What is CSBFP - Canadian Small Business Financing Program?
CSBFP is a Government - Sponsored program that provides access to loans to help small businesses start, expand, modernize and improve. The program is administered by the Government of Canada and is designed to promote economic growth and job creation by providing easier access to financing for eligible small businesses.
Who can apply for CSBFP?
The program is available to companies with an annual revenue of up to 10M and is available to businesses across all provinces and territories of Canada.
What can be financed with CSBFP?
- Purchase or improvement of land, buildings and equipment for commercial purposes
- Purchase of new or existing leasehold improvements i.e., renovations to a leased property by a tenant
- Intangible assets and working capital costs
Some examples of what you can use a term loan to finance:
- Commercial vehicles
- Hotel or restaurant equipment
- Costs to buy a franchise
- Computer/ telecommunications equipment or software
Lines of Credit can be used to pay for working capital costs, day-to-day operating expenses of the business.
Requirements/ eligibility for CSBFP?
1. Business must be a for-profit incorporated small business in Canada
- Must have a business plan to demonstrate that is has potential to generate profits
- Must demonstrate it will create/ maintain jobs in Canada
- Must demonstrate sufficient collateral and/ or personal guarantee to secure the loan
- Must have a plan to repay the loan
Loan Amount?
Maximum loan amount is 1.5M
1M term loan with up to 500k designated for equipment and leasehold improvements and 150k working capital costs and an additional 150k LOC which can be used for intangible assets or working capital.
Interest Rates?
Maximum interest rate for a term loan is Prime + 3%, along with a 2% registration fee and 1.25% annual administration fee.
Benefits of CSBFP?
The program provides access to capital that may not be available through traditional sources, with lower interest rates and flexible repayment terms to help businesses manage their cash flow. It can also help improve a business's credit standing and provide access to a network of business advisors, lenders and other resources to help businesses succeed. And SIG is here to help make this happen for you!
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