CSBFP Rate Ceiling in October 2026

The Canada Small Business Financing Program (CSBFP) is a government-backed loan guarantee delivered through banks and credit unions. It is not a grant. Borrowers repay principal plus interest.

ISED publishes that floating-rate term loans under the program are capped at the lender’s prime + 3%. As of early October 2026 that ceiling is approximately 7.45%. Fixed-rate options and actual pricing are set by the originating lender within the program rules.

What the ceiling means

• Maximum floating rate is prime + 3%, not a guaranteed rate you will receive.
• Lenders still underwrite. Revenue under $10 million, use of funds, and other criteria apply.
• A 2% registration fee is charged by the government and can be financed.
• Average approved loan in 2024-25 was about $294,000; most startups receive less.

These figures come from ISED CSBFP overview materials reviewed October 2026. Confirm current prime rates and program details with ISED or your lender. Canada Business Loan is not a lender and does not approve loans.