Expanded Financing for Canadian Small Businesses

Prime Minister Stephen Harper recently announced changes to the Canada Small Business Financing Program that will give small businesses improved access to financing.

The Canada Small Business Financing Program has been in operation for over 50 years. Its aim is to make it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.

The measures announced will allow more small businesses to apply and will make larger loans available for small businesses. The changes will improve the ability of small businesses to grow and will stimulate economic growth and create jobs.

The changes to the program will make loans available to more firms by increasing the revenue threshold under which a small business can apply for the program, and will support business start-up and growth by increasing the maximum loan amount and the maximum term length for loans financing the purchase or improvement of land and buildings.

The gross annual revenue threshold under which a small business can apply for the program was increased from $5 million to $10 million or less. Farming businesses are not eligible under this program. The maximum loan amount was raised from $500,000 to $1 million dollars.

Prime Minister Stephen Harper released the following statement:

“Our Government is committed to creating jobs and opportunities for Canadians. Small businesses are the lifeblood of the Canadian economy and face unique challenges when looking for financing. The changes we are announcing today to the Canada Small Business Financing Program will help more small businesses across the country secure the loans they need to prosper, grow and create jobs.”

For any one borrower of which no more than $350,000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment.

In keeping with today’s announcement by Prime Minister Harper, the maximum loan amount would be raised from $500,000 to $1 million for borrowers seeking to acquire real property.

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