1-3 years                  CODE AS 'START-UP BUSINESS'
 4-5 years
 6-10 years
 11-20 years
 21-50 years
 Over 50 years

4. For 2006, what were your business' total revenues? Please include business revenue from all sources, before taxes and deductions. Were your revenues...? (READ LIST; WANT ESTIMATE, NOT EXACT AMOUNT. REMIND RESPONDENT OF CONFIDENTIALITY OF RESPONSE IF NECESSARY)

 Under $100 000
 $100 000 - $300 000
 $300 001 - $500 000
 $500 001 - $1 million
 $1 000 001 - $5 million

5. In which industry or sector does your business operate? If you are active in more than one sector, please identify the main sector. (DO NOT READ LIST; ACCEPT ONE RESPONSE)

 Accommodation Services
 Administrative and Support, Waste Management, Remediation Services
 Agriculture/Fishing/Hunting/Forestry
 Art, Entertainment, Recreation
 Construction
 Educational Services
 Finance & Insurance
 Food Services & Drinking Places
 Health Care & Social Assistance
 Information and Cultural Industries
 Manufacturing
 Mining/Oil/Gas
 Other Services
 Professional, Scientific and Technical Services
 Real Estate and Rental/Leasing
 Retail Trade
 Transportation and Warehousing
 Utilities
 Wholesale Trade
 Other (specify)

Section 2: Financial Dealings

The following questions ask about your business' financial dealings, such as what banks you use, what types of financing options, whether you have tried to obtain a loan, and other relevant issues. We are only looking for information on a general level, and will not ask for any detailed information about your business' financial affairs. (IF HELPFUL, REMIND RESPONDENT ABOUT CONFIDENTIALITY OF RESPONSES)

6. Does your business use more than one financial institution for your banking and other financial arrangements?

 Yes
 No

7. Which financial institution does your business use most often for your banking? If more than one financial institution, ask: What other financial institutions does your business use? (DO NOT READ LIST; RECORD FIRST MENTION, ACCEPT MULTIPLE RESPONSES) (IF HELPFUL, REMIND RESPONDENT ABOUT CONFIDENTIALITY OF RESPONSES; DO NOT PUSH. ACCEPT DON'T KNOW/REFUSE IF RESPONDENT DOES NOT WANT TO PROVIDE THIS INFORMATION)

 Royal Bank of Canada/RBC
 Toronto Dominion-Canada Trust/TD-Canada Trust
 Bank of Nova Scotia/BNS/Scotiabank
 Bank of Montreal
 Canadian Imperial Bank of Commerce/CIBC
 National Bank
 Caisses populaires
 Credit unions
 Other (specify)
 Don't know/refuse

8. During the past five years*, what financing options have been or are being used by your business? How about... [DO NOT READ LIST. ACCEPT ALL RESPONSES] (*CHANGE TO LESS THAN 5 YEARS IF FIRM IS YOUNGER THAN THIS)

 Term loans
 Credit cards for larger purchases, such as equipment
 Capital leasing for equipment [DEFINE IF NEEDED – SEE BELOW]
 Operational leases [DEFINE IF NEEDED – SEE BELOW]
 Lines of credit
 Venture capital
 Government grants (includes all levels of government)
 Credit from suppliers
 Equity financing
 Other (specify)
 None, business has not attempted to obtain external financing*

*GO TO SECTION 3.

INTERVIEWER NOTE:

Capital leasing for equipment is the financing of equipment and vehicles by way of a lease. The equipment and vehicles secure the borrower's obligation to make payments over the term of the agreement. The lease provides for the transfer of ownership to the lessee at the end of the lease term.

Operational leases refer to a lease in which the lessor transfers only the right to use the property to the lessee. Since the lessee does not assume the risk of ownership, the lease expense is treated as an operating expense.

9. In the past 12 months, did your business apply for a term loan from a financial institution? Please include all loan applications, whether or not you received the loan.

 Yes
 No                 [GO TO SECTION 3]
 Don't know     [GO TO SECTION 3]

INTERVIEWER NOTE:

'TERM LOAN' DOES NOT INCLUDE LINES OF CREDIT OR WORKING CAPITAL, BUT DOES INCLUDE LOANS USED TO PURCHASE THINGS LIKE LAND, BUILDINGS, EQUIPMENT OR FURNITURE. THIS INCLUDES BUSINESSES THAT RECEIVED OR WERE TURNED DOWN FOR A LOAN.

'TERM LOAN' DOES INCLUDE MORTGAGES RELATED TO A RESPONDENT'S BUSINESS.

10. How often did your business apply for a loan during the past 12 months? (READ LIST IF HELPFUL)

 Once
 Twice
 3 times
 4 times
 Over 4 times

11. Did your business succeed in obtaining the loan(s), either in full or in part, or were you turned down? Did you... [READ FULL LIST; ACCEPT ALL THAT APPLY]

 Receive the loan(s) for the full amount requested
 Receive the loan(s), but for less than the amount requested, or
 Were you turned down for the loan(s)?  [GO TO Q15]

 Volunteered: Received some loans, but turned down for others
 Volunteered: Not sure/Can't recall        [GO TO SECTION 3]

12. To what extent did the loan(s) meet your financing needs? In percentage terms, would you say it met... (READ LIST; ACCEPT ONE RESPONSE)

 Less than half of your needs
 50-75 percent
 76-99 percent
 100 percent of your needs

13. Was your loan(s) covered by a program offered by the federal government that provides a guarantee on loans to small business?

 Yes
 No                              [SKIP NEXT QUESTION]
 Not sure /Can't recall    [SKIP NEXT QUESTION]

*GO TO SECTION 3 UNLESS RESPONDENT VOLUNTEERED AT Q11 THAT THEY RECEIVED SOME LOANS, BUT NOT OTHERS. IF THE LATTER, GO TO Q15.

IF YES, ASK:

14. Do you remember the name of the program? If so, what is it? (DO NOT READ LIST)

 No/ Can't recall
 Small Business Loans Act (SBLA)
 Canada Small Business Financing Program (CSBFP)
 Business Improvement Loan (BIL)
 Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA)
 Other (specify)

INTERVIEWER NOTE:

NOVA SCOTIA HAS A PROGRAM CALLED 'THE SMALL BUSINESS FINANCING PROGRAM'. THIS IS NOT THE SAME AS THE CANADA SMALL BUSINESS FINANCING PROGRAM (CSBFP). WHEN CONDUCTING INTERVIEWS IN NOVA SCOTIA (OR EVEN ELSEWHERE IN ATLANTIC CANADA), PLEASE BE AWARE OF THIS AND DO NOT CODE 'THE SMALL BUSINESS FINANCING PROGRAM' AS THE CANADA SMALL BUSINESS FINANCING PROGRAM. PROBE AS NECESSARY TO CONFIRM WHETHER THE RESPONDENT IS INCORRECTLY IDENTIFYING A PROVINCIAL PROGRAM. IF SO, BACK UP ONE SCREEN AND RE-INPUT ANSWER SAYING 'NO' TO AWARENESS OF FEDERAL GOVERNMENT LOAN PROGRAM.

ASK IF BUSINESS TURNED DOWN FOR LOAN:

15. Did the financial institution that turned down your application for a loan bring to your attention any programs offered by the federal government that provide a guarantee on loans to small business?

 Yes
 No                             [GO TO SECTION 3]
 Not sure/Can't recall    [GO TO SECTION 3]

IF YES, ASK:

16. Do you remember the name of the program? If so, what is it? (DO NOT READ LIST)

 No/ Can't recall
 Small Business Loans Act (SBLA)
 Canada Small Business Financing Program (CSBFP)
 Business Improvement Loan (BIL)
 Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA)
 Other (specify)

INTERVIEWER NOTE: SEE NOVA SCOTIA FOR Q14.

Section 3: Awareness & Use of the CSBFP

SKIP NEXT QUESTION IF RESPONDENT AWARE OF FEDERAL PROGRAM AT Q14 & 16.

17. Are you aware of any programs of the federal government that guarantee the loans of small businesses and share the risk with the financial institution?

 Yes
 No        [SKIP NEXT QUESTION]

IF YES, ASK:

18. Do you remember the name of any such programs? If so, what is it? (DO NOT READ LIST)

 No/Can't recall
 Small Business Loans Act (SBLA)
 Canada Small Business Financing Program (CSBFP)*
 Business Improvement Loan (BIL)
 Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA)
 Other (specify)

INTERVIEWER NOTE: SEE NOVA SCOTIA FOR Q14.

ASK IF 'NO' AT Q17 OR RESPONDENT ANSWERED 'YES' AT Q13, 15, OR 17 BUT DID NOT IDENTIFY 'CSBFP' AT FOLLOW-UP QUESTION:

19. Have you ever heard about the Canada Small Business Financing Program, also known as CSBFP (C-S-B-F-P)?

 Yes                            [CONTINUE]
 No                              [SKIP TO Q23]
 Not sure/Can't recall    [SKIP TO Q23]

IF YES, ASK:

20. What do you know about the Canada Small Business Financing Program? (DO NOT READ LIST; RECORD FIRST MENTION; ACCEPT TWO RESPONSES)

 Government program to help small business get financing
 Losses shared by government
 Maximum financing amount
 There are program registration fees
 Loans are restricted to financing for certain kinds of assets
 Too expensive
 Bank discourages use
 Nothing
 Other (specify)

21. How did you first learn about the Canada Small Business Financing Program? (DO NOT READ LIST; ACCEPT ONE RESPONSE)

 Friend/colleague
 Bank officer
 Business service provider (e.g. accountant, financial advisor)
 Brochure/pamphlet
 Bank/other private sector website
 Federal government website
 CSBFP website
 Previously obtained CSBFP Loan
 Canada Business Network/CBN*
 Other (specify)
 Not sure/Can't recall

INTERVIEWER NOTE: CANADA BUSINESS NETWORK IS ALSO KNOWN BY FOLLOWING NAMES:

Canada Ontario Business service centre
Manitoba Business service centre
Saskatchewan Business service centre
Alberta – The Business Link or The Business Link Business service centre
British Columbia service centre or Small Business BC
Newfoundland and Labrador Business service centre
Nova Scotia Business service centre
New Brunswick Business service centre
Prince Edward Island Business service centre
Québec service centre or Info entrepreneurs / Ressources Entreprises (ville de Québec)
Yukon Business service centre
Nunavut Business service centre
Northwest Territories Business service centre

22. When seeking financing, did you ask about the Canada Small Business Financing Program or did the lender identify the program to you for your consideration? DO NOT READ LIST; ACCEPT ONE RESPONSE

 Asked about the CSBFP
 Lender identified the CSBFP
 Neither
 Not sure/Can't recall

ASK EVERYONE EXCEPT THOSE WHO HAVE NOT OBTAINED FINANCING:

23. Has your business ever obtained a loan covered by a government program, either federal or provincial, that guarantees the loans of small businesses and shares the risk with the financial institution? IF YES, ASK: Was the program offered by the federal or provincial government? INTERVIEWER NOTE: THIS INCLUDES ANY TIME IN THE HISTORY OF THE BUSINESS.

 No
 Yes, federal
 Yes, provincial
 Yes, but unsure about program sponsor
 Yes, both
 Not sure/Can't recall

24. Has your business ever decided NOT to use a government-guaranteed loan program? This could be under a program operated by either the federal or provincial level of government. IF YES, ASK: Do you recall which level of government?

 No
 Yes, federal
 Yes, provincial
 Yes, but unsure about program sponsor
 Yes, both
 Not sure/Can't recall

IF YES, ASK:

25. Why is that? (DO NOT READ LIST; ACCEPT ONE RESPONSE)

 Too expensive
 Too much administration, paper burden
 From the advice of a banker or lender
 Lender offered "umbrella credit"*
 Not necessary/financial
 Other (specify)
 Not sure/can't recall

INTERVIEWER NOTE: THIS MEANS THAT BUSINESSES CAN ACCESS SEVERAL DIFFERENT FINANCING VEHICLES AT THE SAME TIME.

Section 4: Satisfaction with Financing

ASK EVERYONE:

How important are each of the following factors to your business when it comes to obtaining financing or considering financing options? Please rate each of the following using a 5-point scale, where '1' means not important at all, and '5' means very important. [READ/ROTATE LIST] (RECORD 'DOES NOT APPLY' AND 'DON'T KNOW' SEPARATELY)

26. The interest rate.
27. The service fees.
28. The time required to process applications.
29. Access to a variety of financing options.
30. The possibility of negotiating the terms of financing, such as service fees and repayment conditions.
31. The amount of financing granted compared to the amount requested.
32. The securities and guarantees required by financial institutions, whether personal or corporate.
33. The quality of service you receive from your lender(s).

IF RESPONDENT HAS NEVER OBTAINED FINANCING, SKIP QUESTIONS 34-42.

Thinking about the past five years* and any times that your business may have applied for or obtained financing, please tell me the extent to which you were satisfied with each of these same factors in terms of the financing options available. To do this, please use a 5-point scale, where '1' means very dissatisfied, and '5' means very satisfied. If you have applied for or received financing on multiple occasions, please think about your experience overall during the past five years. As well, if something does not apply to your situation, please just say so. [READ/ROTATE LIST] (RECORD 'DOES NOT APPLY' AND 'DON'T KNOW' SEPARATELY)

34. The interest rate.
35. The service fees.
36. The time required to process applications.
37. Access to a variety of financing options.
38. The possibility of negotiating the terms of financing, such as service fees and repayment conditions.
39. The amount of financing granted compared to the amount requested.
40. The securities and guarantees required by financial institutions, whether personal or corporate.
41. The quality of service you receive from your lender(s).
*CHANGE TO LESS THAN 5 YEARS IF FIRM IS YOUNGER THAN THIS.

42. Overall, how satisfied were you with the financing options available? Please use a 5-point scale, where '1' means very dissatisfied and '5' means very satisfied.

ASK THOSE WHO ACKNOWLEDGED RECEIVING CSBFP LOAN:

Thinking specifically about the CSBFP loan(s) your business received in the past 12 months, I'd like you to tell me how satisfied you were with each of the following aspects of the loan. Please use a 5-point scale, where '1' means very dissatisfied, and '5' means 'very satisfied'. If something does not apply to your situation, please just say so. [READ/ROTATE LIST; QS 46/47 MUST BE ROTATED TOGETHER, WITH Q46 ALWAYS PRECEDING Q47] (RECORD 'DOES NOT APPLY' AND 'DON'T KNOW' SEPARATELY)

43. The availability of information on the CSBF Program.
44. Your administrative reporting requirements related to the 'life' of the loan.
45. The time needed to obtain approval.
46. Other aspects of the application process.
47. The program registration fees.
48. The annual administration fee.
49. The securities and guarantees that are required.
50. The amount of financing granted compared to the amount requested.

ASK EVERYONE WHO RECEIVED LOAN IN PAST 12 MONTHS:

51. You mentioned that you received a term loan during the past 12 months. How likely is it that your business will use the same lender for other sources of financing in the future? Would you say it is...?

 Very likely
 Moderately likely
 Not very likely
 Not at all likely

IF 'NOT VERY' OR 'NOT AT ALL LIKLEY', ASK:

52. Why is that? (DO NOT READ LIST; ACCEPT MULTIPLE RESPONSES)

 Services offered by financial provider no longer meet needs
 Trying to diversify financing sources
 Documentation requested is too complex
 Service fees are too high
 Branch is closed
 Other (specify)

ASK THOSE WHO WERE TURNED DOWN FOR A LOAN:

53. Earlier you mentioned that your business was refused financing for a loan(s) in the past 12 months. How satisfied were you with the reason(s) provided by the financial institution to explain why the loan was refused? Please use a 5-point scale, where '1' means very dissatisfied and '5' means very satisfied.

Section 5: Satisfaction with CSBF Program Parameters

ASK EVERYONE:

I'd now like to ask you some questions about the Canada Small Business Financing Program. This is a federal government program, where any losses on loans made to businesses under the program are shared by the government with financial institutions. For each of the following features of the program, please tell whether you think the amount is too high, about right, or too low. How about...? (READ/ROTATE LIST)

54. The maximum loan size is $250 000.
55. There is a registration fee of 2 percent of the total amount of the loan.
56. The maximum amount of financing available is 90 percent of the eligible cost of the project or equipment.
57. The interest rate is capped at prime plus 3 percent.

I'm now going to identify a few more features of the program. As both a business representative and a taxpayer, please tell me how reasonable you think each of the following is, whether or not you have used or might need to use the program in future. How about...? Is this very reasonable, somewhat reasonable, not very reasonable or not at all reasonable? (READ/ROTATE LIST; ACCEPT DON”T KNOW/NO RESPONSE)

58. Only term loans are available under the program.
59. CSBF loans are restricted to financing for equipment, real property or immovables, leasehold improvements, and program registration fees.
60. If a borrower defaults on a loan, the federal government is responsible for 85 percent of eligible losses under the program, and the lender is responsible for 15 percent of the loss.

ASK THOSE AWARE THEY RECEIVED A CSBFP LOAN:

As a business that received a CSBFP loan,

61. Overall, how satisfied are you with the program's rules and procedures in terms of providing financing for small businesses? Please use a 5-point scale, where '1' means very dissatisfied and '5' means very satisfied.

ASK EVERYONE:

62. If you were having difficulty obtaining financing for your business, how useful do you think the CSBF Program would be to you? Please use a 5-point scale, where '1' means not useful at all and '5' means very useful.

That completes the survey. Thank you for your participation. It is sincerely appreciated.

Record by observation or from database:

Gender
Province
Urban vs. Rural
Language