Canada Small Business Financing Program
Get up to $1.15 million in financing for equipment, real estate, or working capital through your bank. This is a repayable loan where the government shares the risk to help you secure funding. Verified against the official source on July 2, 2026.
How we verify funding records →
“The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.”
Before you spend a dollar
You must secure approval from your lender before spending any money, as funds are disbursed by the financial institution upon approval.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Not sure if you qualify?
Get a free, 2-minute read on whether this program fits your business. No obligation.
Check your fit →Is this for you?
- You run a Canadian small business or start-up with annual revenues of $10 million or less.
- You need funds for tangible assets like vehicles or equipment, or a line of credit for working capital.
- You can get a loan from a participating bank or credit union, even if standard commercial loans are harder to secure.
Probably not the right fit if
- You run a farming business, as agriculture is excluded from this program.
- You are looking for a grant or free money, since this is a loan you must repay with interest.
- You want to apply directly to the government, as you must apply through a financial institution.
How much you'd realistically get
Up to $1.15 million total per borrower, split between term loans and lines of credit.
What may be supported
- Purchase or improvement of commercial land or buildings.
- Purchase or improvement of new or used equipment, including commercial vehicles, restaurant equipment, and production machinery.
- Leasehold improvements, such as renovations to a leased property.
- Working capital costs and intangible assets, up to the specified limits.
- Costs to buy a franchise.
What's excluded or restricted
- Farming businesses are not eligible (a separate Canadian Agricultural Loans Act Program exists for them)
How applying works
Effort: moderateYou must prepare a business proposal and financials for your lender, who will conduct a credit review before disbursing funds.
- 01Identify a participating financial institution (bank, caisse populaire, or credit union) using the 'Find a lender near you' tool on the official page.
- 02Prepare your business proposal, including financial statements and details of the assets or working capital you need.
- 03Discuss your needs with a financial officer at the institution, who will review your proposal and creditworthiness.
- 04If approved, the lender will disburse the funds and register the loan with ISED, applying the 2% registration fee and agreed interest rate.
Who to ask: Via your financial institution; program contact through the Small Business Financing Directorate (ISED) 'contact us' page. Specific phone/email not stated on the page.
Documents commonly required
- Business proposal outlining the purpose of the loan and how it will be used.
- Financial statements (confirm specific requirements with your lender).
- Details of the assets to be purchased or improved (quotes, invoices, or lease agreements).
- Personal and business credit information (confirm with your lender).
How BBN Labs helps
- BBN designs your storefront and vehicle wraps, coordinating with qualified partners to use the loan for a physical upgrade that draws more eyes to your business.
- BBN builds your website and online store with the financing, creating a 24/7 sales channel that captures customers beyond your physical location.
- BBN sets up your POS and automation systems using the loan, streamlining checkout and inventory so you save time and reduce errors every day.
- BBN guides you through the application and deadlines so you don't lose the funding.
What to know before you count on it
- You pay a 2% registration fee on the loan amount, which may be financed into the loan.
- Interest rates are set by your lender but capped at prime plus 3% for term loans or prime plus 5% for lines of credit.
- The lender will likely require security on the assets financed and may ask for an unsecured personal guarantee.
- The lender decides whether to approve your loan based on their own credit and viability review, not the government.
What are your odds?
Approval depends on your lender's assessment of your ability to service the debt and the viability of your business plan, not on a competitive grant selection process.
Frequently asked questions
Is this money taxable?
No, because it is a loan, not income. You repay the principal plus interest and fees.
Can I use this for working capital?
Yes, up to $150,000 of the term loan can be used for intangible assets and working capital costs, or you can take a line of credit up to $150,000 for day-to-day expenses.
Who sets the interest rate?
Your lender sets the rate, but it cannot exceed the federal caps: prime plus 3% for term loans or prime plus 5% for lines of credit.
Do I apply to the government?
No, you apply directly to your bank, caisse populaire, or credit union. They register the loan with ISED after approval.
What you can combine it with
This financing can often be combined with other grants or tax credits for the same project, but confirm with your lender how the loan structure interacts with other funding sources.
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Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Record last updated July 3, 2026; last verified July 2, 2026 against the official source. Source: official program page.