Top Small Business Loan Lenders in Canada: Where to Find the Right Financing for Your Business
Finding the right lender can make all the difference when you’re looking to grow your small business, and there are a variety of small business loan lenders ready to help. Each offers something a little different in terms of rates, approval times, and eligibility. The challenge is figuring out which lender fits your business financing needs best. Maybe you’re looking for flexible repayment terms, or maybe fast funding is your top priority. Either way, it’s important to understand what each lender brings to the table so you can make a confident choice.
So in this article, we’ll walk you through some of the top small business loan lenders in Canada, what they offer, and what you should consider before applying. Let’s help you find the right fit.
Top Banks Offering Small Business Loans in Canada
Many banks and credit unions are offering small business loans in Canada, but here are the top banks that provide small business loans within the country:
TD Canada Trust
TD offers a range of small business financing solutions, including term loans, lines of credit, and government-backed loans like the CSBFP. They’re known for solid customer service and flexible repayment plans.
RBC
The Royal Bank of Canada (RBC) offers small business loans, credit lines, and specialized financing for things like agriculture and franchising. Their Business Loan Calculator helps you estimate payments, and they have advisors who can walk you through government loan programs as well. RBC is great if you’re looking for a full-service bank with a national reach and deep resources.
CIBC
CIBC supports small businesses with many financing options, including fixed-term loans, business lines of credit, and even vehicle financing. One of their standout features is the ability to apply online or through your advisor with relatively quick turnaround times. They also participate in the Canada Small Business Financing Program, which is helpful for businesses with less collateral. If you’re already a CIBC customer, getting approved may be easier due to your existing relationship.
BMO
The Bank of Montreal (BMO) currently offers customized loan solutions for small business owners, including startup loans, working capital, equipment financing, and commercial mortgages. Their advisors focus on understanding your industry and long-term goals, which is ideal if you want more than just a one-size-fits-all loan. BMO also partners with federal loan programs, which helps businesses qualify for lower-risk financing.
National Bank
While National Bank is most popular in Quebec, it has a growing footprint across Canada and strong offerings for small businesses. They provide term loans, lines of credit, and financing tailored to industries like real estate, trade, and agriculture. Their business advisors often work closely with clients to navigate government lending programs or build custom financing plans. They’re particularly friendly to small and medium-sized enterprises (SMEs) and may offer more flexibility than the big five banks.
Government-Backed Programs That Offer Support For Small Businesses
Canada Small Business Financing Program (CSBFP)
The CSBFP is one of the most popular loan programs for small businesses in Canada. It’s backed by the federal government and helps reduce lender risk, making it easier for businesses to access up to $1 million in financing. Funds can be used for purchasing equipment, commercial vehicles, renovations, or even buying land or buildings. It’s offered through most major banks, but you’ll need to meet the eligibility requirements and submit a solid business plan.
Business Development Bank of Canada (BDC) Small Business Loans
The BDC is a government-owned financial institution focused entirely on supporting Canadian entrepreneurs. Their small business loans offer competitive interest rates, flexible terms, and financing amounts starting at $5,000.
Futurpreneur Canada Startup Program
Futurpreneur Canada, partially backed by the federal government, supports entrepreneurs aged 18–39 with startup loans of up to $60,000, in partnership with BDC. This program includes two years of expert mentorship, helping new business owners navigate early-stage challenges. It’s designed for individuals launching their first business and is open to a wide range of industries.
Canadian Agricultural Loans Act (CALA) Program
The CALA Program helps farmers and agricultural cooperatives access affordable financing to grow their operations. It’s backed by Agriculture and Agri-Food Canada, and CALA loans can be used to purchase land, livestock, equipment, or improve existing assets. Loan limits go up to $500,000, and the government guarantees a portion of the loan to make lenders more comfortable offering credit.
Comparing the Best Online Lenders for Small Business Loans in Canada
Now that we’ve established the best banks to obtain a small business loan from, let’s compare their options and what they offer to business owners like you.
Banks:
| Bank | Fees | Loan Type | Loan Amounts | Interest Rates | Terms | Special Features |
| CIBC | $200 – $1200 (renewal, set up, and registration fee) | Canada Small Business Financing Program | Up to $1,000,000 | 3% | Must be paid back within 25 years max | Fast online application, flexible payment terms, and mobile banking integration |
| RBC | $275 start-up fee | CSBF Loan (Canada Small Business Financing) | Up to $1,000,000 | 4% | Must be paid back within 25 years max | Industry-based financing, loan calculator, bundled business solutions |
| TD | $200 start-up fee | TD Small Business Loan | Up to $1,000,000 | 3% | Must be paid back within 25 years. | Flexible payments, industry-specific lending, and good online tools |
| BMO | Not publicly disclosed | BMO Business Flex Loans | Up to $1,000,000 | Interest rate varies | Must be paid back in 25 years. | Personalized advisor support, strong in real estate and startup lending |
| Scotia Bank | Minimum of $100 | Business Term Loan | Up to $1,000,000 | 3% | Must be paid back within 25 years. | Small Business Advisor network, integrated merchant services |
| National Bank | Not publicly disclosed | Business Term Loan | Up to $1,000,000 | 3% | Must be paid back within 15 – 20 years. | Strong Quebec presence, bilingual services, flexible eligibility |
What to Look for in a Small Business Loan Lender in Canada (And Red Flags to Avoid)
Choosing the right small business loan lender in Canada is about more than just interest rates. You want a lender that understands your business goals and offers terms that actually work for you, not just them. You should always look for:
- Clear repayment options
- flexible terms
- transparency about all fees involved.
A good lender should be easy to reach, willing to answer questions, and upfront about how the process works. In terms of red flags, this is what you should watch out for:
- High-pressure sales tactics
- Hidden fees
- Lack of customer reviews
- Vague Terms
If a lender promises “guaranteed approval” with no credit check, proceed with caution. That usually signals a predatory lender. Trust your gut, though, if something feels off, it probably is. Always compare options, read the fine print, and ask around before making a decision. The right lender should feel like a partner in your business success, not just a creditor looking to get paid.
There’s no specific solution for everyone in terms of obtaining a small business loan, and that’s a good thing. The key is to find a lender that fits your unique needs and growth plans. Take your time to compare terms, ask questions, and make sure the lender truly understands your business. Don’t be afraid to think outside the box either, online lenders and alternative financing options have made it easier than ever to access capital. A great lending partner will not only help you access funding but also support your business long-term. The right loan, from the right lender, can be the boost your business needs to thrive.
