Securing financing can be a challenge for small businesses, but help is available. The Canada Small Business Financing Program (CSBFP) seeks to increase loan availability, streamline administration and extend financing that would otherwise be unavailable to small-and medium-size enterprises.
Under the CSBFP, financial institutions and the government share risk in order to help small businesses each secure up to $500,000 in financing for capital spending. The loans are available to non-farm businesses with annual gross or projected revenues of less than $5 million. Eligible businesses can be corporations, sole proprietorships or partnerships.
The program can help you grow your business, and loans can be used to cover up to 90% of these costs:
• Purchasing or improving land or property
• Purchasing leasehold improvements or improving leased property
• Purchasing new equipment or improving used equipment
While the loans are government backed, small businesses have to apply for a CSBFP loan directly through their own financial institution – not through the government.
Banks use the same due diligence and procedure in making a CSBFP loan as they do for a non-CSBFP loan. This means that your application and supporting documents must be in order (e.g. your business plan, cash-flow projections and recent tax returns.) Your Small Business advisor can help you prepare for your application.
For answers to frequently asked questions about the CSFBP you can visit the Industry Canada website.