Small Business Financing Options In Canada

Access to financing is the fuel that powers business growth. Whether you’re launching, expanding, or recovering, understanding Canada’s loan and grant programs is essential. Mackisen CPA Auditors Montreal helps entrepreneurs navigate government funding, bank loans, and private lending options while ensuring full compliance with CRA and Revenu Québec financial requirements.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 20(1)(c): Allows interest deductions on business loans used to earn income.
Financial Administration Act (Canada): Governs federal loan and grant disbursement programs.
Taxation Act (Quebec) Section 34: Requires proper recordkeeping for subsidy and loan reporting.
CPA Canada Handbook Section 3290: Defines standards for accounting of government assistance.
Canada Small Business Financing Program (CSBFP): Offers federally backed loans to help small businesses acquire assets.

Key Court Decisions
Beaudoin v. The Queen (2020): Upheld CRA’s right to audit loan purpose and usage.
Royal Bank v. Canada (2019): Denied financing to businesses lacking CPA-verified statements.
Simard Beaudry Construction v. Canada (2019): Confirmed interest deductibility when used for income generation.
Lincora Group v. Quebec (2019): Penalized inaccurate grant reporting.
Tremblay Holdings v. The Queen (2021): Validated CPA-audited funding applications as compliant.

Why CRA Targets / Issues / Enforces
CRA often reviews business loans to ensure funds are used legitimately for income-generating purposes. Misuse of loan proceeds or misreporting of grants can trigger reassessments. Mackisen CPA Auditors Montreal ensures all financing activities are documented, compliant, and strategically optimized.

Mackisen Strategy
Financing Assessment — Evaluate eligibility for loans, grants, and subsidies.
Application Preparation — Prepare CPA-certified financials and cash flow forecasts for approval.
Loan Structuring — Optimize debt-to-equity ratios for sustainable borrowing.
Grant Tracking — Monitor compliance for government subsidies.
Financial Reporting — Document all transactions for CRA audit protection.
Lender Relations — Coordinate with banks and institutions for transparent funding.

Powering Client Needs and Growth
A Montreal startup secured $250,000 in CSBFP funding with Mackisen-prepared financial projections. A Quebec manufacturer qualified for government innovation grants after CPA verification. A Toronto retailer improved bank relations with Mackisen-prepared financial statements.
How Mackisen Clients Benefit

• Access to federal and provincial funding

• CRA-compliant loan and grant reporting

• CPA-certified financial statements for lenders

• Improved debt management and cash flow

• Professional guidance from application to repayment

Common Questions
Can I deduct loan interest? Yes, if funds generate business income.
What grants are available in Quebec? Innovation, export, and hiring programs.
Do I need a CPA for applications? Most lenders and grant agencies require CPA-reviewed financials.
Can Mackisen handle all financing documents? Yes, from projections to compliance reports.
Will CRA audit loans or grants? Yes, if documentation is incomplete or misused.

Why Mackisen
Mackisen CPA Auditors Montreal combines financial strategy and compliance expertise to help businesses secure funding confidently. We turn complex financing into sustainable growth opportunities.