Canada Small Business Financing (CSBF) is a program that is administered by the Small Business Financing Directorate. It’s a government-granted loan meant to provide business owners with the financing they require to start a new business or grow their existing business. This includes: Purchasing, Installing, Renovating, Updating equipment and fixed assets.
For instance you can use this loan to purchase commercial vehicles, hotel or restaurant equipment, computer or telecommunications equipment and software, production equipment or use other eligible costs to buy a franchise.
How can a CSBF loan help my business?
A CSBF loan can help your business in the following ways:
Get up to $1,000,000 to buy land or business property
Get up to $350,000 for improvements made to a leased building and equipment
Assistance without having to use your personal asset as collateral
Apply for a term loan to extend your financing assets (which aren’t covered by normal financing options)
What You Need to Know about Canada Small Business Financing (CSBF) loans
If you are purchasing a premises or property, than at least 50 percent of the total square footage must be used for your business. Your gross fiscal revenues cannot exceed $10,000,000. Even if you have more than one CSBF loan, the maximum value of all combined cannot exceed one million, or $350,000 for leasehold improvements or equipment. Your purchase must also be made within the last six months, in order to get financing.
When submitting your CSBF loan application you also need to include a business plan. You business plan must include your financial statements and/or projections. Depending on the assets you’re financing, loan terms can vary between 7 to 10 years. CSBF loans also require a one-time registration fee of 2 percent. This fee is payable to the government. You may also want to consider getting an insurance plan for your new CSBF loan.
The Canada Small Business Financing Program
The Canadian government is stepping in and now helping small businesses get bank loans through the Canada Small Business Financing Program. They are taking on some of the risk that lenders are faced with through CSBF loans, which is making it more likely for them to approved these loan types. This has resulted in nearly 10 billion dollars in asset-based financing, equivalent to 76,000 loans over the last 10 years.
Are You Eligible?
If you have a small businesses operating for profit in Canada or a new start-up operating in Canada for profit, and your gross annual revenue is 10 million or less, then you are eligible. However, if your business is farming, not-for-profit, charitable or a religious organization then you would not be eligible under the Canada Small Business Financing Program.
How to Apply?
To apply speak to a mortgage broker today to learn more about this program and start the application process. They can:
Discuss and assess your business’s financial needs
Review your business proposal
Connect you with the best financial lender to suit your specific circumstances
Help you apply for the Canada Small Business Financing Program and CSBF loan
AKAL Mortgages specializes in helping small businesses with their financial needs and goals from start to finish. Get the experience you can trust.
When we say Yes! We stand behind our promise ®.