Changes to the Canada Small Business Financing Program (CSBFP)
On June 30, 2021, the coming into force of legislative changes to the Canada Small Business Financing Program removed the restriction excluding not-for-profit, charitable and religious enterprises as eligible borrowers.
In order to be eligible under the CSBFP, these organizations must carry on a business and are subject to the same due diligence requirements as other eligible borrowers who apply for a loan under this program. We understand that the extent and timing to which each financial institution will adopt these changes may vary. Loan officers should seek direction from their head office, regional office or central office.
This change, along with future proposed regulatory amendments, were announced in Budget 2021 as a means to help Canadian small businesses, especially those in industries that have been hardest hit by the COVID-19 pandemic, access the financing they need to recover, start-up or scale-up. Additional proposed regulatory changes announced in Budget 2021 will come into effect later this fiscal year once they have undergone the proper approval process.