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Canada Small Business Financing Program
New in Canada's Economic Action Plan
Through Canada's Economic Action Plan, the federal government increased the maximum loan amount under the Canada Small Business Financing Program (CSBFP) from $250,000 to $350,000 and to $500,000 for real property. Lending institutions with a portfolio above $500,000 will also be allowed to claim reimbursement on losses of up to 12 percent of the value of their portfolio, up from the current 10 percent. In addition, a package of regulatory amendments has been developed to ease the administrative burden of the program.
About the Program
The Canada Small Business Financing Program helps small and medium-sized enterprises access financing. Industry Canada administers the program in partnership with a network of private sector lenders, with over 1,200 points of service across all provinces and territories. Lenders are responsible for all credit decisions and for making the loans. As the government covers a portion of eligible losses due to default, the CSBFP encourages lenders to offer loans they would not otherwise make.
How It Works
Financial institutions deliver the program. The government does not participate in lending decisions.
Entrepreneurs should discuss their business needs with a financial officer at any bank, caisse populaire or credit union in Canada. The financial officer will review the business proposal and make a decision on the loan application. Once the decision is made to offer financing under the program, the financial institution will register the loan with Industry Canada.
Who Is Eligible
Eligible institutions include small businesses operating for profit in Canada, with gross annual revenues of $5 million or less, excluding farming businesses, not-for-profit organizations, and charitable and religious organizations.
How to Find Out More
For more information, please contact the Small Business Financing Directorate, Industry Canada, at 1-866-959-1699 (toll-free), 613-952-0290 (fax) or CSBFP-PFPEC@ic.gc.ca. Information is also available from the Industry Canada website.
For more information on the Economic Action Plan initiatives, follow the links below:
