Hello,

We understand that navigating the world of business financing can be a challenge. That's why the Canada Small Business Financing Program is such a great opportunity for you. This program helps you secure loans up to $1.15 million, making it easier to access the funds you need to grow your business. By sharing the risk with lenders, it opens doors that might otherwise be closed, giving you a better chance at approval.

Why should you apply? The program offers flexible financing options tailored to your needs. You can use up to $1 million for term loans to cover costs like purchasing or improving commercial properties, equipment, or even franchise costs. Plus, there's up to $150,000 available for lines of credit to manage your day-to-day expenses. The interest rates are competitive, with floating rates capped at the lender's prime rate plus 3%, and fixed rates at the lender's mortgage rate plus 3%. This means you get the support you need without breaking the bank.

What's in it for you? Being approved for this program can be a game-changer. It provides the financial backing to expand your operations, invest in new equipment, or simply keep things running smoothly. The application process is straightforward—just discuss your needs with a financial officer at your bank or credit union. With a 2% registration fee that can be financed, this program is designed to be accessible and beneficial for your business. Take advantage of this opportunity to secure the funding you need to thrive.

Loan and Line of Credit: The program offers two types of financing: term loans and lines of credit. Term loans are suitable for larger, one-time expenses, while lines of credit can help manage day-to-day operating costs.

Interest Rates and Repayment Terms:

• Term Loans: Interest rates can be either floating or fixed. The floating rate is capped at the lender’s prime rate plus 3%, and the fixed rate is the lender’s residential mortgage rate for the term of the loan plus 3%.
• Lines of Credit: The interest rate is the lender’s prime rate plus 5%.
• Fees: A 2% registration fee applies to both term loans and lines of credit, calculated on the total loan amount or credit limit, respectively. This fee can be financed as part of the loan.

Eligible and Ineligible Uses:

• Eligible Expenses: Funds can be used for purchasing or improving land or buildings, equipment, leasehold improvements, intangible assets, and covering working capital costs.
• Ineligible Uses: The funds cannot be used for activities not directly related to the business’s operational growth and development, such as personal expenses or non-business related expenditures.

The Canada Small Business Financing Program is here to help your business secure loans more easily. By sharing the risk with lenders, this program opens doors to financial support that might otherwise be out of reach. You can access up to $1.15 million in loans, with specific allocations for different needs. For example, up to $1 million can be used for term loans, which cover costs like buying or improving commercial property, equipment, or even franchise costs. Lines of credit up to $150,000 are available for managing day-to-day expenses.

The interest rates are set by your financial institution and can be either floating or fixed. For floating rates, the maximum is the lender's prime rate plus 3%, while fixed rates are the lender's mortgage rate for the loan term plus 3%. For lines of credit, the rate is the prime rate plus 5%. A 2% registration fee applies, which can be financed as part of the loan.

This program is designed to make financing more accessible for your business, providing the support you need to grow and thrive. Whether it's purchasing new equipment or managing operational costs, the Canada Small Business Financing Program is a valuable resource to help your business succeed.