Canada Small Business Financing Program.
Receive up to $1,000,000 in Unsecured Loan Support
The Canada Small Business Financing Program helps Canadian small businesses secure loans by sharing risk with lenders, making it easier to access credit from financial institutions. In this program by Innovation, Science, and Economic Development Canada, interested businesses can apply directly to a Canadian financial institution of their choice.
Most Canadian Small Businesses Qualify
Most Canadian Businesses qualify for the Canada Small Business Financing Program (CSBFP). Restaurants, franchises, nail salons, spas, fitness centres, daycare facilities, private schools, professional services (accounting/insurance), transportation, wellness centres, and chiropractors are some of the small businesses we’ve helped qualify.
CSBFP loans are administered directly by banks and credit unions, and you must meet their lending criteria. However, the federal government shares the risk with the lender, which makes qualifying for the loan easier than with regular loan programs.
* Certain businesses and projects are ineligible for government programs.
Contact our Experienced Team
Our relationship managers are ready to work with you to find the best solution for your unique needs.
Tailored for Small Businesses to Succeed
The Canada Small Business Financing Program primarily targets loans to purchase equipment or improvements to business premises. Business equipment can be new or used, from commercial kitchen equipment to computers (including software), depending on your needs. The loan can be used to purchase or improve a commercial property, including rental property improvements. Eligible purchases made within the last six months can also be financed. However, you cannot use the loan to fund goodwill, working capital, inventory, franchise fees, marketing or advertising costs.
Up To $350,000 For Leasehold Improvement And Equipment
Up To $1,000,000 For Purchase Of Commercial Property
3% - 5.45%* Interest Rate
7-15 Years Amortization
25% Limited Personal Guarantee
Unsecured. No Personal Assets Pledged
The CSBFP is the best available Unsecured Loan on the market
Up to 85% of loan is guaranteed by Government & Eligible for forgiveness
Small business loans are unsecured with limited personal guarantee
Loan payments do not show on your personal credit score
Up to $350,000 for leasehold improvements and / or equipment purchases
Up to $1,000,000 for real estate purchases
Frequently Asked Questions
Why Major Developments Canada (mdc)?
We are knowledgeable, capable business consultants with the necessary experience and understanding to assist you in all parts of your business. We’ll give you a full study of your business model, a financial analysis with precise estimates, supporting research and documentation, and a business plan that will portray your company in the best light possible.
Whad does Major Developments Canada (mdc) do?
Our company is run by a highly skilled team of professionals, many of whom have previously worked in the lending and banking environment. Our hands-on experience in these institutions allows us to navigate the system on your behalf and leverage our considerable knowledge base to support your business needs. We are capable professionals with extensive experience in arranging more than 2,000 Canadian Small Business Financing Loans (SBLs), HASCAP and BELF. Our advisors are qualified and capable professionals who have the necessary experience and expertise to support your business and its financial needs.
Banking institutions may provide basic services to your company, but they lack the skills and creativity needed to undertake a complete and comprehensive examination. We provide consistent and reliable services despite the frequent turnover of individuals inside the bank and the regular realignment and changing of processes. We examine every area of your business model to ensure that we can create an application that portrays your company in the best light to a potential lender. This enhances your chances of getting approved and helps you to get the most money.
What businesses are eligible to apply under the Canada Small Business Financing Program (CSBFP)?
Most start-ups and existing small businesses in Canada with gross revenues of $10 million or less are eligible to apply for loans under this program. Such businesses can be corporations, sole proprietors, partnerships or cooperatives.
Farming businesses are not eligible under this program. The Canadian Agricultural Loans Act program, administered by Agriculture and Agri-Food Canada, is designed to increase the availability of loans for the purpose of farming.
What is eligible for financing under the CSBFP?
Loans can finance the cost of:
- the purchase or improvement of land or buildings used for commercial purposes
- the purchase or improvement of new or used equipment
- the purchase of new or existing leasehold improvements (i.e. renovations to a leased property by a tenant)
- the registration fee
Can I purchase an existing business under the CSBFP?
The purchase of eligible assets of an existing business may qualify for financing under the CSBFP. You may finance the lesser of the cost of purchase and the appraised value of the eligible assets. Please contact your financial institution before committing to appraisal expenses to ensure all other requirements are met.
What is not eligible for financing under the CSBFP?
You cannot use a loan to finance items such as goodwill, working capital, inventories, franchise fees, or assets that a holding company acquires.
This list is not exhaustive. When in doubt, speak with your financial institution.
How much can be financed and what is the maximum loan amount I can access under this program?
It is up to the borrower and lender to negotiate an appropriate amount of financing. The maximum loan amount a borrower can access under this program is $1 million, of which no more than $350,000 can be used to finance the purchase or improvement of equipment and the purchase of leasehold improvements.
What are the costs associated with a CSBFP loan?
The CSBFP registration fee is 2% of the total amount of the loan. The registration fee can be financed as part of the loan.
The interest rate may be variable or fixed. For a variable rate, the maximum chargeable is the lender’s prime lending rate plus 3%. For a fixed rate, the maximum chargeable is the lenders’ single family residential mortgage rate plus 3%.
Lenders may charge the same fees (e.g. set-up and renewal fees), that they charge for a conventional loan of the same amount. These fees are paid directly to the lender and cannot be financed under this program.