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ARCHIVED—Canada Small Business Financing Act — 2007-2008
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The Canada Small Business Financing (CSBF) Program is a national program operating in all provinces and territories. Financial institutions make term loans of up to $250 000 to small businesses to purchase land, buildings or equipment, or to improve buildings and equipment. The Government of Canada pays lenders 85 percent of the eligible losses incurred on defaulted loans. One of the objectives of the CSBF Program is incrementality, which is the program’s effectiveness in extending financing that would otherwise have been unavailable to small and medium-sized businesses, or available only under less attractive conditions. The other objective is cost recovery, which is defined as the cost of claims on defaulted loans being balanced by revenues on loans over a period of 10 years.
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