A federal guarantee of up to $1.15 million that makes banks willing to lend to businesses they would otherwise turn down. You borrow from your own bank or credit union; the government covers up to 85% of the lender's loss if the loan defaults.
CSBFP has no minimum credit score, no minimum time in business and no profitability requirement in its rules. About 74% of loans go to businesses less than a year old. What the program does not do is approve anyone: your bank underwrites the loan on its own criteria and then registers it under the program. A decline at one bank does not mean a decline under CSBFP, and applying at a second lender is normal.
| Amount | Up to $1,150,000: a maximum of $1,000,000 in term loans plus up to $150,000 as a line of credit. |
| Sub-limits | Within the term loan, up to $500,000 for equipment and leasehold improvements, and up to $150,000 combined for intangible assets and working capital. |
| Cost | Interest capped at the lender's prime rate plus 3% on variable loans, or the residential mortgage rate plus 3% on fixed. A 2% registration fee applies and can be financed, plus a 1.25% annual administration fee. |
| Who qualifies | For-profit businesses operating in Canada with gross annual revenue under $10 million. Not-for-profits and charities are not eligible. |
| Excluded | Farming. The Canadian Agricultural Loans Act Program is the equivalent for farm businesses. |
| Security | Personal guarantees are capped at 25% of the original loan amount. |
| Retroactive | Purchases made in the 365 days before approval can be financed under the program. |
| Timeline | Four to eight weeks, depending on your bank. |
| Apply through | Your bank or credit union. |
Up to $1,000,000 in term loans plus up to $150,000 as a line of credit. Within the term loan, a maximum of $500,000 for equipment and leasehold improvements, and a maximum of $150,000 combined for intangible assets and working capital.
For-profit business carrying on business in Canada. Not-for-profits and charitable organizations are not eligible. Farming is covered by a separate Agriculture and Agri-Food Canada program.
| Program | Type | Maximum | Apply through | Timeline |
|---|---|---|---|---|
| CSBFP | Loan guarantee, repayable | $1,150,000 | Your bank or credit union | 4 to 8 weeks |
| BDC Financing | Loan, repayable | $350,000 | BDC directly | 2 to 6 weeks |
| Canadian Agricultural Loans Act Program | Loan guarantee, repayable | Loan guarantee | Your bank or credit union |
Program terms and sub-limits: ised-isde.canada.ca · Criminal interest rate context: Canada Gazette
Facts on this page last checked 7 August 2026.
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