The CSBFP helps banks, credit unions and caisses say yes: the federal government shares the risk on loans for equipment, property, leasehold improvements, intangibles and working capital. See who qualifies, the limits, the rate caps and how to apply.
The Canada Small Business Financing Program is a government loan-guarantee program — you borrow from your own bank, credit union or caisse populaire, and the federal government shares the risk so lenders can approve loans they might otherwise decline. Most small businesses with $10 million or less in annual revenue qualify (farming uses the separate CALA program). You can borrow up to $1.15 million for equipment, commercial property, leasehold improvements, intangible assets and working capital, repaid over a term of up to 15 years.
Eligibility is about your business size and type, not your industry. Most small businesses and start-ups operating in Canada qualify; your bank or credit union approves the loan under the program's rules.
Decide what you're financing — equipment, property, leasehold improvements, intangibles or working capital — and how much, within the $1.15M limits.
The CSBFP is delivered by financial institutions, not the government. Approach a chartered bank, credit union or caisse populaire that offers the program.
Bring a business plan, financial statements or projections, and quotes for what you're buying. The lender reviews and decides whether to approve.
If approved, the lender registers the loan under the CSBFP (a one-time 2% fee, financeable). You repay over a term of up to 15 years.
You can borrow up to $1.15M in total: up to $1M in term loans plus up to $150K as a line of credit. Within the $1M term-loan amount, no more than $500K can go to equipment and leasehold improvements, and within that, up to $150K for intangible assets and working capital. Lenders set the interest rate within the programs caps, and a one-time 2% registration fee (which can be financed) applies.
Most for-profit, not-for-profit and charitable small businesses and start-ups operating in Canada are eligible, as long as estimated gross annual revenue is $10 million or less in the fiscal year the loan is approved. Farming businesses are not eligible under the CSBFP — they use the separate Canadian Agricultural Loans Act (CALA) program. You apply through a financial institution, not the government.
Up to $1.15 million in total per borrower: up to $1 million in term loans plus up to $150,000 as a line of credit. Within the $1 million term-loan amount, no more than $500,000 can be used for equipment and leasehold improvements, and within that, a maximum of $150,000 for intangible assets and working capital costs.
Term loans can finance the purchase or improvement of commercial real property, new or used equipment, leasehold improvements, intangible assets and working capital. The 2% registration fee can also be financed. The line of credit covers day-to-day operating costs. It cannot be used for farming (see CALA).
Lenders set the rate within program caps. A floating-rate term loan is capped at the lender's prime rate plus 3%; a fixed-rate term loan at the lender's residential mortgage rate plus 3%; and a line of credit at prime plus 5%. A one-time registration fee of 2% of the loan applies and can be added to the loan.
The CSBFP is delivered by financial institutions, not the government. You apply directly to a chartered bank, credit union or caisse populaire; the lender reviews and approves the loan and registers it under the program, which shares the risk on eligible losses. Bring a business plan, financial statements or projections, and quotes for what you are financing.
The maximum term — the length of government coverage — is 15 years for all loan classes since July 2022. The CSBFP does not finance farming operations (use CALA), and cannot exceed the $1.15 million ceiling or the per-category sub-limits. Confirm current details on the official ISED program page before you apply.
Run a free check against your business profile — CSBFP, BDC, grants and more — before you talk to your bank.