Canada Small Business Financing Loan Program
What are Canada Small Business Financing Loans
Canada Small Business Financing Loans are provided by private lenders (including most commercial banks) and are guaranteed up to 85% by the federal government, similar to Small Business Administration (SBA) loans in the United States.
The partnering commercial lenders disburse the funds and are solely responsible for approving your application. If your application is approved, the financial institution will deposit your funding and register the loan with Innovation, Science, and Economic Development Canada.
Funding amounts, terms, and uses
Up to $1M in funding is available, but funds can only be used for specific purposes, including:
- Purchasing or improving land or buildings used for commercial purposes, typically with 15 year terms
- Purchasing or improving new or used equipment, typically with 10 year terms
- Purchasing new or existing leasehold improvements, such as renovations to a leased property by a tenant, typically with 7 year terms
Canada Small Business Financing Loans are available to most established small businesses and start ups with gross annual revenues of $10M or less, including corporations, sole proprietors, partnerships, and cooperatives.
In addition to a strong financial and credit history, your lender will also require a detailed loan proposal that outlines how much money you are seeking, what it will be used for, and how you intend to pay it back.
Farming businesses are not eligible for CSBFL funding.
Collateral or personal guarantee may be required, potentially up to 25% of the loan amount.
Rates and fees
Rates and fees for CSBFL loans are determined by the financial institution you’re working with.
Multiple repayment options are available, including fixed and floating interest rates. Interest rates may be fixed or floating depending on the loan amount, as well as your creditworthiness and risk assessment: