What is a CSBFP

The Canada Small Business Financing Program (CSBFP) is a federal government initiative designed to help small businesses and startups access affordable financing that might otherwise be unavailable through traditional lenders. Launched to support economic recovery and innovation, the program acts as a "loan guarantee" mechanism, where the Government of Canada shares the risk with financial institutions—covering up to 90% of any losses on defaulted loans. This makes lenders more willing to approve funding for entrepreneurs with solid ideas but limited collateral or credit history.

Who Qualifies?

1. Eligible Businesses: For-profit small businesses (including startups) with annual gross revenues under $10 million CAD. This covers a wide range of sectors, from retail and tech to agriculture and services

2. Exclusions: Not-for-profits, charities, or businesses in specific restricted industries (e.g., real estate speculation or gambling).

3. Location: Available nationwide across Canada.

What Can You Finance?

The CSBFP offers flexible options across three main streams, with a maximum loan limit of $1.15 million per business (combined across categories):

1. Term Loans (up to $500,000): For purchasing or improving fixed assets like equipment, machinery, computers, or leasehold improvements. Repayment terms can extend up to 10 years.

2. Working Capital Loans (up to $150,000): To cover day-to-day operational needs, such as inventory, supplies, or marketing—ideal for scaling operations.

3. Improving Real Property Loans (up to $500,000): For buying or renovating land and buildings to house your business.

Key Benefits

1. Competitive Rates: Loans through approved lenders (banks, credit unions, etc.) at market rates, with no government fees for borrowers. Loan at Prime + 3%. Line of credit at Prime + 5%.

2. Shared Risk: Reduces barriers to approval, helping new or growing businesses get off the ground.

3. Job Creation Focus: Supports Canada's economy by fostering small business success and

How to Apply

1. Prepare your business plan, financial projections, and required documents.

2. Approach an eligible lender (find one via the program's official directory).

3. The lender assesses and approves the loan; the government guarantee is automatic if criteria are met.

Registration fee

1. For term loans, the 2% registration fee is based on the total amount loaned under the program.

2. For lines of credit, the 2% registration fee is based on the total amount authorized.

Registration fees must be paid by the borrower to the lender and they may be financed