Business Loan (CSBFP)

Looking For a guaranteed Government loan?

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

In the last 10 years, small businesses have received over 56,000 loans totalling $10 billion.

How Much Funding Is Available?

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.

Is your business eligible?

Most Canadian small businesses and start-ups are eligible if their gross annual sales are $10 million or less.

Pre-Qualify Me!

What Can Be Financed?

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

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

Financing costs

Interest rates are determined by your financial institution and may be variable or fixed.

Variable: The maximum chargeable is the lender’s prime lending rate plus 3%.
Fixed: The maximum chargeable is the lender’s single family residential mortgage rate for the term of the loan 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.