Canada Small Business Financing Loan (CSBFL Loans)
A CSBFL Loan is a kind of business financing available to companies wanting to launch, grow, or buy another company. Equipment, chattels, and leasehold improvements are covered by CSBFL loans up to a maximum of 350,000 and up to 90% of the invoice. Due to the Federal Government’s insurance of the CSBFL Loan, there is a 2% insurance premium that must be paid to the government. In the event that your company fails, the federal government will guarantee 75% of the loan amount to the bank, leaving you just responsible for 25% of the loan amount.
Who can qualify for the Canada Small Business Financing Loan
The majority of newly established for-profit, nonprofit, and small businesses in Canada that have gross earnings of $10 million or less are qualified to apply for loans through this program.
Industries That Qualify for Business Loans in Ontario
Actually, practically every sector in Ontario may be approved for a company loan, including but not limited to:
- Builders and construction businesses
- Medical supply warehouses, and distributors
- Medical facilities, clinics, and practices
- Hotels, Motels, and B&B locations
- Vacation rental locations
- Restaurants, bars, bakeries, and coffee shops
- Farm equipment and supply retailers
- Vegetable, fruit, grain, and livestock farming
- Town Car, limousine, shuttle, and other transportation-related services
- Plumbing, electrician, and home/industrial repair businesses of any kind
- Pet stores, pet groomers, and other animal-related businesses
- Wellness spas
- Hair, nail, and beauty salons
Frequently asked questions
How much may I request as a small company loan from Canada?
A Small Business Loan has a $100,000 maximum request amount. The amount granted will depend on both your request and the prior success of your business.
How long is the CSBFL payback period?
This loan is repaid over a 60-month period. The loan's principle payments are deferred for the first 6 months, so just the interest component is payable during this time. The loan is paid back over 60 months, beginning with the seventh.
Can I submit a loan application for more than $100,000?
No, The CSBFL loan is capped at $100,000. However we provide many options for business financing. Contact us to find out which one is ideal for your business.
Is it a guarantee that I will be granted this loan?
No, in order to qualify for a loan, applicants must first satisfy the CSBFL eligibility requirements. Before receiving a loan offer, the submitted loan request must pass CSBFL's due diligence examination as well.
I've previously had a CSBFL loan rejected. How long must pass before I submit a new loan application again?
Unfortunately, we are unable to provide a specific estimate of the amount of time needed before filing a new application but typically about a year.
Can someone with bad credit apply for a Canada Small Business Financing Loan?
In Ontario, personal credit scores of at least 650, if not higher, are often required by banks and other conventional lending institutions. On the other hand, alternative lenders have more lenient lending requirements. Instead than looking at your credit score, they often base their approval on the monthly sales of your company.
