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Online Banking

Canada Small Business Finance Program

Helping Small Businesses Get Loans

The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.

Over the past 10 years, small businesses have received over $9.4 billion in asset-based financing representing over 76,000 loans made.

Video Overview Expand/Collapse

Who is eligible? Expand/Collapse

Most start-ups and existing for-profit small businesses in Canada with gross revenues of $10 million or less are eligible to apply for loans under this program. Such businesses can be corporations, sole proprietors, partnerships or cooperatives.

Farming businesses are not eligible under this program.

How much financing is available? Expand/Collapse

The maximum loan amount a borrower can access under this program is $1 million, of which no more than $350,000 can be used to finance the purchase or improvement of equipment and the purchase of leasehold improvements.

What can be financed? Expand/Collapse

Loans can be used to finance the following costs:

  • purchase or improvement of land or buildings used for commercial purposes
  • purchase or improvement of new or used equipment
  • purchase of new or existing leasehold improvements, that is, renovations to a leased property by a tenant

For example, you can use a loan to finance:

  • commercial vehicles
  • hotel or restaurant equipment
  • computer or telecommunications equipment and software
  • production equipment
  • eligible costs to buy a franchise

You cannot use a loan to finance items such as:

  • goodwill
  • working capital
  • inventory
  • franchise fees
  • research and development

What are the costs? Expand/Collapse

CSBFP loans enjoy preferred rates - choose between a:

  • Variable rate: prime plus 3%.
  • Fixed rate: WCU Residential Mortgage Rate (of a similar term) plus 3%

A registration fee of 2% of the total amount loaned under the program must also be paid by the borrower to the lender. It can be financed as part of the loan.

The registration fee and a portion of the interest are submitted to Innovation, Science and Economic Development Canada by the lender to help offset the costs of the program for the government.