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Canada Small Business Financing Act Loan Program¹ :

Right for you if:

• You are an existing Small Business or a start-up
• Your gross or projected annual revenue is $10 million or less
• Your business is located in Canada
• You are not in the farming business
• Your business is not a NFP not for profit, a charitable or a religious organization

Overview²

• Loans are guaranteed by the Government of Canada



• Eligible Purchases:

Purchase of leasehold improvements, equipment (including vehicles for business purposes) and real property (including real property improvements) are eligible for financing under the program




• How much Financing is Available?

Up to 90% of eligible purchases which are subject to the following program maximums:

• Up to $350,000 for leasehold improvements and or equipment financing
• Up to $1,000,000 for real property purchase or improvements
• Loan Amortization:
• 10 years for leaseholds & equipment loans
• 20 years for real property loans
• Interest Rate:
• Variable rate: Scotiabank Prime rate + 3%
• Fixed rate: Residential Mortgage Rate + 3%
• Fees:

A loan registration fee equivalent to 2% of the loan amount is payable to the Government of Canada and is payable at the time of the loan advance. This fee may be financed subject to program loan maximums.




• Optional loan insurance



• Important Points to Note:
1. The program does not allow financing for items such as: Inventory, Working capital, Goodwill, Franchise fees, Research & development.
   
2. Any expenses incurred in purchasing otherwise eligible assets 180 days prior to the loan approval date are ineligible for financing
   
3. At least 50% of the real property purchased under the program must be used for business purposes