Canada Small Business Financing Program (CSBFP) Business Plans
Canada Small Business Financing Program (CSBFP) Business Plans
Government-Guaranteed Loans to Grow Your Business
Would a business loan at an exceptional rate help your company flourish?
This program from the federal government helps you get a loan from commercial lenders at a maximum rate of 3% over the bank prime rate (variable) or maximum of 3% above their single family residential mortgage rate for fixed rate loans.
Eligibility
Most Canadian small businesses and start-ups are eligible if their gross annual revenue is $10 million or less. (There is a separate but similar program for the farming industry.) CSBFP loans are administered directly by banks and credit unions and you must meet their individual lending criteria. However the federal government shares the risk with the lender making qualification for the loan easier than for regular loan programs.
What Can I Get a Loan For?
This program primarily targets loans for the purchase of equipment or for improvements to commercial premises. Business equipment may be new or used, everything from commercial kitchen appliances to computer equipment (including software), according to your needs. The loan may be used for purchase or improvement of commercial property, including leasehold improvements. Eligible purchases made within the last six months may also be financed. You cannot use a loan to finance items such as goodwill, working capital, inventories, franchise fees, marketing or advertising costs.
Have Questions? Looking To Get Started?
What Size of Loan is Available?
The absolute maximum loan under this program is $1 million; however, no more than $350,000 can be used for the purchase of equipment or for improvements to leasehold property.
Additional Costs and Terms of the Loan
The borrower must pay a registration fee of 2% of the total loan amount to the lender. This fee can be financed as part of the loan package. It is passed on to the government to go towards the costs of the program. Lenders are required to take security on the assets financed. In addition, the lender may ask for an unsecured personal guarantee. Check with your lender if additional loan setup fees are payable.
The Application Process
This loan program may be backed by the federal government, but your application and all communication will be with your chosen commercial lender. Your current financial institution may be a good place to start, but not all banks have equal enthusiasm for the CSBFP. However, the Royal Bank of Canada (RBC) actively promotes the Canadian Small Business Financing Loan (CSBFL).
In order to secure a loan you must present a business proposal directly to the financial institution of your choice. This proposal will include a business plan that sets out exactly what will be purchased by the loan funds and how much it will cost. In addition, the business plan must demonstrate how the investment will improve profitability, sufficient for the repayment of the loan under the terms agreed upon.
The commercial bank is solely responsible for making the decision to approve a loan. If the loan is approved, the money the borrower receives comes from the bank, not the federal government.
Maximise Your Chances of Success with a CSBFP Business Plan from Bsbcon
The consultants at Bsbcon have a track record of creating successful business plans and applications for clients across a wide range of Canadian industries. We understand the needs of lenders and the important pain points that must be addressed in your Canada Small Business Financing Program (CSBFP) Business Plan.
The bank’s underwriter must understand exactly what you will be spending their money on, how it will improve your businesses profitability, and that you will generate sufficient enough cash flow to repay the loan. Bsbcon will write a tailored CSBFP business plan to represent your company in the most favourable way, covering the asset purchases you intend to make, and how those purchases will support your company’s growth.
Contact us today to confirm your eligibility for the Canada Small Business Financing Program (CSBFP)
Call us at 1(888) 880-1898 or complete the form below.
Let's Get Started!
Government-Guaranteed Loans to Grow Your Business
Would a business loan at an exceptional rate help your company flourish?
This program from the federal government helps you get a loan from commercial lenders at a maximum rate of 3% over the bank prime rate (variable) or maximum of 3% above their single family residential mortgage rate for fixed rate loans.
Eligibility
Most Canadian small businesses and start-ups are eligible if their gross annual revenue is $10 million or less. (There is a separate but similar program for the farming industry.) CSBFP loans are administered directly by banks and credit unions and you must meet their individual lending criteria. However the federal government shares the risk with the lender making qualification for the loan easier than for regular loan programs.
What Can I Get a Loan For?
This program primarily targets loans for the purchase of equipment or for improvements to commercial premises. Business equipment may be new or used, everything from commercial kitchen appliances to computer equipment (including software), according to your needs. The loan may be used for purchase or improvement of commercial property, including leasehold improvements. Eligible purchases made within the last six months may also be financed. You cannot use a loan to finance items such as goodwill, working capital, inventories, franchise fees, marketing or advertising costs.
Have Questions? Looking To Get Started?
What Size of Loan is Available?
The absolute maximum loan under this program is $1 million; however, no more than $350,000 can be used for the purchase of equipment or for improvements to leasehold property.
Additional Costs and Terms of the Loan
The borrower must pay a registration fee of 2% of the total loan amount to the lender. This fee can be financed as part of the loan package. It is passed on to the government to go towards the costs of the program. Lenders are required to take security on the assets financed. In addition, the lender may ask for an unsecured personal guarantee. Check with your lender if additional loan setup fees are payable.
The Application Process
This loan program may be backed by the federal government, but your application and all communication will be with your chosen commercial lender. Your current financial institution may be a good place to start, but not all banks have equal enthusiasm for the CSBFP. However, the Royal Bank of Canada (RBC) actively promotes the Canadian Small Business Financing Loan (CSBFL).
In order to secure a loan you must present a business proposal directly to the financial institution of your choice. This proposal will include a business plan that sets out exactly what will be purchased by the loan funds and how much it will cost. In addition, the business plan must demonstrate how the investment will improve profitability, sufficient for the repayment of the loan under the terms agreed upon.
The commercial bank is solely responsible for making the decision to approve a loan. If the loan is approved, the money the borrower receives comes from the bank, not the federal government.
Maximise Your Chances of Success with a CSBFP Business Plan from Bsbcon
The consultants at Bsbcon have a track record of creating successful business plans and applications for clients across a wide range of Canadian industries. We understand the needs of lenders and the important pain points that must be addressed in your Canada Small Business Financing Program (CSBFP) Business Plan.
The bank’s underwriter must understand exactly what you will be spending their money on, how it will improve your businesses profitability, and that you will generate sufficient enough cash flow to repay the loan. Bsbcon will write a tailored CSBFP business plan to represent your company in the most favourable way, covering the asset purchases you intend to make, and how those purchases will support your company’s growth.
Contact us today to confirm your eligibility for the Canada Small Business Financing Program (CSBFP)
Call us at 1(888) 880-1898 or complete the form below.
