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Canada Small Business Financing Program (CSBFP): 2026 Guide for Business Owners
Quick answer: The Canada Small Business Financing Program lets banks and credit unions lend up to $1.15 million to a small business with revenue under $10 million: up to $1 million in term loans, including real property for up to 15 years, plus a $150,000 line of credit. It costs a 2% registration fee, and rates are capped at prime plus 3%. Paired with a commercial mortgage, it can cut the cash you need to buy your business premises.
Call Asim now: 604‑591‑3590Compare CSBFP with a mortgage
What would a CSBFP loan cost?
Enter the term loan and the rate spread a lender quotes. The program caps a floating term loan at prime plus 3%, including the 1.25% administration fee, and charges a one time 2% registration fee.
Monthly payment
$8,446
Uses a prime rate of 4.70%, the big bank prime after the Bank of Canada's October 28, 2026 increase. Lenders set the actual rate within the cap.
CSBFP limits and terms at a glance
| Feature | Rule |
|---|---|
| Who qualifies | Canadian small businesses and start ups with gross revenue of $10 million or less |
| Total per borrower | $1,150,000 |
| Term loans | Up to $1,000,000, of which equipment, leasehold improvements, intangibles and working capital are up to $500,000 |
| Line of credit | Up to $150,000 for working capital |
| Term | Up to 15 years for real property, up to 10 years for other term loans |
| Registration fee | 2% of the loan, or of the authorized line of credit |
| Rate cap | Prime plus 3% on floating term loans, prime plus 5% on lines of credit, including the 1.25% administration fee |
| Personal guarantee | Limited to 25% of the original loan |
Source: Innovation, Science and Economic Development Canada, Canada Small Business Financing Program guidelines. Confirm current terms with a participating lender.
How do you use the CSBFP to buy your business premises?
A common structure for an owner occupied building is a first mortgage of about 65% of the price from a commercial lender, with a CSBFP term loan behind it for part of the rest. On a $1.8 million building, that can bring the cash needed from about $450,000 with a 75% mortgage down to the difference between the project cost and both loans, plus closing costs. Compare the options with the calculator on the BDC commercial real estate loan page, and see how the first mortgage is sized with the commercial mortgage calculator.
CSBFP, BDC or a commercial mortgage?
- CSBFP: up to $1.15 million through your own bank or credit union, government backed, with capped rates and limited personal guarantees.
- BDC: a federal development bank that can finance up to 100% of an owner occupied project, for larger amounts and longer amortizations.
- Commercial mortgage: for any commercial property, including investment property, usually 65% to 75% of value. See commercial mortgages.
Asim Ali arranges the commercial mortgage and helps you structure it with a CSBFP or BDC loan so the pieces fit. For equipment and working capital, see business financing in BC and equipment financing.
Talk to Asim about your mortgage
Call 604‑591‑3590 now, or send your details and Asim will reply within one business day.
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Frequently asked questions
What is the Canada Small Business Financing Program?
A federal program that shares the risk of small business loans with banks and credit unions, so they can lend to businesses that might not qualify otherwise. The government does not lend the money; your financial institution does, under the program's rules.
How much can I borrow under the CSBFP?
Up to $1.15 million per borrower: up to $1 million in term loans and a line of credit of up to $150,000. Within the term loans, equipment, leasehold improvements, intangible assets and working capital are limited to $500,000 combined; the rest can be real property.
Can I use a CSBFP loan to buy a commercial building?
Yes. Real property for your own business is an eligible use, with a term of up to 15 years. Many owners pair a CSBFP term loan with a first mortgage to reduce the cash needed to buy their premises.
What does a CSBFP loan cost?
A one time registration fee of 2% of the loan, which can be financed, and an interest rate capped at prime plus 3% for floating term loans, or prime plus 5% for lines of credit. Both caps include a 1.25% yearly administration fee the lender pays to the government.
Who qualifies for the CSBFP?
Small businesses and start ups in Canada with yearly gross revenue of $10 million or less. Farming businesses, charities and religious organizations are not eligible. Personal guarantees are limited to 25% of the original loan amount.
Is a CSBFP loan a grant?
No. It is a loan that must be repaid with interest. The government guarantee protects the lender, not the borrower.
Want a lender's view of your numbers? Book an appointment with Asim Ali, ranked #4 in the CMP Top 75 Mortgage Brokers in Canada for 2026, or call 604‑591‑3590.