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The Canada Small Business Financing Program seeks to increase
the availability of loans and capital leases for
establishing, expanding, modernizing and improving small
businesses. It does this by encouraging financial
institutions and leasing companies to make their financing
available to small businesses. Under the Program, a small
business must apply for a loan or lease at a financial
institution (bank, credit union or caisse populaire) or a
participating leasing company of its choice. If the loan or
lease is granted by the financial institution or the leasing
company, the federal government will reimburse 85 percent of
the lender's or lessor's losses in the event of
default.
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