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This federal government guaranteed loan provides the financing you need to get a business started or help an existing business grow. The CSBF Loan is designed to help businesses purchase, install, renovate and modernize business equipment and other fixed assets.
How can this help my business?
- The Canada Small Business Financing Loan can provide a Canadian business with $250,000 in financing for leasehold improvement, equipment, and land or business premises
- With assistance from the federal government, businesses can support their financing requirements without using personal assets as security
- Term loans extend financing assets not normally covered by traditional financing options, for example, lease improvements
What else do I need to know?
- Financing can be used to cover up to 90% of the eligible costs related to leasehold improvements and equipment
- If the loan is for the purchase of premises, 50% of the floor space must be for your business activity
- Current fiscal year gross revenues must not exceed $5,000,000
- The maximum value of all CSBF Loans an independent small business may have outstanding with all lenders (including RBC Royal Bank) cannot exceed $250,000
- Applications must be submitted with a business plan which includes financial statements or projections
- Eligible purchases made within the past six months can be financed
- Loan terms are generally 5-7 years at fixed or variable interest rates
- Personal guarantees are required but are limited to a maximum of 25% of the loan
- A one-time up front government registration fee of 2% of the loan amount is payable to the government and can be added to the loan principal
- An annual administration fee equal to an annual rate of 1.25% is payable to the government and will be included in your loan interest rate
- Business Loan Insurance Plan is available (certain conditions may apply)
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