Canada Small Business Finance

This federal government guaranteed loan provides the financing you need to get a business started or help an existing business grow. The CSBF Loan is designed to help businesses purchase, install, renovate and modernize business equipment and other fixed assets.

• The Canada Small Business Financing Loan can provide a Canadian business with up to $500,000 in financing for the purchase of land or business premises ($350,000 for leasehold improvements and equipment)
• With assistance from the federal government, businesses can support their financing requirements without using personal assets as security
• Term loans extend financing assets not normally covered by traditional financing options, for example, lease improvements
• Financing can be used to cover up to 90% of the eligible costs related to leasehold improvements and equipment
• If the loan is for the purchase of premises, 50% of the floor space must be for your business activity
• Current fiscal year gross revenues must not exceed $5,000,000
• The maximum value of all CSBF Loans an independent small business may have outstanding with all lenders cannot exceed $500,000 ($350,000 for leasehold improvements and equipment)
• Applications must be submitted with a business plan which includes financial statements or projections
• Eligible purchases made within the past six months can be financed
• Loan terms are generally 7-10 years depending on the asset being financed
• Maximum interest rate on variable rate loans is Prime + 3.0%, fixed rate loans is Residential Mortgage Rate + 3.0% which includes an annual administration fee equal to an annual rate of 1.25% which is payable to the government
• Personal guarantees are required but are limited to a maximum of 25% of the loan
• A one-time up front government registration fee of 2% of the loan amount is payable to the government and can be added to the loan principal