Canada has strong public financing options for small business, and we point borrowers to them when they fit. The Canada Small Business Financing Program, delivered through banks and credit unions, guarantees loans for equipment, leasehold improvements and property up to program limits. The Business Development Bank of Canada lends directly and takes a patient view. Farm Credit Canada does the same for agriculture.
Where the public options stop
- Timing: public programs follow the lender’s own credit process, which is measured in weeks or months.
- Purpose: share purchases, CRA arrears and partner buyouts generally fall outside program eligibility, and program lines of credit for working capital are capped well below most commercial needs.
- Size: program caps are modest relative to a commercial real estate or equipment transaction.
- History: a new entity, a recent loss or a declined bank file can close the door.
Where private credit picks up
Private credit is the right tool when the deal is larger, faster or messier than the programs allow. A typical path is a private bridge to close an acquisition or a building, followed by a BDC or program loan as the permanent take-out once the business has a year of combined statements. We work alongside those lenders regularly and structure our facilities so the take-out is straightforward.
Have a situation like this? Tell us about the deal and a principal will respond within two business days. Cascade lends to businesses only, in Canadian dollars, and every rate we quote is an annual rate.
