The Canada Small Business Financing Program offered by the Government of Canada makes it easier for small businesses to get loans from financial institutions by sharing the risk with the lenders. The program was designed to help new businesses get started and help established companies make improvements and expand as well as improve access to loans that would otherwise not be available to small businesses.
The program is available to small businesses or start-ups operating in the for profit sector in Canada with gross annual revenues of $5,000,000 or less.
Loans of up to a maximum of $500,000 for any one borrower are available and can be used for the purchase of land, buildings, new and used equipment and leasehold improvements. Specific examples include commercial vehicles, hotel or restaurant equipment, computer equipment and software, and manufacturing equipment.
The loan cannot be used to finance goodwill, working capital, inventories, franchise fees and R&D.