Starting a Business in Canada? Here’s How to Secure Your First Loan
Starting a business in Canada in 2025? You're not alone, and funding remains one of the biggest hurdles for entrepreneurs. This guide to business loans in Canada outlines all the major financing options available, especially for startups looking to secure capital in a competitive market.
Government-Backed Startup Loans
The Canada Small Business Financing Program (CSBFP) is ideal for new businesses. It offers up to $1 million in loans, with the government guaranteeing 85% of the loan to help reduce lender risk.
Another powerful option is the BDC Startup Loan, designed specifically for businesses under 12 months old. With flexible repayment terms and advisory support, it’s one of the most startup-friendly loans on the market.
What You’ll Need to Qualify
Getting approved for a startup loan doesn’t require massive revenue, but it does require preparation. Most lenders will ask for:
- A detailed business plan
- 12–24 month cash flow projections
- Personal or business credit score (minimum ~650)
- Possibly a personal guarantee or collateral
Even if your company hasn’t started generating income yet, a clear plan and solid market strategy can go a long way with the right lender.
Conclusion
In 2025, Canada continues to support startups through generous funding programs and innovation-friendly loan structures. Whether you're investing in inventory, hiring your first employee, or purchasing equipment, the right loan can help move your business forward confidently.
