Know the program's main boundaries
A loan under the program is often called a CSBFL. FundMyFranchise helps franchise buyers organize the project costs, business plan and application for lender review. This is one potential route for a franchise small business loan; it is not a direct government loan or a guarantee of approval.
ISED states that eligible Canadian small businesses and startups must have gross annual revenues of $10 million or less; farming businesses are excluded. The combined financing ceiling is $1.15 million: up to $1 million in term loans and $150,000 in lines of credit.
Within the term-loan limit, no more than $500,000 may fund equipment and leasehold improvements; that includes a maximum $150,000 for intangible assets and working capital. These are program ceilings with category limits, not an amount every applicant can borrow. Financial institutions deliver the program and decide whether to approve a loan.
Map your budget to the application
Start with the full project budget, then identify which costs you want considered under the program. We help organize that information so the lender can review the request against the current rules. Keep quotes, invoices, payment dates and descriptions together rather than submitting an unexplained total.
Separating costs also shows what remains to be funded through your own contribution or another arrangement. Do not assume the entire purchase price, every pre-opening expense or an amount already paid will automatically be eligible. Ask the lender before relying on a proposed financing structure.
Distinguish an asset purchase from a share purchase
ISED's small-business FAQ states that eligible assets purchased from an existing business may qualify, while share purchases are not eligible under CSBFP. A franchise resale therefore needs a clear transaction description before the program can be considered.
Give us the current purchase proposal and identify any terms still being negotiated. Your legal and accounting advisers should guide the purchase structure. We use that confirmed structure when preparing the financing request rather than changing the description to fit a preferred program.
Support the request with an in-house business plan
The application should explain the business behind the spending. Our business plans connect the project budget with your operating role, proposed location and financial assumptions. We work with your franchise information and supporting documents to make the request understandable.
If the lender asks for a revised forecast or an explanation of a cost, the response should agree with the rest of the file. We help coordinate those updates so that the plan, budget and application continue to describe the same project.
Review the offer and outstanding conditions
A discussion about program eligibility is not the same as a final financing offer. Ask the lender to explain the proposed amount, fees, repayment terms, security and conditions for advancing funds. Keep a written list of outstanding requirements and who is responsible for each item.
Our role is to prepare and coordinate the application, not to approve credit or override program rules. Share your brand, city, budget and project stage to begin. We can help determine what information is needed for a useful lender discussion and whether other financing routes should also be considered.
Your questions, answered
Are CSBFL and CSBFP the same term?
CSBFP is the Canada Small Business Financing Program. CSBFL is commonly used to describe a loan made under that program. Check the lender's actual product and the applicable program rules.
Does the government approve my franchise loan?
The financial institution assesses and approves the loan. ISED administers the program, which shares risk with participating lenders; that does not remove the lender's credit assessment.
Does the 95% offer for select brands describe all CSBFP loans?
No. A select-brand financing possibility should not be treated as a universal program percentage. The available financing must be confirmed for the particular brand, project and applicant, subject to lender approval.