Unlocking the Canada Small Business Financing Program advantage

2 min read

Small businesses form the cornerstone of Canada's economy, driving innovation, creating jobs, and building communities. Yet, for many entrepreneurs, getting access to capital can be a challenge. That’s where the Canada Small Business Financing Program (CSBFP) can help, offering businesses new financing options, including lines of credit and higher loan amounts.

Who is eligible?

If your company earns less than $10 million in revenues a year, you could be eligible for a term loan up to $1M and a line of credit up to $150,000.

While farming businesses aren’t eligible, they can explore alternatives like the Canadian Agricultural Loans Act program.

What can the money be used for?

Your line of credit can be used to cover practical day-to-day operating costs like:

• payroll
• rent
• inventory and more

Term loans can be used for costs like:

• purchasing or improving land or buildings used for commercial purposes
• purchasing or improving new or used equipment
• renovations to a leased property by a tenant
• intangible assets (i.e. goodwill)
• working capital costs (i.e. inventory) and more

Additionally, registration fees, based on the total authorized loan amount, can be financed through the loan, reducing your upfront costs.

Where can I apply?

Your local lender is your first point of contact to find out if you qualify for the CSBFP. You can speak with financial officers at banks, credit unions, or caisses populaires across Canada.

Once the lender approves your application, it disburses the funds, manages your loan, and registers it with Innovation, Science, and Economic Development Canada (ISED), ensuring transparency and accountability throughout the process.

Back to First Things First