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 53,000 CSBFP loans totalling $10 billion dollars.
ELIGIBILITY
Small businesses or start-ups operating in Canada with gross annual revenues of $10 million or less.
AVAILABLE FINANCING
Up to a maximum of $1,000,000 for any one borrower, of which no more than $350,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used�equipment.
The maximum loan amount for any one borrower is $1.15 million.
What Can be financed\Term 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, i.e., renovations to a leased property by a tenant
- intangible assets and working capital costs
For example, you can use a�term loan�to finance:
- commercial vehicles
- hotel or restaurant equipment
- computer or telecommunications equipment and software
- production equipment
- costs to buy a franchise
Lines of credit�can be used to pay for working capital costs, that is, day-to-day operating expenses of the business.
HOW TO APPLY FOR A LOAN
- Financial institutions deliver the program and are solely responsible for approving the loan. Discuss your business needs with a financial officer at any bank, caisse populaire or credit union in Canada.
- The financial officer will review your business proposal and make a decision on your loan application.
- Once the decision is made to provide financing, the financial institution will disburse the funds and register the loan with Innovation, Science and Economic Development Canada (ISED).
For More Information: Canada Small Business Financing Program
