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