Mistakes, Problems and Official Sources
Official sources for small business financing in Canada: who does what
The federal and provincial bodies, laws and registries behind Canadian small business loans, what each one is responsible for, and what to check on its site before you borrow.
The official information on Canadian small business financing is spread across several bodies: ISED runs the Canada Small Business Financing Program, BDC is the federal Crown corporation that lends to small businesses, the Bank of Canada sets the policy rate that moves prime, the Justice Laws Website holds the Interest Act, Criminal Code and Bankruptcy and Insolvency Act, OBSI handles complaints about banks, and provincial registries record the security lenders take. This guide lists each one, what it does and does not do, and what to check before you sign a loan.
This guide is part of business loan mistakes to avoid.
Federal programs and lenders
| Body | What it does | What to check there |
|---|---|---|
| Innovation, Science and Economic Development Canada (ISED) | Runs the Canada Small Business Financing Program under the Canada Small Business Financing Act; does not lend or take applications | Current eligibility, loan limits, rate caps, fees, finance map of participating lenders |
| Business Development Bank of Canada (BDC) | Federal Crown corporation lending to and advising entrepreneurs, complementary to private lenders | Loan types, start-up and working capital products, current support programs |
| Export Development Canada (EDC) | Federal export credit agency; administers CEBA | Export financing, guarantees, CEBA program information |
| Farm Credit Canada (FCC) | Federal lender to agriculture and food businesses | Farm loans, since the CSBFP excludes farming |
| Regional development agencies | ACOA (Atlantic), CED (Quebec), FedDev Ontario, FedNor (Northern Ontario), PrairiesCan, PacifiCan, CanNor (North) | Regional loans and programs for eligible businesses and sectors |
| Futurpreneur Canada | Non-profit start-up financing and mentoring for ages 18–39, with BDC | Current loan amounts and eligibility |
In 2025 and 2026, BDC, EDC and the regional agencies announced measures for businesses affected by U.S. tariffs. Those measures have changed several times; check the agencies' own sites for what is open now.
Laws you may need to read
| Law | Why it matters for a business loan |
|---|---|
| Interest Act | Section 4: rates stated per day, week or month without the yearly equivalent are limited to 5% a year; section 10: mortgage prepayment after five years (not for mortgages given by a joint stock company or other corporation) |
| Criminal Code, section 347, and the Criminal Interest Rate Regulations | 35% APR criminal rate since 1 January 2025; commercial exemptions above $10,000 (48% APR up to $500,000) and above $500,000 |
| Canada Small Business Financing Act and Regulations | CSBFP eligibility, limits, fees |
| Bankruptcy and Insolvency Act | 10-day notice before enforcing security (section 244), proposals and bankruptcy |
| Companies' Creditors Arrangement Act | Restructuring for companies with debts over $5 million |
| Bank Act | Framework for federally regulated banks, including complaint handling |
| Income Tax Act | Deductibility of interest and financing expenses, capital cost allowance |
| Provincial Personal Property Security Acts | Registration and priority of security over business assets outside Quebec |
| Civil Code of Québec | Hypothecs, suretyship, prior notices in Quebec; see Quebec differences |
Federal statutes are on the Justice Laws Website; Quebec laws are on LégisQuébec; other provinces publish their statutes on their own official sites, often through CanLII as well.
Regulators and complaint bodies
| Body | Role |
|---|---|
| Office of the Superintendent of Financial Institutions (OSFI) | Supervises federally regulated banks for safety and soundness |
| Financial Consumer Agency of Canada (FCAC) | Supervises banks' market conduct obligations, mainly for individual consumers, including complaint handling |
| Ombudsman for Banking Services and Investments (OBSI) | Single external complaints body for federally regulated banks since 1 November 2024; free for small businesses |
| Provincial regulators of credit unions | For example FSRA (Ontario), BCFSA (British Columbia), and the AMF in Quebec for caisses |
| Canadian Human Rights Commission | Discrimination complaints against federally regulated organizations, including banks |
| Office of the Superintendent of Bankruptcy | Licenses insolvency trustees and supervises proposals and bankruptcies |
See the complaints guide for how to use them.
Registries
- Provincial PPSA registries: search what security is registered against your business, or the business you are buying.
- RDPRM in Quebec: hypothecs and other rights over movable property.
- Land registries: charges and hypothecs on real estate.
- Corporate registries: Corporations Canada for federal corporations, provincial registries for others, and the Registraire des entreprises in Quebec.
A registry search is one of the cheapest checks you can do before buying a business or its equipment.
Tax and data sources
- Canada Revenue Agency: business number, remittances, interest and financing expense deductions, CCA; see the true cost of fees.
- Bank of Canada: policy rate decisions and the schedule of announcements; see how prime-based pricing works.
- Statistics Canada: survey data on small business financing and economic conditions, useful when you build a forecast.
How to use official sources well
- Check the date. Program pages are updated; note when you read them.
- Prefer the primary source. A program's own page or the statute beats a summary, including this site.
- Ask the lender to confirm in writing any program term that matters to your decision.
- Keep copies of the pages you rely on with your loan file.
Frequently asked questions
Is BDC a bank?
BDC is a federal Crown corporation that provides financing and advice to entrepreneurs. It is not a deposit-taking bank.
Who regulates online business lenders?
Most are not banks and are not supervised by OSFI or FCAC. General laws, including the Criminal Code and the Interest Act, still apply. Check who you are dealing with before signing.
Where do I find the official text of the criminal rate rules?
The Criminal Code and the Criminal Interest Rate Regulations are on the Justice Laws Website; the Canada Gazette published the regulations with an explanatory analysis. See the criminal rate guide.
Is there a government guarantee for my business loan?
Under the CSBFP, the federal government shares the lender's losses, not yours. You remain fully liable.
Sources
- Innovation, Science and Economic Development Canada — CSBFP, Corporations Canada, Office of the Superintendent of Bankruptcy
- BDC — federal Crown corporation for entrepreneurs
- Export Development Canada — export financing and CEBA administration
- Bank of Canada — policy interest rate
- Justice Laws Website — federal statutes and regulations
- Ombudsman for Banking Services and Investments — bank complaints
- Office of the Superintendent of Financial Institutions — bank supervision
- Statistics Canada — small business financing data
