Canada has several government-backed ways to borrow — from the CSBFP delivered through your bank to crown lenders like BDC and EDC and community-based funds. Here's what each is for, and how to find the right one.
"Government loans" in Canada come in a few forms. The CSBFP is a guarantee — you borrow from your own bank and the government shares the risk, up to $1.15M. BDC and EDC are crown corporations that lend directly: BDC to small and medium businesses generally, EDC to companies that export or sell internationally. In rural and remote areas, Community Futures organizations and the regional development agencies offer local loans and contributions. Which one fits depends on your size, location and what you're financing.
Start with the CSBFP if you're buying equipment, property or leasehold improvements and want to borrow through your existing bank — the government backing makes approval easier. Consider BDC if you want a flexible direct loan for growth or working capital, or EDC if you export. If you're in a rural area, your local Community Futures office and regional development agency may have local programs. Farms use Farm Credit Canada. Many businesses also pair a government loan with a grant and a tax credit — see loans vs grants. CanaGrants matches all of these against your business profile so you don't have to check each one by hand.
For most small businesses, the CSBFP — because you apply through your own bank and the government shares the lender's risk, so it's easier to approve than a regular term loan. The lender still underwrites it.
The CSBFP is a guarantee on a loan from your own bank or credit union. BDC (Business Development Bank of Canada) is a crown corporation that lends to you directly. You can use either — or both, for different needs.
These are loans — repayable with interest. Grants are non-repayable and come from different programs. Many businesses combine a government loan with a grant on the same project (see loans vs grants).
Farming businesses aren't eligible for the CSBFP. The dedicated routes are the Canadian Agricultural Loans Act (CALA) program and Farm Credit Canada (FCC), both built for agriculture.
Run a free check against your business profile — CSBFP, BDC, EDC and more, matched in one place.