Unlock $1 Million in Growth: The Loan Program Every Small Business Should Know

For many aspiring entrepreneurs, the hardest part of starting a business isn’t the idea, it’s the money. Commercial rent, renovations, equipment, and early-stage costs can pile up quickly, making that dream feel out of reach before it even begins. Starting a business is tough, but not impossible, and if capital is your main barrier, the Canada Small Business Financing Program (CSBFP) might be your secret weapon. By reducing that initial financial pressure, the loan gives you the breathing room to grow your business with confidence.

Why This Government-Backed Loan Could Be a Game-Changer for Your Business?

The CSBFP isn’t your typical business loan. It’s backed by the federal government, which reduces the risk for lenders — and increases your chances of getting approved.

That’s especially valuable if you’re a startup without an extensive credit history or have been turned down before. By sharing up to 85% of the risk, the Government of Canada makes it easier for banks and credit unions to say yes to businesses they might otherwise reject.

Here’s how it works: your financial institution handles the application, approval, and funding process — just like a regular loan. But if something goes wrong, the government steps in to cover most of the losses. That safety net gives lenders the confidence to support more small businesses.

Through the CSBFP, you could qualify for up to $1 million in financing for key business expenses like equipment, renovations, or leasehold improvements. The program is widely available through major banks and credit unions, including TD, RBC, CIBC, Scotiabank, and BMO.

Even better — it comes with competitive interest rates and is specifically designed to support early-stage businesses without requiring you to take on risky, high-interest debt.

What You Can Actually Use It For

The CSBFP is designed to help you build, upgrade, and grow your business with up to $1 million in total financing. Here’s how it breaks down:

Up to $500,000 can be used for:

Leasehold Improvements

Renovate or upgrade a space you lease — such as building a commercial kitchen, redesigning your layout, or installing fixtures.

Purchasing Equipment

Buy the tools and technology your business needs to operate. This can include manufacturing equipment, office computers, delivery vehicles, or point-of-sale systems.

Working Capital & Intangibles (Up to $150,000)

Use part of the loan for essential startup and operating costs, such as:

• Marketing and advertising

• Software or subscriptions

• Website development

• Inventory and supplies

• Rent and utilities

  
  

Or the total $1,000,000 can be used for:

Buying or Improving Commercial Property

This includes purchasing your first storefront or expanding to a new location. 

Note: You can structure the loan in the way that best supports your business, as long as you stay within the limits. For example, you could use $300,000 for equipment and the remaining $700,000 for property. As long as you don’t exceed $1M total, $500K for non-property uses, and $150K for working capital, you have the flexibility to split the funds according to your business needs.

Line of Credit Option (Up to $150,000)

In addition to the term loan, the CSBFP now offers a federally backed line of credit of up to $150,000. This flexible option is designed specifically for working capital needs, such as payroll, short-term expenses, or unexpected costs — and is separate from the $1 million in term financing.

Are You Eligible?

The good news: Most for-profit small businesses in Canada qualify for the CSBFP. To be eligible, your business must meet the following criteria:

• It must be a for-profit business (non-profits are not eligible)

• It must have annual gross revenue under $10 million

• It can be a startup or an existing business

  
  

Franchises, sole proprietors, and incorporated businesses can all apply — as long as they meet the above requirements.

How to Apply

To apply for the CSBFP, you’ll need to go through a participating financial institution — like your bank or credit union. While the program is backed by the federal government, it's your lender (not the government) who reviews and approves your application. They’ll assess your request based on their own lending criteria, alongside the official CSBFP guidelines.

Common Reasons for Rejection

Even though the CSBFP is designed to reduce barriers, applications can still be declined. Here are the most common reasons:

• A weak business proposal, especially without revenue projections

• Asking for ineligible expenses (like personal salary or debt repayment)

• No clear explanation of how the funds will be used

• Poor credit or missing financial documentation

Why It Matters

Starting a business is exciting — but it’s also expensive. Between finding a space, buying equipment, covering renovation costs, and handling day-to-day operations, the upfront investment can be overwhelming. That’s one of the biggest reasons people delay or abandon their business ideas.

That’s exactly why the Canada Small Business Financing Program (CSBFP) exists: to help you get past the funding barrier and take your business from idea to reality.

Need Help Getting Started?

If you’re unsure about eligibility or need support preparing a strong application, SalesGrowth Development Inc. can help. From refining your business plan to identifying the right financing strategy, we’ll work with you to build a funding proposal that gets results.

Ready to take action? Let’s talk.