Canada Small Business Financing Program

Last updated on October 10, 2023


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

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The Canada Small Business Financing Program (CSBFP) has been helping small businesses with their financing needs for over 50 years. Under the program, the Government of Canada makes it easier for small businesses to get loans from financial institutions by sharing the risk with the lenders.