Canada Small Business Financing Program (CSBFP) celebrated its 50th birthday!
Since 1961, the CSBFP, formerly known as the Small Business Loans (SBL) Program, has been contributing to the development of small and medium-sized enterprises (SMEs) by promoting the start-up of new businesses, the expansion of existing businesses, job creation and, thus, a more dynamic Canadian economy.
Unique in its way, the CSBFP fills a gap in terms of credit availability for higher-risk SMEs, particularly businesses at the start-up phase, by making it easier to access financing for the creation, expansion, modernization and improvement of eligible Canadian SMEs.
When it was launched, on January 19, 1961, as part of the job creation strategy of the government of the time, the program's only eligible lenders were seven chartered banks, and only four types of business were eligible (wholesale and retail trade, manufacturing and services such as tourism). The annual gross revenue of the SME could not exceed $250,000 and the maximum amount of the loan was $25,000. Loans provided under the program could be used to fund equipment, as well as renovation and improvement of the workplace. In the first year, the program provided 2,977 loans, totalling more than $25.5 million. In 2010, 7,441 loans to small businesses were approved, for a total value of more than $956 million.
As the program evolved, the parameters were revised to better reflect the economic situation. For example, in 1993, the maximum loan amount was increased to $250,000 and the eligibility criteria were broadened to make the program accessible to more SMEs. In addition, the number of financial institutions considered eligible lenders has gradually increased and the types of eligible enterprise have diversified to better respond to the needs of SMEs.
More recently, in Budget 2009, the maximum loan amount was again revised, from $250,000 to $500,000, of which $350,000 can be used for purposes other than the purchase of property, including leasehold improvements and the purchase or improvement of new or used equipment.
Over the years, the program has become a key tool for stimulating the growth of small and medium-sized businesses in Canada. Between 1999 and 2010, the CSBFP enabled small businesses to access more than 121,000 loans, representing over $11 billion.
The government recognizes the importance of small businesses and the significant contribution they make to the Canadian economy. For more than 50 years, the CSBFP has been contributing to the development of SMEs which, in turn, support their communities, create jobs and stimulate economic activity.
If the following document is not accessible to you, please contact us to obtain other appropriate formats.
This document is also available in a PDF version. (27.8 KB, 2 pages)
Information on Downloading a PDF Reader
To access the Portable Document Format (PDF) version you must have a PDF reader installed. If you do not already have such a reader, there are numerous PDF readers available for free download or for purchase on the Internet:
- Date modified: