Canada Small Business Financing Program
How and where to apply for a loan
Application for a loan under the Canada Small Business Financing Program may be made at any bank, credit union, caisse populaire and/or any other financial institution.
There are approximately 1,540 lenders with about 15,200 points of service in all provinces and territories. Lenders are responsible for all credit decisions, making the loans, providing loan funds, and registering the loans with Industry Canada. Lenders are also responsible for the administration of loans.
Eligible Small Business:
* business carried on in Canada;
* its purpose is for gain or profit, and
* for an existing business: the estimated gross annual revenues generated from all the operations within the small business of the borrower must not exceed $5,000,000 for the business\' fiscal year during which the CSBF loan is approved, or
* for a new business: the estimated annual gross revenues generated from all the operations within the small business of the borrower must not be expected, at the time the CSBF loan is approved, to exceed $5,000,000 during the first 52 weeks of operation.
Ineligible Small Business:
* \"farming\" as defined in the 1980 Standard Industrial Classification of Statistics Canada, Major Group 01 - Agricultural Industries;
* charitable or religious organization;
* any business not operating for gain or profit (i.e. private club).
Interest rates on loans
Interest rates on loans may be either floating or fixed. The floating rate cannot be more than 3 percent higher than a lender\'s prime lending rate. Fixed rates cannot be more than 3 percent higher than the lender\'s residential mortgage rate for the term of the loan.
What is eligible for financing
CSBF loans can finance up to 90 percent of the cost of:
* the purchase or improvement of real property and immovables;
* the purchase of leasehold improvements, or improvements to leased property; and
* the purchase or improvement of new or used equipment.
The maximum loan amount a small business can access is $250,000.