The Canada Small

The Canada Small Business Financing Program has been working to increase the availability of loans for small businesses for 50 years.  Established by Industry Canada in 1961, the program was created to make it easier for small businesses to obtain financing from banks and institutions by sharing the risk with the lenders.

The focus of the program is to help new businesses get started and to support established firms wanting to make improvements to develop their business.  The Canada Small Business Financing Program improves access to loans, which would otherwise not be available to small businesses, in order to stimulate economic growth.

 

Each year the program helps small businesses access 10,000 loans worth over $1 billion.

Who can apply for the Canada Small Business Program?

If you have a Canadian small business with a gross annual revenue of $5 million or less you will be eligible for this program.

 

Exceptions to the program include: non-profit organizations; charitable and religious organizations, and farming businesses that have access to a similar program run by Agriculture and Agri-Food Canada.

What Can the Loan be Used for?

The Canada Small Business Financing Program is for new and existing businesses alike.  Financing from the program can only be used for specified purposes, including the financing of up to 90% of the cost of:
 

• Purchasing or improving land, real property or immovables;
• Purchasing leasehold improvements or improving leased property;
• Purchasing or improving new or used equipment.

Successful applicants can receive up to $500,000 for their business, of which no more than $350,000 can be allocated to leasehold improvements or improving new or existing equipment.

What is Excluded from the Loan?

• Improve a family dwelling for non-commercial purposes
• Purchase shares
• Finance working capital such as (finance inventory, accounts receivable, etc.)
• To give permits and licenses used in the operation of eligible assets
• Franchise fees
• Feasibility studies for small business; professional fees (e.g. legal, accounting and appraisal)
• Survey costs
• Building permits
• Vehicle for personal use
• Intangibles costs (i.e. research and development costs, prepaid expenses, good will, etc)
• Purchase real estate for resale