The Canada Small Business Financing Program helps small businesses obtain financing by sharing eligible lending risk with financial institutions. Participating lenders make the loan decisions.
Who can qualify?
Small businesses and start-ups operating in Canada with gross annual revenues of $10 million or less may be eligible. Farming businesses are excluded. Each lender assesses the application and ability to repay.
What can be financed?
Eligible purposes include commercial real property, equipment, leasehold improvements, intangible assets and working capital. Eligibility depends on the expenditure and the lender’s assessment.
Program financing limits
- Up to $1 million in term loans, plus up to $150,000 in a line of credit.
- Within the $1 million term-loan limit, up to $500,000 may cover purposes other than borrower-owned real property.
- Within that $500,000 limit, up to $150,000 may cover intangible assets and working capital.
These are program limits, subject to lender approval and applicable related-borrower rules. They do not guarantee a loan or establish the financing products available through FlexFunds.
Loan period and costs
Government coverage for new term loans is available for up to 15 years. A longer amortization does not extend that coverage; the remaining balance must become conventional financing after the coverage period.
A 2% registration fee applies and may be financed within the program limits. Interest and permitted lender fees also apply. The lender and borrower negotiate the percentage of eligible costs financed.
Previously purchased assets
Eligible expenditures made within 365 days before loan approval may qualify, subject to program conditions and documentation. The lender can explain the requirements for a specific purchase or business acquisition.
Start with pre-qualification
Tell us about your business and financing needs. Our representative will contact you for pre-qualification and discuss the next steps.
Program overview checked October 9, 2026 against Innovation, Science and Economic Development Canada’s current program guidance. See the official program guidelines for full conditions.