Canada Small Business Financing Program (CSBFP)

Government-backed financing up to $1.15M to buy or improve business assets in Canada.

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What is the CSBFP?

The Canada Small Business Financing Program is a federal risk-share program administered by ISED: participating banks/credit unions lend; the Government of Canada covers a portion of eligible losses, which helps viable small businesses access credit they might otherwise miss. (The guarantee protects the lender, not the borrower.) Program parameters and caps were modernized in recent years.

What can I use funds for?

Term loan (capital assets): buy/improve commercial real estate, buy/improve new/used equipment, leasehold improvements, and a limited envelope for intangibles and working capital.

Line of credit (operating):working capital for day-to-day expenses (with specific registration/renewal rules).
Common in-scope examples
  • Property purchase or build-out for an owner-occupied location
  • Production/restaurant/vehicle/electronics equipment purchases or upgrades
  • Renovations/fit-outs to leased space (leaseholds)
  • A capped portion for software, licenses, and other intangibles, plus launch or operating working capital (see limits below).

Benefits (vs. a conventional bank loan)

  • Access: Federal risk-sharing lets banks consider files they’d otherwise decline.
  • Price ceilings: Rate and fee caps are set by program policy, improving predictability.
  • Longer terms: Asset-aligned maturities (up to 15 years for real property).

How much can I borrow?

Total per borrower: up to $1.15M

- Term loans: up to $1,000,000, of which:
     - up to $500,000 may be for equipment and leasehold improvements, and
     - up to $150,000 (within the above) may be used combined for intangibles + working         capital

- Line of credit: up to $150,000 (working capital)

These amounts reflect the current program limits.

How much can I borrow?

At Mehmi Financial Group, we specialize in fast, flexible equipment loans for Canadian businesses. Whether you're financing trucks, trailers, excavators, medical devices, or other commercial equipment — we help you secure the capital you need without giving up ownership.

Our team understands the realities of growing a business, especially when banks say no. That’s why we offer equipment loan solutions for new, used, and even private-sale equipment — with approval options for startups, low credit, and owner-operators.

We’re trusted by contractors, fleet managers, manufacturers, and small business owners across Canada because we make equipment financing simple, affordable, and tailored to your cash flow.
  • Support for new, used, and private-sale equipment
  • Access to 100+ specialized equipment lenders
  • We consider all credit types, including startups and low scores
  • Transparent terms — no hidden fees or surprises
Finance Smarter — Equipment Loans Made Easy

Flexible equipment loan options that help you own your gear — without draining your cash. Whether you're buying new, used, or private-sale equipment, we help you get approved fast and keep your business moving.
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Borrow up to $5,000,000

Used & private-sale gear approved

Terms up to 72 months

Funds within 48 hours
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Get StartedBrowse Equipment
Heavy equipment loan approval Canada

Sectors we routinely support

We use the Canada Small Business Financing Program (CSBFP) to help for-profit Canadian businesses access bank financing for eligible assets. If you operate (or plan to operate) in Canada with $10M or less in annual revenue, you may qualify. Startups are eligible. Final approval and structure are set by the participating bank or credit union.
  • Construction & Trades: vehicles, tools, site equipment, yard/warehouse upgrades
  • Retail & E-commerce: store build-outs, POS/IT, fixtures, signage
  • Restaurants & QSR: kitchen equipment, leasehold improvements, ventilation, refrigeration
  • Hospitality & Tourism: guest-area renovations, furniture/fixtures, property acquisitions
  • Manufacturing & Fabrication: production machinery, compressors, CNC, plant improvements
  • Healthcare, Dental & Wellness: imaging chairs, sterilization units, clinic fit-outs
  • Logistics & Auto Service: service equipment, lifts, diagnostic tools, racking
  • Professional & Technology Services: office build-outs, servers/networking, software (within program caps)
  • Personal Care & Fitness: salon/spa fit-outs, cardio/strength equipment, change-room upgrades

Who Qualifies for an Equipment Loan?

You’re likely a strong match if:

  • Your business is for-profit, operates (or will operate) in Canada, and has ≤ $10M in annual or forecast revenue
  • You’re financing eligible assets (commercial real estate, equipment, or leasehold improvements) — with limited room for intangibles/working capital
  • You can show viable cash flow and a clear plan for how the assets will generate revenue or savings

Startups can qualify under CSBFP. Even with thinner credit or shorter history, strong projections, security on the assets, or an unsecured personal guarantee may help approval.

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Documents Required

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Articles of Incorporation
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Business Plan
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Credit Application + Personal Net Worth Statement
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Financial Projections

3 Steps. No Surprises.

The Mehmi Financial Group experience is simple, quick, and aligned with CSBFP rules.
1

Confirm Eligibility & Assets

Make sure your business fits CSBFP basics (for-profit in Canada, ≤ $10M revenue) and that your use of funds is eligible (property, equipment, or leaseholds; limited working capital/intangibles).
Browse Used Equipment
2

Send Us Your CSBFP Package

We build a bank-ready file: quotes/appraisals, projections, bank statements, lease/LOI, and ownership details. Then we place it with the right participating bank or credit union.
3

Bank Decision & Funding

Your lender reviews, registers the loan (2% program fee may be financed), and finalizes terms. Funding follows document completion.

CSBFP vs Conventional Bank Loan vs Business Line of Credit: What’s Right for Your Business?

Feature CSBFP Term Loan Conventional Bank Term Loan Business Line of Credit
Use of Funds Eligible assets: commercial real estate, equipment, leasehold improvements; limited intangibles & working capital Broader use; lender policy decides (may include acquisitions, refinance, larger projects) Day-to-day working capital: inventory, payroll, supplier payments; revolving access
Maximum Amount Up to $1,000,000 (within $1.15M program total); up to $500k for equipment/leaseholds; up to $150k combined for intangibles + working capital Case-by-case (often driven by cash flow, collateral, and leverage limits) Typically based on AR/inventory/cash-flow — CSBFP LOCs capped at $150,000
Pricing (Caps / Typical) Max Prime + 3% (variable) or posted residential mortgage + 3% (fixed); 2% registration fee (can be financed) Market-priced; may be lower/higher than CSBFP depending on risk and collateral Interest on amounts drawn; CSBFP LOC max Prime + 5%; annual/renewal fees may apply
Term & Amortization Up to 10 yrs (equipment/leaseholds); up to 15 yrs (real property) Negotiated; can match asset life or shorter, often 2–10+ yrs Revolving; interest-only on draws; reviewed/renewed periodically (e.g., annually or at 5-yr marks)
Security & Guarantee Security on financed assets; lender may take an unsecured personal guarantee; federal guarantee covers a portion of lender loss (not borrower) Security and personal guarantees common; no government loss-share General security agreement and/or specific collateral; personal guarantees common
Upfront Costs 2% program registration fee; standard legal/appraisal/filing costs Bank fees, legal, appraisals as applicable Setup/annual fees; interest only when drawn
Approval Focus Eligibility rules, asset quotes/appraisals, cash-flow coverage, security; lender underwriting + program compliance Debt-service capacity, collateral coverage, borrower profile, track record Liquidity, seasonality, AR/inventory quality, covenant history
Best For Asset purchases/improvements where program rules fit; startups and growing SMEs needing structured terms Established firms with strong financials seeking flexibility outside program caps Ongoing working-capital swings, timing gaps, quick opportunities

Notes: CSBFP pricing and eligibility are set by federal program rules; banks make final credit decisions. Fees/terms vary by lender and province. Always consult your advisor for tax treatment.

FAQ: Got Questions? We’re Straightforward.

Can I get a CSBFP loan with limited credit or as a startup?

Yes—startups and newer businesses can be eligible. Approval is still based on viability: a solid plan and projections, quotes/appraisals for the assets, cash-flow support, and security on financed assets. Lenders may also ask for an unsecured personal guarantee.

What can I finance with CSBFP?

Eligible assets include commercial real estate you’ll occupy, new or used equipment, and leasehold improvements. Within caps, you can also finance intangibles and working capital. (Goodwill, share purchases, and purely financial assets are typically out of scope.)

How much can I borrow?

Up to $1.15M total per borrower: $1,000,000 in term loans (of which up to $500,000 for equipment/leaseholds, and up to $150,000 combined for intangibles + working capital) plus a line of credit up to $150,000 for working capital.

What rates should I expect?

CSBFP caps lender pricing at Prime + 3% (variable) or posted residential mortgage rate + 3% (fixed) for term loans, and Prime + 5% for CSBFP lines of credit. Actual rates depend on the lender, security, and file strength.

How long does approval and funding take?

Timelines vary by lender and the completeness of your package. With quotes/appraisals, projections, and bank statements organized, decisions can move quickly. We assemble a bank-ready file to reduce back-and-forth.

Will I need a down payment or collateral?

Expect normal bank practices: security on the financed assets and, often, an unsecured personal guarantee. Down payment or additional support may be required depending on asset type, valuation, and cash flow.

Is there a government guarantee—does that protect me?

The federal guarantee covers a portion of a lender’s eligible loss (up to 85%) after it realizes security. It does not forgive your obligation; you remain responsible for repayment.

What terms are available?

Up to 10 years for equipment and leasehold improvements; up to 15 years for owner-occupied real property. CSBFP lines of credit are typically registered for 5 years and may be renewed by the lender.

Can I use CSBFP to buy an existing business?

Yes—for the eligible assets being purchased (e.g., equipment, real property, leaseholds), up to the lesser of purchase price or appraised value. Goodwill and shares are generally out of scope.

What documents do I need to apply?

Articles of Incorporation or registration, photo ID for owners/guarantors, business plan with 12–36-month projections (or financial statements if operating), recent bank statements, quotes/purchase agreements/appraisals, lease or offer to lease, and ownership/net-worth details.

What happens if I default?

The lender may enforce security and pursue guarantors; your credit can be affected. The federal guarantee compensates the lender—it does not eliminate your debt.

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Across Canada

24–48 hr approval
All credit types welcome
Serving Canada nationwide

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Ready to purchase commercial property, expand your operations, or upgrade your equipment through the Canada Small Business Financing Program (CSBFP)?
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