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CSBFP LOAN
Definition
Government-backed loan program where lenders share risk with Canada’s federal guarantee.
Who Provides It
Banks/credit unions registered under CSBFP.
Eligibility
For-profit small businesses in Canada with ≤ $10M annual revenue. Excludes farms.
Loan Amount
Up to $1M (with caps: $500K for equipment/leasehold improvements, $150K for working capital/intangibles).
Risk to Lender
Government guarantees up to 85% of losses.
Collateral / Security
Secured by financed assets; personal guarantees may apply.
Interest Rates
Set by lender but capped (e.g., prime + max spread). Usually favorable vs private.
Fees
2% registration fee to Government of Canada.
Use of Funds
Restricted: must be for eligible business assets/improvements; cannot finance goodwill, inventory, R&D.
Application
Through a participating lender who registers loan with ISED.
Approval Speed
Moderate; must go through bank and government approval.
Best For
Small businesses/startups who may struggle with traditional bank approval.
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