Capital Leasing Pilot Project (PPLA)

Frequently Asked Questions

1. Where can I apply for a lease under the Capital Leasing Pilot Project (CLPP)?
2. Should I communicate with Industry Canada for a lease?
3. What businesses are eligible to apply under CLPP?
4. What is eligible for financing under CLPP?
5. How much can be financed under CLPP?
6. What is the maximum lease amount I can access under CLPP?
7. What are the costs related to leases?
8. If the lessor rejects my business proposal and does not approve my application for a lease under CLPP, what can I do?

1. Where can I apply for a lease under the Capital Leasing Pilot Project (CLPP)?

   You may apply for a lease by contacting any of the participating lessors.

2. Should I communicate with Industry Canada for a lease?

   The Canada Small Business Financing Program Directorate at Industry Canada is available to provide you with information related to the program. Industry Canada does not get involved in the decision making process of lessors nor does it accept or process lease applications.

   CLPP is delivered by participating lessors on behalf of the federal government. Lessors are required to apply the same care and procedures in making a CSBF capital lease as they would for conventional capital leases of similar amounts. Decisions related to entering into a capital leases rest entirely with the lessors.

3. What businesses are eligible to apply under CLPP?

   Most for profit small and medium size businesses with gross revenues or projected revenues of less than $5 million are eligible to apply for leases under this program. Such businesses can be corporations, sole prioprietors or partnerships.

4. What is eligible for financing under CLPP?

   • new equipment

   • used equipment as long as the term of the lease is not greater than the economic life of the equipment

5. How much can be financed under CLPP?

   Lessors could finance up to 100% of cost of equipment, defined as the purchase price of equipment plus additional cost necessary for its operation, excluding maintenance and training costs.

6. What is the maximum lease amount I can access under CLPP?

   The maximum lease amount a small or medium size business can access under this program is $250,000.

7. What are the costs related to leases?

   Registration Fee:
   The registration fee is 2% of the total amount of the lease. Yes, it can be financed and added to the total amount of the lease provided that the maximum amount does not exceed $250,000.

   Interest Rate:
   The maximum interest rate that a lessor may charge to a lease is the Government of Canada bond rate plus 13.25% for the term of the lease.

8. If the lessor rejects my business proposal and does not approve my application for a lease under CLPP, what can I do?

   Lessors are required to apply the same due diligence procedures for a CLPP as they would for a conventional capital lease and the decision to lease rests entirely with them. However, you can contact another participating lessor who may have different criteria related to the granting of a lease.