Canada Small Business Financing (CSBF) Loans
Who knew having a small business could have so many benefits. By having an annual gross revenue below $10,000,000 you can have acess to $1,000,000 from the Federal Government.
How? By getting to understand CSBF, a loan designed just for you.
What it Provides?
CSBF loan’s main purpose is to provide financing for the following purposes:
- • To buy or renovate land or buildings, 50% of which should be used for business purposes
- • To buy or improve leased properties,
- • To buy new or used equipment for your business
- • To purchase a Vehicle, and even
- • To buy Furniture or any fixture
Not to forget it also covers the Registration Fee that is applicable on your loan. All of by which it aims at promoting economic development and increasing employment.
Check Your Eligibility
- • Current fiscal year gross revenue must not exceed $10,000,000
- • If you are a start-up established in Canada or a for-profit organization
- • CSBF is not available for Farming Businesses
Prepare the Documents Required
- • Applications are to be presented with a business plan which includes future Business projections
- • Invoice of purchase and payment must be submitted, and it must contain a detailed description of the asset
- • The application must include your Financial Statements for the previous five fiscal years
How it Operates?
The loan is provided to you by the lender, who shares the risk of any default of payment with the Government. The lenders, any local bank or a credit union, makes the credit decisions, registers loans, deposit any administration fee and realize all securities in case of default in repayment of the CSBF loan. The lender according to his own loan eligibility approves a loan. Thus there are chances of not meeting any internal credit criteria leading the bank to reject the loan. Whereas, the government’s role is to design the program and spread awareness.
In case of any default, The government reviews and pays the lender’s claims and ensures compliance. The lender has the right to sell all the collateral assets. The government shall bear 85% of any outstanding amount left after the sale of assets and other properties, and the lender would claim a loss of the 15%.
Eligible purchases which have been within six months before the application can also be financed. Brace yourselves for the following costs that would apply.
Registration Fee: 2% of the loan amount
Interest Rate: 3% above the prime lending rate
Lender Fee: An amount that is charged for any conventional loan
If you have any questions, please feel free to contact me any time, I’m here to help!