The stats tell the story. Of the 1.22 million businesses operating in Canada in 2022, 97.8%, or 1.19 million, were defined by the Government of Canada as” small businesses.” These businesses employed 5.7 million Canadians or 46.8% of the total private labour force.
There’s nothing small about “small” business.
The
Canada Small Business Financing Program (CSBFP) is a government-backed program offering Canadian businesses
loans of up to $1.15 million.
Though the program parameters, including fees, maximum interest rates, maximum loan sizes, and loan asset classes, are administered through the
Department of Innovation,Science and Economic Development Canada (ISED), the review of the application and business plan and the approval and administration of the loan is overseen by banks, credit unions, and caisses populaires across Canada, including SCU.
Small businesses or start-ups with gross annual revenues of $10 million or less that operate in Canada and provide a product or service to the public are eligible to submit a business plan and application to the financial institution of their choice.
Below is a brief overview of the program
| Financing type |
Available financing |
Program purchasing parameters |
| Term loans |
Maximum loan $1.0 million to any single borrower |
UP to a maximum of $1.0 million for term loans for any one borrower, of which no more than $500,000 can be used for the:
- purchase of leasehold improvements
- improving leased property
- purchase or improvement of new or used equipment and, of this amount, a maximum of $150,000 can be used for intangible assets and working capital costs.
May be used to finance:
- commercial vehicles
- hotel or restaurant equipment
- computer or telecommunications equipment and software
- production equipment
- costs to buy a franchise
- leasehold improvements
- goodwill on existing business purchase
- program registration fee
|
| Lines of credit |
Up to a maximum of $150,000 for lines of credit for a period up to 5 years from date of registration |
May be used to pay for working capital costs, such as the:
- day-to-day operating expenses of the business
- program registration fee
|
Please note: The CSBFP registration fee may also be financed under a term loan or line of credit.
How to apply for CSBFP?
-
Find a participating lender: The CSBFP is offered through financial institutions across Canada, including credit unions such as SCU. Start by reaching out to a participating lender to learn more about their CSBFP options and confirm eligibility.
-
Build your business plan: A strong business plan is central to your application. It should outline your company's goals, market opportunities, and growth strategy. It’s also important to describe how the financing will be used and how it will contribute to long-term success.
-
Prepare financial information: Your application should be backed by clear financial documents to show the strength and viability of your business. These may include income statements, cash flow forecasts, and balance sheets. For start-ups, projections for the next several years are important.
-
Submit your application: Once your documents are complete, submit them to your chosen participating lender. A complete and well-prepared application will help ensure the process moves forward smoothly.
Why consider the CSBFP?
Access to financing is one of the biggest challenges faced by small businesses. Traditional loans can be difficult to secure, especially for newer companies or those without significant collateral. The Canada Small Business Financing Program is one of the long-standing and most widely accessed federal programs supporting small businesses in Canada. Over the past decade, it has supported more than 53,000 loans to small businesses across Canada, providing over $10 billion in financing. By creating a structured pathway to financing, the program helps businesses of all sizes within the small business category take on projects that might otherwise be delayed.
Since its inception, the program has supported growth in industries ranging from hospitality and retail to technology and professional services. The program is built on well-defined parameters, including loan limits, interest rate caps, and eligible expenses. For business owners this creates transparency and predictability in planning, making it easier to map out long-term strategies.
Most importantly, the CSBFP emphasizes possibility. It is not just about meeting today’s needs but about building the capacity to reach tomorrow's goals.
Moving your business forward
Every business is built on vision and determination, but having the right financial tools is what turns plans into reality. The Canada Small Business Financing Program has already helped tens of thousands of businesses across the country invest in growth, modernize their operations, and build stronger futures.
If you’re ready to take the next step for your business, the CSBFP offers a clear path to secure funding for the projects that matter most to you.
Connect with us to explore financing through CSBFP today!
