Waterloo Region & Guelph

LoanFederal program

Canada Small Business Financing Program (CSBFP)

The CSBFP helps small businesses get loans from banks and credit unions by having the government share the risk with the lender. It's a loan you repay with interest, not a grant. It can be used for equipment, property, leasehold improvements, working capital and more.

Amount
Up to $1.15 million in total: up to $1 million in term loans and up to $150,000 in lines of credit
Status
Year-roundApply any time through a participating lender. The lender makes the decision.
Type
Government-backed loan from your lender (repaid)
Run by
Innovation, Science and Economic Development Canada, through banks and credit unions
Where
All of Canada
Checked on
Nov 13, 2026

Who it's for

  • Start-ups and existing businesses in Canada with gross revenue of $10 million or less
  • Corporations, sole proprietors, partnerships and co-operatives
  • For-profit, not-for-profit and charitable small businesses

Not for

  • Farming businesses (pointed to the Canadian Agricultural Loans Act program instead)
  • Buying shares
  • Assets bought by a holding company

What it covers

  • Term loans: commercial real property, new or used equipment, leasehold improvements, intangible assets, working capital and the registration fee
  • Lines of credit: working capital and the registration fee
  • Buying an existing business, up to the lower of the price or the appraised value of eligible assets

How to apply

  1. Prepare your business proposal.
  2. Take it to a participating bank, credit union or caisse populaire. The program page has a 'Find a lender' map.
  3. The lender reviews it and decides. The government doesn't take applications.
  4. If one lender says no, you can try another.

Good to know

  • This is a loan. You repay it with interest.
  • There's a registration fee of 2% of the loan, which can be added to the loan.
  • Interest caps: prime plus 3% on variable-rate term loans, the lender's residential mortgage rate plus 3% on fixed-rate term loans, and prime plus 5% on lines of credit.
  • The lender's own set-up or renewal fees are extra and can't be financed.

Questions

Do I apply to the government?

No. You apply to a participating lender such as a bank or credit union, and the lender decides. The government doesn't accept or process applications.

Can a sole proprietor use it?

Yes. The official FAQ lists corporations, sole proprietors, partnerships and co-operatives with gross revenue of $10 million or less.

Can it pay for working capital?

Yes. Term loans and lines of credit can both cover working capital, up to the program's limits.

Related programs

Open, closes Jan 19, 2027Mixed

Indigenous Economic Development Fund

Not stated on the main page. The Economic Diversification Grant guide says up to $100,000 per fiscal year per applicant.

Government of Ontario (Ministry of Indigenous Affairs and First Nations Economic Reconciliation)All of Ontario

Open, closes Jan 21, 2027Loan

Southwestern Ontario Development Fund (SWODF)

Up to 15% of eligible project costs. Loans up to $5 million, interest-free during the project period (up to 4 years), with up to 30% (max $500,000) forgivable if targets are met. Grants only in limited cases: up to $500,000 for small rural firms, or $1.5 million for strategic projects.

Government of Ontario (Ministry of Economic Development, Job Creation and Trade)All of Ontario