About the Program
businesses are an important part of Canada’s economy, but they face unique challenges when they look for financing. The Canada Small Business Financing Program helps you with your financing needs. Under the program, the Government of Canada makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
The program’s main objectives are:
- to help new businesses get started and established firms make improvements and expand
- to improve access to loans that would not otherwise be available to small businesses
- to stimulate economic growth and create jobs for Canadians
- On average, the program helps small businesses access 10,000 loans worth more than $1 billion each year.
Small businesses operating for profit in Canada, with gross annual revenues of $5 million or less.
How much financing is available?
Up to a maximum of $500,000 for any one business, of which no more than $350,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment.
What can loans be used for under this program?
Loans can be used for financing up to 90% of the cost of:
- purchasing or improving land, real property or immovables
- purchasing leasehold improvements or improving leased property
- purchasing or improving new or used equipment
- buildings and land
- commercial vehicles
- hotel or restaurant equipment
- computer or telecommunications equipment and software
- production equipment
- goodwill
- working capital
- inventories
- franchise fees
- research and development
Lenders are required to take security in the assets financed. Lenders also have the option to take an additional unsecured personal guarantee, which cannot exceed 25% of the total amount loaned.
For more information, please contact vijay financial depot.
