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What is the CSBFP?
The CSBFP is a government program that helps small businesses access loans they might not otherwise qualify for. The government shares the risk with the lender, so banks, credit unions and caisses populaires are more willing to say yes — especially to startups.
Key features
- Loan amounts up to $1.15M
- Interest around prime + 3%
- Open to businesses with gross annual revenue of $10M or less
- Startups receive roughly 74% of program lending
- It’s a loan, not a grant — it must be repaid
Who qualifies
To be eligible, your business must:
- Operate in Canada with a Canadian place of business and assets
- Have gross annual revenue of $10M or less (projected for new businesses)
- Offer goods or services to the public
- Be a sole proprietorship, partnership, corporation or cooperative
Both for-profit and not-for-profit businesses across most industries can apply. Farming operations are the main exception (they have a separate program).
What the loan can be used for
CSBFP financing generally covers the purchase or improvement of equipment, property and leasehold improvements. It’s designed for asset purchases rather than day-to-day working capital, so plan your request around eligible costs.
How to apply
- Prepare a business proposal and financial details.
- Visit any participating bank, credit union or caisse populaire.
- Meet with a financial officer who reviews your proposal.
- The lender makes the lending decision (not the government directly).
- If approved, finalize terms and receive funding.
Approval timelines vary, typically from a few weeks to about a month depending on the lender and complexity.
Pros and cons
Pros: easier approval for startups, large limits, reasonable rates. Cons: it’s restricted to certain asset types, requires a registration fee, and still demands solid personal credit and a credible plan.
Frequently asked questions
Is the CSBFP a grant? No — it’s a loan that must be repaid, just with government-backed risk sharing.
Can a startup use it? Yes, and most CSBFP loans go to businesses under one year old.
Where do I apply? Through any participating Canadian financial institution, not a government office.
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Disclaimer: LoanWave.ca is an affiliate / comparison website. We are not a lender and do not provide loans. We may earn a commission from partners. Program details are set by the Government of Canada and participating lenders. Informational content only, not financial advice.