Canada Small Business Financing Program

The Government of Canada, in cooperation with participating banks and credit unions, supports small businesses to finance the cost of:

  • purchasing or improving land and buildings used for commercial purposes
  • purchasing new or existing renovations to premises occupied by the business as a tenant
  • purchasing or improving new or used equipment (including commercial vehicles)

Eligible borrowers under the CSBFP are small businesses or start-ups operating for profit in Canada with gross annual revenues of $10 million or less.  Not eligible under this program are not-for-profit organizations, charitable and religious organizations.  Agriculture and Agri-Food Canada has a similar program for the farming industry.  Farming applicants can visit www.agr.gc.ca) for more information.

The maximum loan amount a borrower can access under this program is $1 million, of which no more than $350,000 can be used to finance the purchase or improvement of equipment and the purchase of leasehold improvements.

The CSBFP registration fee is 2% of the total amount of the loan, which can be financed as part of the loan.  Additionally, participating lenders may also charge the same fees (e.g. set-up and renewal fees) they charge for a conventional loan of the same amount. These additional fees would be paid directly to the lender and cannot be financed under this program.

The interest rate may be variable or fixed. For a variable rate, the maximum chargeable is the lender’s prime lending rate plus 3%. For a fixed rate, the maximum chargeable is the lender’s single-family residential mortgage rate plus 3%.

More information on the CSBFP is available at www.ic.gc.ca.