Canada Small Business Financing Program

HELPING SMALL BUSINESSES GET LOANS

The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
Over the past 10 years, small businesses have received $9.5 billion in asset-based financing representing over 63,000 loans made.

WHO IS ELIGIBLE?

Small businesses or start-ups operating for profit in Canada, with gross annual revenues of $10 million or less. Not eligible under this program are farming businesses (for a similar program for the farming industry, visit www.agr.gc.ca), not-for-profit organizations, or charitable and religious organizations.

HOW MUCH FINANCING IS AVAILABLE?

Up to a maximum of $1,000,000 for any one borrower, of which no more than $350,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment.

WHAT CAN BE FINANCED?

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, that is, renovations to a leased property by a tenant

For example, you can use a loan to finance:
• commercial vehicles
• hotel or restaurant equipment
• computer or telecommunications equipment and software
• production equipment
• eligible costs to buy a franchise

You cannot use a loan to finance items such as:
• goodwill
• working capital
• inventory
• franchise fees
• research and development