Canada Small Business Financing Program (CSBFP)
Everything you need to know about securing government-guaranteed loans up to $1M for your Canadian small business through the CSBFP program.
What is the CSBFP?
The Canada Small Business Financing Program (CSBFP) is a loan loss-sharing program between the Government of Canada and participating financial institutions. It helps small businesses access loans for equipment, leasehold improvements, and real property purchases.
Program Benefits
- • Government guarantees 85% of loan
- • Competitive interest rates
- • Flexible repayment terms up to 10 years
- • Available through 1,800+ lenders
Eligible Uses
- • Equipment and machinery purchase
- • Leasehold improvements
- • Real property acquisition
- • Business premises improvement
CSBFP Loan Categories
Finance new or used equipment, machinery, and vehicles essential for business operations.
Eligible Equipment:
- • Manufacturing machinery
- • Computer hardware and software
- • Vehicles for business use
- • Office furniture and equipment
Key Features:
- • Equipment serves as collateral
- • Flexible repayment schedule
- • No personal guarantees required
- • Quick approval process
Improve leased commercial premises to better suit your business needs and operations.
Eligible Improvements:
- • Renovations and upgrades
- • Electrical and plumbing work
- • Flooring and interior design
- • Accessibility improvements
Requirements:
- • Valid lease agreement required
- • Minimum 1-year lease term
- • Landlord consent may be needed
- • Improvements must add value
Purchase commercial real estate for your business operations and growth.
Eligible Properties:
- • Office buildings
- • Retail spaces
- • Manufacturing facilities
- • Warehouses and storage
Important Notes:
- • Property must be for business use
- • Professional appraisal required
- • Environmental assessment needed
- • Title insurance mandatory
CSBFP Eligibility Requirements
✅ Eligible Businesses:
- Small Business: Annual gross revenues of $10M or less
- For-Profit: Must be operated for profit
- Canadian Operations: Operating in Canada
- All Industries: Most business sectors eligible
❌ Ineligible Businesses:
- Farming & Agriculture: Primary agriculture operations
- Charitable Organizations: Non-profit entities
- Religious Organizations: Faith-based organizations
- Financial Services: Banks, insurance companies
CSBFP Application Process
Choose Your Lender
Select from over 1,800 participating financial institutions including major banks, credit unions, and alternative lenders.
Prepare Required Documents
Gather business financials, business plan, equipment quotes, and personal information for all guarantors.
Submit Loan Application
Work with your chosen lender to complete and submit the CSBFP loan application with all supporting documentation.
Lender Review & Approval
Lender reviews application using standard credit criteria and CSBFP guidelines. Decision typically within 2-4 weeks.
Loan Closing & Funding
Complete loan documentation, pay registration fee (2% + HST), and receive funding for your business project.
Interest Rates & Terms
Current CSBFP Interest Rate Structure
CSBFP loans have regulated maximum interest rates to ensure affordability for small businesses.
Floating Rate Loans:
- Prime + 3% (maximum)
- Rate adjusts with prime rate changes
- Most common option chosen
Fixed Rate Loans:
- Prime + 3% (at time of approval)
- Rate locked for entire term
- Provides payment certainty
Maximum repayment period for all loan types
One-time fee paid on loan amount
Pay off early without additional charges
CSBFP Success Tips
✅ Increase Your Approval Odds:
- Strong Business Plan: Detailed financial projections and market analysis
- Good Credit History: Both personal and business credit
- Industry Experience: Demonstrate relevant experience
- Adequate Equity: Contribute 25% of project cost
❌ Common Mistakes to Avoid:
- Incomplete Applications: Missing required documentation
- Unrealistic Projections: Overly optimistic financial forecasts
- Poor Cash Flow: Insufficient working capital planning
- Wrong Lender Choice: Not matching lender specialty
Ready to Apply for CSBFP Funding?
Get the detailed application guide or work with our experts to maximize your CSBFP approval chances and secure the funding you need.
DIY Approach
Get our comprehensive step-by-step CSBFP application guide with templates and checklists.
Get Application GuideExpert Assistance
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Get Expert Help95% approval rate with expert help vs 65% DIY • Average funding secured: $185K