Business Loans in Quebec
Quebec has over 260,000 small businesses. Apply online in minutes for a business loan tailored to Quebec's market, with a fast and simple process from start to funding.
Written by Uriel Manseau, B.Eng., M.Sc. Applied MathematicsStep 1 of 3
What do you need?
What are business loans in Quebec?
Quebec is home to over 260,000 small businesses and has one of the most developed business financing ecosystems in Canada. The province's lending market is dominated by Desjardins, Canada's largest federation of credit unions with over 10 million members and clients in Quebec. Two province-based banks, Banque Nationale du Canada and Banque Laurentienne, are headquartered in Montreal. Note: Banque Laurentienne is exiting SME lending (its retail and SME portfolios are being transferred to Banque Nationale). Banque Nationale now serves as the primary Quebec-headquartered bank for small business lending alongside the national banks and BDC. Quebec businesses benefit from Investissement Quebec, a provincial Crown corporation that provides loans, loan guarantees, and equity investments. The Fonds de solidarité FTQ and Fondaction CSN are labour-sponsored venture funds unique to Quebec that invest billions in local businesses. CED (Canada Economic Development for Quebec Regions) is the federal regional development agency serving Quebec. The Autorité des marchés financiers (AMF) regulates financial services in the province.
How it works
Apply online
Complete a simple application with your business details, financial history, and funding needs. No commitment required.
AI-powered review
Our AI agents analyze your application using alternative data and financial signals beyond traditional credit scores, giving more businesses a fair chance.
Get funded
Receive your approved funds directly into your business account. Most applications are reviewed within 48 hours.
Types of business loans available in Quebec
- CSBFP loans (up to $1 million) for equipment, leaseholds, and commercial property through any participating Quebec lender
- Investissement Quebec financing: ESSOR program (loans and loan guarantees for SMEs), IMPLIQ program (regional economic development), and equity participation for growth companies
- BDC term loans ($25,000 to $100,000+) available through BDC offices in Montreal, Quebec City, Laval, Gatineau, Sherbrooke, Trois-Rivières, Saguenay, and Rimouski
- Fonds de solidarité FTQ investments for Quebec businesses at every growth stage, from startup to expansion
- Fondaction CSN financing for Quebec businesses with a focus on sustainable development and the social economy
- SADC and CAE loans ($5,000 to $150,000) through 67 community organizations (57 SADCs + 10 CAEs) across Quebec
- MicroEntreprendre microloans ($2,000 to $20,000) for Quebec entrepreneurs who face barriers to traditional financing, with nano-loans starting at $2,000
- Futurpreneur loans (up to $60,000 including BDC co-lending) for Quebec entrepreneurs aged 18 to 39
Eligibility for business loans in Quebec
- ✓Quebec-registered business (sole proprietorship, partnership, or corporation registered with the Registraire des entreprises du Quebec)
- ✓Minimum 6 to 12 months in operation for most lenders (startups qualify for Futurpreneur, MicroEntreprendre, and Fonds de solidarité FTQ)
- ✓Annual revenue of $50,000+ for conventional loans (lower for MicroEntreprendre and SADC/CAE programs)
- ✓Personal credit score of 600+ for the business owner (some alternative lenders and community programs accept lower)
- ✓Business plan required for CSBFP, BDC, Investissement Quebec, and SADC/CAE applications
- ✓Valid Quebec photo ID and proof of business address in Quebec
How much can you borrow for a business in Quebec?
Quebec business loan amounts depend on the program and lender. CSBFP loans cover up to $350,000 for equipment and leasehold improvements, plus up to $1 million total including commercial property. Investissement Quebec's ESSOR program offers loans and loan guarantees with no fixed cap for qualifying SMEs. BDC offers term loans starting at $25,000. Desjardins offers commercial loans from $25,000 into the millions through its caisse network. The Fonds de solidarité FTQ invests from $100,000 to several million (from a $23 billion asset base) at every business stage. SADC and CAE organizations across rural Quebec provide microloans from $5,000 to $150,000. MicroEntreprendre offers up to $50,000 for entrepreneurs facing barriers. Interest rates range from prime + 1% to prime + 5% depending on your risk profile, with CSBFP loans capped at the lender's prime rate plus 3%. Quebec charges QST (9.975%) + GST (5%) = 14.975% on business equipment, the second-highest rate in Canada after the Atlantic provinces. Businesses registered for QST can recover taxes through input tax refunds.
Pros and cons of business loans in Quebec
Pros
- + Quebec has unique financing sources that no other province offers: Fonds de solidarité FTQ ($20B+ in assets) and Fondaction CSN invest directly in Quebec businesses
- + Investissement Quebec provides provincial loans, guarantees, and equity that complement federal and private lending
- + Desjardins' massive caisse network gives Quebec businesses more local lending options than any other province
- + 67 SADC and CAE organizations serve Quebec communities with loans, coaching, and over 10,000 entrepreneurs supported annually
- + Quebec's generous tax credits (SR&ED, CDAE, multimedia) can offset borrowing costs for tech and creative businesses
Cons
- - Quebec's 14.975% combined tax (QST + GST) on equipment is the second-highest in Canada, increasing financed amounts
- - Language requirements: most Quebec government programs require French-language applications and documentation
- - The AMF regulatory environment adds compliance requirements for certain types of business financing
- - Higher payroll costs (QPP, QPIP contributions) can strain cash flow available for loan repayment
Comparing business lenders in Quebec
| Feature | Desjardins | Major Bank | BDC | Investissement Quebec |
|---|---|---|---|---|
| Typical loan range | $25K - $5M+ | $25K - $10M+ | $25K - $100M+ | $50K - $50M+ |
| Interest rates | Prime + 1% to 4% | Prime + 1.5% to 5% | Prime + 2% to 4% | Varies by program |
| CSBFP eligible | Yes | Yes | No (BDC has own programs) | No (provincial programs) |
| Quebec-specific focus | Yes (4.5M Quebec members) | National coverage | 8+ Quebec offices | Quebec only |
| Startup friendly | Some programs | Limited | Yes (startup loans) | Yes (ESSOR, equity) |
| Application speed | 1 - 3 weeks | 2 - 4 weeks | 2 - 6 weeks | 4 - 12 weeks |
Tips for getting a business loan in Quebec
- 1.Contact Info Entrepreneurs (Reseau Entreprises Canada) in Montreal for free bilingual business advisory services, including help with business plans and loan applications. They serve as a one-stop shop for Quebec entrepreneurs.
- 2.Look into Investissement Quebec programs before borrowing commercially. ESSOR offers loans and loan guarantees on favorable terms, and the equity programs let you access capital without taking on debt.
- 3.If you are 18 to 39, apply through Futurpreneur first. The program offers up to $60,000 (including BDC co-lending) plus 2 years of mentorship, and is available across Quebec in both French and English.
- 4.Check Quebec's generous tax credits. The SR&ED provincial credit (14% refundable for SMEs), the CDAE credit for e-business development (30% of salaries), and multimedia tax credits can significantly reduce the net cost of investments financed by a loan.
- 5.For rural Quebec businesses, contact your local SADC or CAE. Quebec has 67 of them (57 SADCs + 10 CAEs), and they provide loans, coaching, and community economic development support. They help over 10,000 entrepreneurs each year.
- 6.If you face barriers to traditional financing (newcomers, people with disabilities, social economy enterprises), contact MicroEntreprendre. They offer microloans up to $50,000 with mentorship across Quebec.
Responsible business borrowing in Quebec
Borrow only what your business can repay from operating cash flow. Before signing, calculate the total cost of borrowing including interest and fees. Quebec businesses can access free guidance through Info Entrepreneurs in Montreal (infoentrepreneurs.org) or the Chambre de commerce du Montreal metropolitain (ccmm.ca). For rural communities, contact your local SADC or CAE (sadc-cae.ca). If your business is struggling with debt, contact the Association cooperatives d'economie familiale (ACEF) or speak with a Licensed Insolvency Trustee. The Autorite des marches financiers (AMF) regulates financial services in Quebec. File complaints at lautorite.qc.ca.
Frequently asked questions
How do I get a small business loan in Quebec?
Contact Info Entrepreneurs in Montreal for free bilingual advisory services and business plan guidance. You can also apply online through Sphera Credit for a fast, AI-powered decision. For startups, Futurpreneur and MicroEntreprendre offer accessible financing across Quebec.
What is Investissement Quebec and does it fund businesses?
Investissement Quebec is a Quebec Crown corporation that provides financing to businesses across the province. Programs include ESSOR (loans and loan guarantees for SMEs), IMPLIQ (regional economic development), and equity participation for growth companies. They also administer provincial tax credits and foreign investment attraction.
What are the Fonds de solidarite FTQ and Fondaction CSN?
These are labour-sponsored venture capital funds unique to Quebec. The Fonds de solidarite FTQ manages over $20 billion and invests in Quebec businesses at every stage, from startup to expansion. Fondaction CSN focuses on sustainable development and the social economy. Both offer patient capital with longer time horizons than traditional lenders.
Can a startup get a business loan in Quebec?
Yes. Quebec startups have more options than most provinces. Futurpreneur offers up to $60,000 (ages 18 to 39). MicroEntreprendre provides microloans up to $50,000 for entrepreneurs facing barriers. The Fonds de solidarite FTQ invests in early-stage Quebec companies. SADC and CAE organizations offer startup loans in rural areas. Investissement Quebec's ESSOR program also supports new businesses.
What Quebec tax credits can reduce my borrowing costs?
Quebec offers some of Canada's most generous business tax credits. The Quebec SR&ED credit provides a 14% refundable credit for SMEs on R&D expenditures. The CDAE credit covers 30% of eligible salaries for e-business development. The Interactive Digital Media credit covers up to 37.5% of production costs. The Investment Tax Credit for Manufacturing & Processing provides a 10% credit for eligible investments in Quebec.
What are SADC and CAE organizations in Quebec?
Quebec has 67 SADC (Societes d'aide au developpement des collectivites) and CAE (Centres d'aide aux entreprises) organizations serving communities across the province. They provide business loans from $5,000 to $150,000, business coaching, mentorship, and community economic development. They are funded by CED (Canada Economic Development for Quebec Regions) and support over 10,000 entrepreneurs annually.
What is MicroEntreprendre?
MicroEntreprendre is a Quebec-wide network of 20 community microlending organizations across 17 regions. They provide microcredit from $2,000 to $20,000 with coaching and mentorship for entrepreneurs who face barriers to traditional bank financing, including newcomers, people with disabilities, Indigenous entrepreneurs, and social economy enterprises.
How does QST affect business loans in Quebec?
Quebec charges QST (9.975%) + GST (5%) = 14.975% on most business equipment purchases. This is the second-highest rate in Canada. Businesses registered for QST can recover taxes through input tax refunds on eligible purchases. Loan interest payments are exempt from both QST and GST.
Can I get a business loan in Quebec with bad credit?
Yes. MicroEntreprendre considers the overall business case, not just credit score. SADC and CAE organizations take a holistic approach to lending. The Fonds de solidarite FTQ evaluates growth potential alongside credit history. Some alternative lenders approve businesses with lower credit scores but charge higher rates (12% to 25%+). Improving your personal credit above 600 expands your options significantly.
What is the role of the AMF in business lending?
The Autorite des marches financiers (AMF) regulates financial markets and products in Quebec, including deposit-taking institutions, securities, and insurance. For business lending, the AMF oversees Desjardins caisses and other Quebec financial cooperatives. The AMF also administers the Quebec Deposit Insurance Fund. File complaints about lending practices at lautorite.qc.ca.
Ready to fund your Quebec business?
Apply for a business loan online. Fast decision, competitive rates, no commitment required.
Apply now