CSBFP
The Canada Small Business Financing Program (CSBFP) makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
The maximum loan amount for a borrower is $1.15 million.
Up to a maximum of 500,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment and of that amount, a maximum of 150,000 for lines of credit.
Discuss your business needs with a financial officer at any bank, Caisse Populaire, or credit union in Canada. The financial officer will review your business proposal and make a decision on your loan application. Once the decision is made to provide financing, the financial institution will disburse the funds and register the loan with Innovation, Science, and Economic Development Canada (ISED). (Find a lender near you)
What can be financed?
Term loans can be used to finance the following costs:
purchase or improvement of land or buildings used for commercial purposes purchase or improvement of new or used equipment purchase of new or existing leasehold improvements, i.e., renovations to a leased property by a tenant intangible assets and working capital costs
For example, you can use a term loan to finance:
commercial vehicles hotel or restaurant equipment computer or telecommunications equipment and software production equipment costs to buy a franchise
Lines of credit can be used to pay for working capital costs, that is, day-to-day operating expenses of the business.
For term loans, the interest rates are determined by your financial institution and may be floating or fixed.
Floating: The maximum chargeable is the lender’s prime lending rate plus 3%. Fixed: The maximum chargeable is the lender’s single-family residential mortgage rate for the term of the loan plus 3%.
For lines of credit, the maximum chargeable is the lender’s prime lending rate plus 5%.
For term loans, the 2% registration fee is based on the total amount loaned under the program.
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.
Lenders have the option to take an unsecured personal guarantee. For real property and equipment, security must be taken on the assets financed. For leasehold improvements, intangible assets, working capital costs and when financing a line of credit, the lender must take security on other business assets.
Suggested Prompts
How do interest rates for CSBFP loans compare to other small business financing options in Canada?
What are the main advantages for a small business to use the CSBFP instead of traditional bank loans?
In what situations might a lender prefer to take security on assets rather than requiring an unsecured personal guarantee?
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Introduction & Onboarding (Pre-Program)
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Welcome to NexGen - Custom International Acceleration Program
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Lifestyle Module
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Housing: Choosing Where to Live in Vancouver
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Introduction: What is Non Dilutive Funding?
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Introduction: Resources
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Loans Available in Canada: Resources
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Loans Available in Canada: RBCx
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Loans Available in Canada: TIMIA Capital
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Loans Available in Canada: Clear.Co
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Loans Available in Canada: Canada Small Business Financing Program (CSBFP)
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Loans Available in Canada: WeBC - Loans for Young Women Entrepreneurs in British Columbia
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Loans Available in Canada: Other Loans (list)
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BDC: Introduction
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NexGen - Offboarding