Canada Small Business Financing (CSBF) Loan

Startups and early-stage companies can access competitive interest rates on loans valued up to $1million.

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 purchase of eligible assets of an existing business may qualify for financing under the CSBFP. You may finance the lesser of the cost of purchase and the appraised value of the eligible assets.

How can this help my business?

  • The Canada Small Business Financing Loan can provide a Canadian business with up to $1,000,000 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, leasehold improvements

What else do I need to know?

  • 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 $10,000,000
  • 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

 

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