Is a lack of capital holding back your Ontario small business?
For entrepreneurs across the province—from the bustling commercial hubs of Toronto and Vaughan to the expanding markets of Ottawa and Mississauga—securing business financing can be the biggest hurdle to growth. You have a vision, but traditional bank loans often require excessive collateral or come with unfavourable terms.
The good news? The federal government offers a powerful solution: the Canada Small Business Financing Program (CSBFP), which delivers loans often referred to as the CSBFL.
As an independent financial sales representative serving all of Ontario, my goal at BizFinance Ontario is to cut through the complexity. This guide details exactly how the CSBFL works and how it can provide the crucial funding your business needs for equipment, real estate, and growth.
As an independent financial sales representative serving all of Ontario, my goal at BizFinance Ontario is to cut through the complexity. This guide details exactly how the CSBFL works and how it can provide the crucial funding your business needs for equipment, real estate, and growth.
What is the CSBFL and How Does It Benefit Ontario Businesses?
The Canada Small Business Financing Program (CSBFP) is a government initiative designed to increase the availability of financing for small businesses by reducing the risk for lenders (banks, credit unions).
The Government Guarantee
The Government of Canada guarantees 85% of the lender’s losses in the event of default. This shared risk encourages financial institutions to approve loans for smaller businesses, startups, and those with less collateral than conventional financing.
Two Types of CSBFL Financing Available :
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- Term Loan: For major capital investments and long-term assets.
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- Line of Credit (LOC): Specifically for working capital needs (day-to-day operating expenses).
Who is Eligible for a CSBFL in Ontario?
The program is designed to stimulate economic activity across the province.
Key Eligibility Criteria:
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- For-Profit Business: Must be operating or starting a for-profit business in Canada.
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- Revenue Limit (LOC): Gross annual revenue must be $10 million or less.
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- Business Structure: Sole proprietorships, partnerships, and corporations.
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- Exclusions: Businesses primarily engaged in farming are not eligible.
Whether you’re opening a café in Vaughan, buying vehicles in London, or expanding tech operations in Waterloo — the CSBFL can help.
What Can You Finance with a CSBFL Loan?
The maximum total financing available per borrower is $1.15 million, split between term loans and a line of credit.
1. Term Loans: Up to $1 Million
| Eligible Asset Class | Maximum Limit | Max Amortization |
|---|---|---|
| Real Property | Up to $1,000,000 | Up to 20 years |
| Equipment & Leasehold Improvements | Up to $500,000 | Up to 15 years |
| Intangible Assets & Working Capital | Up to $150,000 | Up to 15 years |
Examples of Eligible Purchases:
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- Commercial real estate
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- Vehicles & equipment
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- Leasehold improvements
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- Intangible assets (software, franchise fees, IP)
2. Line of Credit: Up to $150,000
Used for eligible working capital costs (day-to-day expenses).
Competitive Rates and Terms
Interest rates are capped:
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- Variable: Prime + 3%
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- Fixed: Lender’s mortgage rate + 3%
One-time fee: 2% registration fee (can be financed).
Your CSBFL Application: The BizFinance Ontario Advantage
Applications go through banks/credit unions, not the government.
How BizFinance Ontario Helps:
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- Eligibility Assessment
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- Application Structuring(business plan, financials, quotes, statements)
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- Lender Connection
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- Full guidance through the process
Don’t leave crucial government-backed financing to chance.
Ready to Move Forward?
Whether you’re:
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- Buying equipment in Windsor
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- Expanding a facility in Sudbury
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- Or starting a new venture in Vaughan