The Government of Canada has implemented various financial instruments to support Small businesses. Canada Small Business Financing Program (CSBFP) is one of the financial programs tailored for small businesses. The Canada Small Business Financing Act (CSBF Act) aims to increase the availability of financing to establish, expand, modernize and improve Canadian small businesses. Lenders should refer to the Act and Regulations, as they constitute the legal authority for the Canada Small Business Financing (CSBF) program. They contain the procedures and conditions for making and administering CSBF loans and for submitting claims for loan losses.
These Guidelines are divided into four sections:
- Eligibility criteria used in making a CSBF loan Registration
- Registration, administration and reporting of CSBF loans
- Realization on CSBF loans and submission of claims
- Annexes and Forms
Where a situation is not clearly covered by the Act, Regulations or these Guidelines, the loan officer should seek clarification and direction from the lender’s head office, regional office or central office. The SBF Directorate may issue rulings in response to written requests originating from the regional office, central office or head office of a financial institution.
The program is administered by the banks and some designated financial institutes for acquiring funds spent on equipment, lease hold, property acquisition, etc. Small businesses have to submit their business financial statements and other supporting documents such as comprehensive business plan, professional surveys, studies and project justifications to be eligible for the loan. Business owners need various professional consultants to submit their application successfully and support it during examination if the underwriter requires any clarifications. Business plan is the main requirement in CSBFL applications.