Small businesses are an important part of Canada’s economy, but they face unique challenges when seeking financing. Here’s a program that members should know about: the Canada Small Business Financing Program. This program makes it easier for small businesses to obtain loans from financial institutions by sharing the risks with lenders.
Eligibility includes small businesses operating for profit in Canada with gross annual revenues of $5 million or less. Farming businesses, not-for-profit organizations, or charitable and religious organizations are not eligible under this program. Loans can be used to finance up to 90% of the cost of: purchasing or improving land, real property or immovables; purchasing leasehold improvements or improving leased property; or purchasing or improving new or used equipment.
Financing is available up to a maximum of $500 000 for any one business, 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.
Financial institutions deliver the program and make all credit decisions. Small businesses must visit their local bank, credit union or caisse populaire to obtain a loan under the program. For more on this program call toll free: 866-959-1699, email: CSBFA-LFPEC@ic.gc.ca or visit: www.ic.gc.ca/csbfa.