Canadian Small Business Financing Act Loan Program1
A government program to help existing businesses or start-ups acquire the necessary financing to purchase equipment, leaseholds improvements, and property.
Canadian Small Business Financing Act Loan Program1
A government program to help existing businesses or start-ups acquire the necessary financing to purchase equipment, leaseholds improvements, and property.
Product Benefits
- Registration fee can be included into the term loan
- Helping in the first year with cash crunches by not paying the principal payments for 11 months
Product Eligibility
- You are an existing small business or a start-up
- Your business is located in Canada
- Your business is not a not-for-profit, charitable, or religious organization
- Your gross or projected annual revenue is $10 million or less
- You are not in the farming business
Program overview
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
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 Comprehensive Insurance
- The program does not allow financing for items such as: Inventory, Working capital, Goodwill, Franchise fees, Research & development.
- Any expenses incurred in purchasing otherwise eligible assets 180 days prior to the loan approval date are ineligible for financing
- At least 50% of the real property purchased under the program must be used for business purposes
Canadian Small Business Financing Act Loan Program1
A government program to help existing businesses or start-ups acquire the necessary financing to purchase equipment, leaseholds improvements, and property.
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What is provided here is a summary of the features of the CSBFA Loan Program. For full details speak to a Scotiabank Small Business Advisor.