Government Guaranteed Small Business Loan Program

The Canadian Small Business Financing Program, a joint initiative between the government and lenders, facilitates easier access to loans for small businesses from financial institutions. Over the past decade, more than 53,000 loans totaling 10 billion Canadian dollars have been granted to small businesses under this guarantee program.

The primary objectives of this loan guarantee program are:

To increase the availability of financing for the establishment, expansion, modernization, and improvement of small businesses.
To facilitate access to loans that would typically be challenging for small businesses to obtain or could only be secured under less favorable conditions.
To stimulate economic growth for small and medium-sized enterprises, creating employment opportunities.

Eligibility

Small businesses or startups operating within Canada (excluding agricultural enterprises) have an annual total revenue not exceeding 10 million Canadian dollars.

Borrowers

Sole Proprietors, Partnerships, and Corporations

Funding Limits

Purchase of property up to 1 million Canadian dollars;
Leasehold improvements up to 500,000 Canadian dollars;
Intangible assets and working capital not exceeding 150,000 Canadian dollars;
Credit limit up to 150,000 Canadian dollars;
The maximum loan amount for a borrower does not exceed 1.15 million Canadian dollars.

Rates & Fees

Floating interest rate not exceeding Prime + 3%;
Fixed interest rate not exceeding the housing loan rate + 3%;
Registration fee is 2% of the loan amount;
Applicants must meet the approval criteria of the lending institution, including personal credit, repayment capacity, etc.

Miscillaneous

After loan approval, it can be utilized no later than 180 days;
For the costs of purchasing property, equipment, and renovations, a maximum of 90% can be loaned.