Canada Small Business Financing Program (CSBFP)

The Canada Small Business Financing Program (CSBFP) is one of the most important funding tools available to small and medium-sized businesses in Canada. It is administered by Innovation, Science and Economic Development Canada (ISED) and delivered through banks, credit unions, and other financial institutions.

By sharing the risk between the Government of Canada and lenders, the program encourages financial institutions to make loans that they might not otherwise approve, helping new and growing businesses access the financing they need for equipment, leasehold improvements, and real property.

You can learn more directly from the Government of Canada’s website:
👉 Canada Small Business Financing Program – Innovation, Science and Economic Development Canada (ISED)

How the Program Works

Under CSBFP, a small business applies for financing through a regular bank or credit union, not directly through the government. The lender reviews the application as it would for any commercial loan, but because the government guarantees a portion of the loan, the lender’s risk is reduced, which increases the applicant’s chance of approval.

Official reference:
👉 How the Canada Small Business Financing Program Works – ISED

Who Is Eligible

To qualify under the CSBFP, a business must:

• Operate in Canada and be for-profit
• Have gross annual revenues of $10 million or less
• Be a sole proprietorship, partnership, or incorporated business

Most industries qualify, with a few exceptions such as charitable organizations, farming businesses (covered under a separate program), and non-profit associations.

Eligibility details:
👉 Who Can Apply – ISED

What Can Be Financed

The CSBFP helps finance the purchase or improvement of assets needed for business growth.

Eligible uses include:

• Equipment purchases: machinery, computers, vehicles used for business
• Leasehold improvements: renovations to leased premises
• Real property: purchase of land or buildings for business use

Operating expenses and working capital (such as inventory or advertising) are not eligible under this program.

Learn more:
👉 Eligible and Ineligible Costs – ISED

Loan Limits and Terms

Maximum financing: up to $1,150,000 per business

• Up to $1,000,000 is available for term loans, of which no more than $500,000 can be used for purchasing leasehold improvements or for purchasing or improving new or used equipment. Within this amount, a maximum of $150,000 may be applied toward intangible assets and working capital costs.
• Up to $150,000 is available for lines of credit

Loan terms, repayment schedules, and interest rates are negotiated directly between the borrower and the lender, in accordance with the guidelines established by Innovation, Science and Economic Development Canada (ISED).

Government reference:
👉 Loan Conditions – ISED

Why Businesses Choose the CSBFP

For many entrepreneurs, especially start-ups and newcomers to Canada, traditional lending can be difficult to access without significant collateral or long financial histories.

The CSBFP offers:

• Easier access to credit for small and growing businesses
• Lower risk for lenders, encouraging approvals
• Government support that increases confidence for both borrower and lender

The Role of The Biz Plans

At The Biz Plans, we help entrepreneurs prepare lender-ready business plans and financial projections tailored to CSBFP requirements. A professional, well-structured plan increases your likelihood of approval by demonstrating repayment ability, sound cash flow management, and clear financial assumptions.

We work with clients to:

• Build financial models aligned with CSBFP loan eligibility and structure
• Prepare documentation for banks and credit unions participating in the program
• Support ongoing reporting or compliance once the loan is approved

How to Apply

Step-by-step process:

• Contact your financial institution and confirm that your bank or credit union participates in the CSBFP.
• Prepare a detailed business plan and financial forecast (we can assist).
• Submit your loan application directly through your lender.
• The lender evaluates the application, determines eligibility, and if approved, registers the loan with the Government of Canada under the CSBFP.

Official resources:
👉 How to Apply – ISED

Useful Government Resources

• Program Overview – Canada Small Business Financing Program (ISED)
• Participating Lenders List – ISED
• Forms and Guidelines – ISED
• Contact Information – CSBFP Office

Final Thoughts

The Canada Small Business Financing Program remains one of the most powerful tools for entrepreneurs in Canada to start or expand their businesses. By combining the government’s risk-sharing framework with a well-prepared business plan, applicants can access financing opportunities that may otherwise have been out of reach.

If you are preparing to apply for the CSBFP or simply want to understand how your financials will be evaluated, The Biz Plans can help you prepare a comprehensive, lender-ready package that meets both program and bank requirements.

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