Capital Leasing Pilot Project

Foreword

Industry Canada launched the Capital Leasing Pilot Project under the Canada Small Business Financing Act (CSBFA) April 1, 2002.

The Capital Leasing Pilot Project is designed to build on the success of the Canada Small Business Financing program, which is one of the federal government's most important program to help small and medium-sized enterprises (SMEs) access financing. Since 1961, lending through the Canada Small Business Financing Act, and its predecessor the Small Business Loans Act, has allowed smaller firms to grow, to hire new employees and to succeed.

In response to changes in the financial services market and as a result of requests from the leasing industry, the CSBFA is now being extended to cover capital leasing. The five-year pilot project will only apply to capital leases entered into for new or used equipment. The goal of the pilot is to make capital leasing more accessible to eligible SMEs, especially new and younger businesses. The pilot project design is similar to the CSBFA lending program.