From the federal loan-guarantee program to BDC and online lenders, a look at what's available — and what it costs.

With tariff pressure squeezing margins across the small business sector, financing options are getting a fresh look. The Canada Small Business Financing Program remains one of the more underused tools — a federal government program that guarantees up to 85% of eligible loans, letting banks, credit unions and caisses populaires lend more freely to smaller or newer businesses than they otherwise would.

What it actually costs

CSBFP-backed loans are rate-capped, with fixed-term loans maxing out at the lender's residential mortgage rate plus 3%, and lines of credit capped at prime plus 5% — though a 2% registration fee and 1.25% annual administration fee apply on top. For businesses that don't qualify through a bank, the Business Development Bank of Canada fills much of the gap, typically pricing loans at its own base rate plus 2 to 6 percentage points, working out to roughly 7.5%–11.5% this year.