Canada Small Business Financing Program
A federal program that helps small businesses get loans from banks and credit unions by sharing the risk with the lender. Here is how it works, in plain language.
How it works
The Canada Small Business Financing Program (CSBFP) is run by Innovation, Science and Economic Development Canada. You do not apply to the government: you apply to a participating financial institution, which makes the loan, decides whether to approve it and sets the rate within the program's limits. The government shares part of the lender's risk, which can make a lender more willing to say yes.
What it can finance
According to the official program details, term loans can finance real property, leasehold improvements, new or used equipment, and, within smaller limits, intangible assets and working capital. Lines of credit are also available under the program.
Key numbers (from the program page)
- Eligible businesses: operating in Canada, gross annual revenues of $10 million or less (start-ups included; farming excluded)
- Maximum per borrower: $1.15 million
- Term loans: up to $1,000,000, of which up to $500,000 for leasehold improvements and equipment, and within that up to $150,000 for intangible assets and working capital
- Lines of credit: up to $150,000
- Registration fee: 2%, paid by the borrower to the lender, can be financed
Figures summarised from the official program page at the time of writing. Program rules change; always check the official page before you rely on them.
Is it right for you?
- You can wait a few weeks for a decision
- You are buying equipment, improving a lease or buying property
- You want a longer term and a capped rate
If you need money this week, it is not the right tool. Faster options, such as working capital or equipment financing, cost more.
Where CELER Funding fits
CELER Funding is a referral service, not a lender and not a program partner. We can refer you to lenders that offer CSBFP loans, alongside other options, so you can compare. The lender handles the application and the decision.
In the United States
The US equivalent is the Small Business Administration's loan programs. See the official SBA loans page and our page on government-backed loans.
FAQ
CSBFP questions
Does CELER Funding make CSBFP loans?
No. CSBFP loans are made by participating financial institutions such as banks and credit unions. We can refer you to lenders that offer them; we are not a program partner, and the lender makes the credit decision.
Who can apply for a CSBFP loan?
According to the program, small businesses and start-ups operating in Canada with gross annual revenues of $10 million or less. Farming businesses are covered by a separate program. Check the official page for current rules.
How much can I borrow?
The program page lists a maximum of $1.15 million per borrower, with sub-limits by type: term loans up to $1,000,000 and lines of credit up to $150,000, with lower limits for equipment, leasehold improvements, intangible assets and working capital. The lender decides how much it will lend you.
Are there fees?
The program page lists a 2% registration fee, paid by the borrower to the lender, that may be financed. Lenders set the interest rate within the program's maximums and may charge their own fees.
Compare a CSBFP loan with your other options
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