The Canada Small Business Financing Program (CSBFP) helps small businesses access loans by sharing the risk with lenders. Over the last decade, more than 53,000 loans have been issued under this program, totaling $10 billion.
Eligibility:
- Small businesses or startups operating in Canada with gross annual revenues of $10 million or less.
Available Financing:
- Up to $1,000,000 for any one borrower.
- Of this, no more than $350,000 can be used for leasehold improvements or purchasing/improving equipment.
- The maximum loan amount for a single borrower is $1.15 million.
What Can Be Financed:
- Term loans can cover:
- Purchasing or improving land/buildings for commercial purposes
- Purchasing new or used equipment
- Leasehold improvements
- Intangible assets and working capital costs
- Examples include commercial vehicles, restaurant equipment, software, and franchise purchase costs.
- Lines of credit can be used for day-to-day business expenses (working capital).
How to Apply:
- Loans are approved by financial institutions, including banks, credit unions, and caisses populaires.
- Discuss your business proposal with a financial officer who will assess your application.
- If approved, the institution will register the loan with Innovation, Science, and Economic Development Canada (ISED).
