As the new year begins, it’s the perfect time to reflect, reset, and take bold steps toward your business goals. Whether you’re a budding entrepreneur or looking to expand your current business, new beginnings offer the opportunity to turn your vision into reality. And this year, there’s a valuable tool at your disposal: the Canada Small Business Financing Program (CSBFP), a federal program designed to help small businesses access the financing they need to grow.
What is the Canada Small Business Financing Program?
The CSBFP helps small businesses secure loans by sharing the risk with financial institutions. This means easier access to much-needed capital for eligible businesses across Canada. Over the past decade, more than 53,000 small businesses have benefited from this program, receiving a total of $10 billion in loans.
With enhanced loan options, increased limits, and improved terms, this program can help you fund essential business needs like purchasing equipment, improving leased properties, and even covering working capital costs.
Key Features of the Program
Maximum Loan Amount: Up to $1.15 million, including:
- Up to $1 million for term loans (of which $500,000 can go toward leasehold improvements and equipment purchases).
- Up to $150,000 for intangible assets and working capital.
- Up to $150,000 for lines of credit.
Eligible Uses: Loans can be used to finance:
- Purchase or improvement of land or buildings.
- Purchase of new or used equipment.
- Renovations to leased property.
- Working capital and intangible costs, such as software or franchise fees.
Interest Rates: Competitive rates, with a maximum of:
- Prime + 3% for term loans.
- Prime + 5% for lines of credit.
Who Can Apply?
This program is open to small businesses or start-ups operating in Canada with gross annual revenues of $10 million or less. Note that farming businesses are not eligible, but a similar program—the Canadian Agricultural Loans Act Program—is available for the agricultural sector.
If you’re ready to take the next step, applying is straightforward:
- Discuss your business needs with your regular financial institution.
- Present your business plan or proposal for review.
- Once approved, the financial institution will register the loan with Innovation, Science, and Economic Development Canada (ISED).
For more details or to find a lender near you, click the button below.
Other Resources for Entrepreneurs
Beyond the CSBFP, there are other tools and resources to support your entrepreneurial journey:
- Canada Business App: Access government services and resources from your phone.
- Business Benefits Finder: Match your business needs with available programs across federal, provincial, and territorial levels.
This New Year, take the leap toward making your business dreams a reality.
