Canada Small Business Financing Program
The Canada Small Business Financing Program is a loan program in collaboration with financial institutions.
Term loans can be used to finance these costs:
- Purchase or improvement of land or buildings used for commercial purposes
- Purchase or improvement of new or used equipment
- Purchase of new or existing leasehold improvements, such as renovations to a leased property by a tenant
- Intangible assets and working capital costs
Lines of credit can be used to pay for working capital costs, like day-to-day operating expenses of the business.
The borrower and lender must negotiate an appropriate amount of financing. The maximum loan amount for a borrower is $1.15 million:
- Lines of credit – Up to a maximum of $150,000
- Term loans – Up to a maximum of $1,000,000:
- For any one borrower, and
- No more than $500,000 can be used for purchasing leasehold improvements or improving leased property or purchasing or improving new or used equipment, and
- Of that amount, a maximum of $150,000 could be used for intangible assets and working capital costs
Small businesses or start-ups operating for profit in Canada, with gross annual revenues of $10 million or less are eligible.
Farming businesses are not eligible under this program. Agriculture and Agri-Food Canada has a similar program for the farming industry.
For more information, visit the business eligibility section.
Last updated: October 10, 2023