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

Special Requirements

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