This calculator estimates monthly payments on a CSBFP term loan using equal principal payments with interest on the declining balance, and an optional interest-only period at the start of the term. If you are unfamiliar with the CSBFP, please read the program overview below before using the calculator.
The Canada Small Business Financing Program (CSBFP) is a Government of Canada initiative that makes it easier for small businesses and startups to get loans from banks and credit unions. Under the program, the government reimburses lenders for up to 85% of eligible net losses on approved loans that go into default. Under Section 8 of the Canada Small Business Financing Regulations, lenders are legally required to apply the identical evaluation procedures to a CSBFP loan as they would to a conventional loan of the same amount — the government guarantee does not substitute for creditworthiness, and lenders must independently assess each applicant's repayment ability without relying on the guarantee in their lending decision.
Over the past 10 years, more than 53,000 CSBFP loans totalling more than $11 billion have been made to Canadian small businesses. For franchise buyers, the CSBFP is often the most accessible and cost-effective financing route available.
A business plan and 2–3 years of financial projections demonstrating the business will generate enough revenue to cover loan payments.
The bank will run credit checks on both the business and the individual owners. Clean personal credit is a significant factor in approval.
Detailed invoices or contracts for all assets being financed, including make, model, and serial numbers where applicable. All invoices must be in the legal name of the borrower — typically the corporation — which must match the name of the tenant on the leasehold premises. The name and address of the borrowing entity must appear on all invoicing. FranMax reviews all documentation for this compliance before submission. Proof of payment if assets have already been purchased.
Articles of incorporation or partnership agreement, GST/HST numbers, and personal identification for all principals and owners.
Enter your loan details below to generate a full monthly amortization schedule. Hover over each field label for an explanation of what to enter.
The portion of each payment that reduces your loan balance. Under the CSBFP equal-principal method, this amount stays the same every month.
The interest charged on the remaining balance. Because the balance decreases each month, your interest payment gradually reduces over the life of the loan.
Principal plus interest for that month. Your total payment starts higher and decreases gradually as interest charges fall — unlike a fixed-payment mortgage where the total stays the same.
During the deferral months, you pay only interest — no principal. This keeps your early payments low while your business gets established. Principal repayment begins after the deferral period ends.
The Government of Canada charges a 2% registration fee on the total loan amount. This fee can be added to your loan and financed — you do not need to pay it out of pocket at closing.
This calculator uses the maximum CSBFP rate (prime + 3%). Your actual rate, approved amount, and term are set by your lender and may differ. FranMax can help you determine what to realistically expect from your specific application.
Roger Noble has structured hundreds of CSBFP applications. A 15-minute call can tell you what amount is realistic, what term to expect, and whether your application is ready to submit.
