Canada Small Business Financing Program (CSBF)
Financing is often the sole catalyst responsible for whether an idea remains a dream or turns into a prosperous business. It is critical to both startups and growing businesses, and it is number one on the list when you ask entrepreneurs about their business needs.
Enter the CSBF – Canada Small Business Financing Program. The program has been around, in one form or another, since 1961, when it was called the Small Business Loans program. This program is the Canadian Government’s answer to the challenges faced by small business owners nationwide who struggle with a shortage of financial resources.
The CSBF – Canada Small Business Financing Program aims to provide entrepreneurs with financing to start, expand, modernize, or improve their businesses through government guaranteed loans of up to $1 million.
GROW YOUR BUSINESS WITH GRANTS & LOANS
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What’s the Difference Between a Loan and a Government Guaranteed Loan?
When asked which they would prefer between a grant and a loan, the vast majority will say a grant, and for good reason. Grants are essentially free money that does not need to be reimbursed.
However, the savvy entrepreneur might think otherwise. Due to their nature, grants are limited, require you to meet more criteria, and generally involve more work in order to be approved. On the other hand, a government guaranteed loan offers business owners a reasonable middle-ground alternative to the average grant or loan.
Traditional Loan vs. Government Guaranteed Loan
Unlike a traditional loan, a government guaranteed loan is backed by the government. This means that in the unfortunate event your business fails, the government pays up to 85% of the eligible losses incurred, leaving you responsible for only 15%.
This structure makes borrowing more manageable and less intimidating. Even more convenient is the process. You can apply for the program directly at your local bank branch and avoid the lengthy application and approval process associated with most government financing. In some cases, you could apply today and have the money tomorrow.
Get in touch with one of our experts at Canada Startups to access the CSBF Canada Small Business Financing Program fact sheet and to learn more about the program and how to apply for your small business.