Summary
The Canada Small Business Financing Program (CSBFP) helps banks and credit unions lend up to $1.15 million to businesses with revenue of $10 million or less, and it set a record of nearly $1.9 billion in loans in 2024-25. Approval still depends on the lender's normal credit review, so a complete, well-organized package matters. This checklist covers eligibility, the limits for each cost category, today's rate caps (7.70% for variable term loans at a 4.70% prime), the 2% registration fee, every document lenders typically request, a package calculator, and the CRA business number (BN) checks that can make or break approval.
For many Canadian start-ups and growing small businesses, the CSBFP is the most practical way to finance a build-out, equipment or a new location. Because the federal government shares part of the lender's risk, banks and credit unions can lend to businesses they might otherwise decline, including brand-new ones.
What surprises many applicants is that the CSBFP isn't applied for directly with the government. You apply to a participating lender, which makes the credit decision using the same care it applies to any loan, then registers the loan with the program. That means the quality of your package, not just your eligibility, decides the outcome.
This checklist sets out everything to prepare before you meet your lender. Ledgerive's business plan services and financial modeling services prepare CSBFP-ready plans, forecasts and sources-and-uses tables for businesses across Canada.
Preparing a CSBFP application?
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1. The CSBFP at a Glance
| Feature | Program rule |
|---|---|
| Eligible businesses | For-profit businesses in Canada with gross annual revenue of $10 million or less |
| Maximum financing | $1.15 million total: up to $1 million in term loans and up to $150,000 in lines of credit |
| Variable-rate term loans | At most the lender's prime rate plus 3% |
| Fixed-rate term loans | At most the lender's single-family residential mortgage rate plus 3% |
| Lines of credit | At most prime plus 5% (9.70% at a 4.70% prime) |
| Registration fee | 2% of the loan amount; can be financed |
| Lender fees | Same as conventional loans; paid directly and cannot be financed |
2. Step 1: Eligibility Checklist
- For-profit business operating in Canada (or about to start operating).
- Gross annual revenue of $10 million or less, including for new businesses' expected revenue.
- Eligible costs: real property, equipment, leasehold improvements, certain intangible assets and working capital, or a line of credit.
- Participating lender: most major banks and many credit unions offer CSBFP loans; ask whether your branch does.
- Creditworthiness: the lender applies its usual standards for credit history, owner equity and repayment capacity.
- Common sectors: in 2024-25, accommodation and food services took 47.8% of loan value and retail 15.0%, but most industries are eligible.
3. Step 2: Map Your Costs to CSBFP Categories
| Category | Limit | Evidence to attach |
|---|---|---|
| Real property | Up to $1,000,000 | Purchase agreement, appraisal |
| Equipment and leasehold improvements | Up to $500,000 combined | Supplier quotes, contractor estimates, signed lease |
| Intangible assets and working capital | Up to $150,000 | Itemized costs (e.g., franchise fees, software, start-up working capital) |
| Line of credit | Up to $150,000 | Working capital forecast |
- Build a sources and uses table: every dollar of the loan maps to a category, with owner equity and other financing shown on the sources side.
- Get written quotes: lenders generally finance against quotes or invoices, not estimates.
- Separate HST: show costs before HST; if you're registered, HST is generally recoverable as input tax credits but still needs cash flow.
- Franchises and acquisitions: franchise fees and other intangibles fall in the $150,000 category; see our franchise purchase planning checklist.
4. Step 3: Document Checklist
| Document | Start-up | Existing business |
|---|---|---|
| Owner identification and personal net worth statement | ✓ | ✓ |
| Incorporation documents or business name registration | ✓ | ✓ |
| CRA business number and program account details | ✓ | ✓ |
| Business plan with sources and uses of funds | ✓ | ✓ |
| Monthly cash flow forecast (12–24 months) and projected statements | ✓ | ✓ |
| Historical financial statements (2–3 years) and interim results | – | ✓ |
| Corporate and personal tax returns or notices of assessment | Personal | ✓ |
| Quotes, invoices, contractor estimates | ✓ | ✓ |
| Signed lease or offer to lease, or purchase agreement | ✓ | If applicable |
| Résumés showing relevant experience | ✓ | Helpful |
5. Interactive CSBFP Package Calculator
Enter your planned costs to check them against CSBFP category limits, see the 2% registration fee and estimate the monthly payment on a variable-rate term loan. Defaults use the 7.70% cap at today's prime.
| Check | Amount | Status |
|---|---|---|
| Revenue limit ($10M) | – | – |
| Equipment and leaseholds ($500K) | – | – |
| Intangibles and working capital ($150K) | – | – |
| Term loans ($1M) | – | – |
| Line of credit ($150K) | – | – |
| Total CSBFP ($1.15M) | – | – |
6. Step 4: Business Plan and Forecast
- Executive summary: the loan amount, purpose, term and repayment source on the first page.
- Sources and uses table: matched to CSBFP categories, including the 2% fee.
- Monthly cash flow forecast: 12 to 24 months, including the loan payment, HST timing and payroll remittances.
- Debt service coverage: show cash flow comfortably covers all debt payments, ideally about 1.25x or more.
- Owner equity: lenders commonly look for 20% to 30% of the project from the owner.
- Local market evidence: customers, competitors and pricing for your location.
Opening a second site? Our location expansion planning checklist explains how to size the ramp-up reserve that CSBFP's working capital and line of credit can help fund.
7. Step 5: CRA Standing and BN Registration
- CRA business number: include your nine-digit business number and exact legal name; they must match incorporation documents and the lease.
- BN registration for program accounts: register for GST/HST before buying fit-out and equipment so you can recover HST, and open payroll before your first employee is paid.
- New corporations: complete BN registration as soon as you incorporate; lenders need it to open accounts and register security.
- No arrears: unpaid HST, payroll or corporate tax under your CRA business number can stop approval, since CRA claims may rank ahead of the lender.
- Books ready: clean, reconciled records speed the review; our bookkeeping services prepare lender-ready statements.
8. Step 6: Submit and Close
| Stage | What happens | Your role |
|---|---|---|
| 1. Pre-meeting | Confirm the lender offers CSBFP | Bring the full package |
| 2. Credit review | Lender assesses plan, credit, equity and security | Answer questions quickly |
| 3. Approval and terms | Offer with rate, term, security and conditions | Review with your accountant and lawyer |
| 4. Registration | Lender registers the loan with the program; 2% fee applies | Sign documents |
| 5. Disbursement | Funds released against invoices or progress | Provide invoices and proof of payment |
Comparing financing options? BDC can complement or replace a CSBFP loan for some businesses; see our BDC application readiness checklist. Growing companies managing several lenders often add our fractional CFO services.
9. Common Package Mistakes
- Costs not mapped to categories, or equipment and leaseholds above the $500,000 limit.
- Estimates instead of quotes for build-out and equipment.
- Forgetting the 2% fee and lender fees in the sources and uses table.
- Forecasts at old rates: model payments at the current 4.70% prime, not last year's rates.
- Mismatched names and numbers across the lease, incorporation documents and CRA records.
- Technology-heavy businesses sometimes need more working capital than the $150,000 categories allow; see our Markham fintech business plan guide for alternatives used by tech companies.
10. Frequently Asked Questions
What documents do I need for a CSBFP loan?
Lenders apply their normal credit process, so expect to provide business and owner identification, incorporation or registration documents, financial statements (or projections for a start-up), a business plan with a cash flow forecast, quotes or invoices for the assets being financed, a lease or purchase agreement, personal net worth and credit information, and confirmation that CRA filings are current.
What can a CSBFP loan be used for?
CSBFP term loans can finance real property, equipment, leasehold improvements, and intangible assets and working capital costs, within program limits. A separate CSBFP line of credit of up to $150,000 can finance working capital. In 2024-25, leasehold improvements accounted for 64.6% of CSBFP loan value.
What is the CSBFP interest rate in 2026?
The program caps rates rather than setting them. Variable-rate term loans can be charged at most the lender's prime rate plus 3%, fixed-rate term loans at most the lender's residential mortgage rate plus 3%, and lines of credit at most prime plus 5%. With major bank prime at 4.70% from October 29, 2026, the variable term loan cap is 7.70%.
Can a start-up get a CSBFP loan?
Yes. Start-ups are eligible and are the program's largest users: in 2024-25, businesses operating for less than a year received 74.1% of CSBFP loan value. Lenders still assess the application as they would a conventional loan, so a strong business plan, owner equity and realistic projections are essential.
Is there a fee for a CSBFP loan?
Yes. A registration fee of 2% of the total loan amount is payable to the government and can be financed as part of the loan. Lenders may also charge the same fees they charge on conventional loans, such as set-up fees, which are paid directly to the lender and cannot be financed.
Summary
A strong CSBFP package confirms eligibility, maps every cost to the right category within its limit, budgets the 2% registration fee, models payments at today's 7.70% variable cap, and attaches quotes, a lease, a business plan and a monthly forecast. Complete BN registration early and keep every CRA business number account current, then submit a consistent, complete file to a participating lender.
Get your CSBFP package lender-ready
Ledgerive prepares CSBFP business plans, forecasts and sources-and-uses tables for start-ups and growing businesses across Canada. Book a free 30-minute call or reach us directly.
Sources: ISED, CSBFP FAQ for small businesses; ISED, CSBFP Overview and Highlights 2024-25; National Bank prime rate release (October 28, 2026). Category limits should be confirmed in the current CSBFP guidelines; calculator results are illustrative.