How the program works
Under the CSBFP, the Government of Canada guarantees a large share of eligible losses for participating lenders. That lowers the lender's risk and can make approval easier for businesses with limited collateral.
Who qualifies
The program targets small businesses and startups operating for profit in Canada within a gross annual revenue limit. Certain sectors, such as farming (covered by other programs), and some charitable or religious organizations are excluded. Always confirm current eligibility rules and limits with Innovation, Science and Economic Development Canada.
What it can fund
- Purchasing or improving land and buildings used for business
- Leasehold improvements
- New or used equipment
- Certain intangible assets and working capital costs, within program limits
CSBFP vs. private business loans
Government-backed loans can carry attractive terms but typically take weeks to arrange and involve more paperwork. When timing matters, a private term loan or equipment financing from Kacu can be decided in hours. Many owners use both.
Frequently asked questions
Do I apply for the CSBFP directly with the government?
No. You apply through a participating financial institution, which registers the loan under the program.