Is there an SBA loan in Canada?

No. The Small Business Administration (SBA) is a United States government agency, and its 7(a) loan page lists being located in the U.S. among the conditions for eligibility. If you are in Canada and searched for an SBA loan, the useful question is what exists here. The closest Canadian program is the Canada Small Business Financing Program (CSBFP), run by Innovation, Science and Economic Development Canada (ISED). It is not a Canadian version of the SBA, and it works through lenders.

What the SBA is and what its 7(a) page says

The SBA describes itself as dedicated to helping small business owners and entrepreneurs, and says it helps drive innovation, job creation and economic opportunity in communities across the United States. Its 7(a) page calls 7(a) the SBA’s primary business loan program and says it provides a loan guarantee to lenders. To be eligible, the page says, a business must be an operating business, be located in the U.S. and not be a type of ineligible business. The page does not say anything about Canadian businesses, so read it yourself before relying on this summary.

What the CSBFP does instead

ISED says the CSBFP makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders. It describes the program as a loan program in collaboration with financial institutions, and states that your financial institution is responsible for making the decision to approve your loan. So the loan comes from the financial institution, which also makes the approval decision. The program guidelines also require that the business is carried on in Canada, with a place of business in Canada and assets held in Canada for the purpose of operating the business.

If you are thinking about buying a business

The CSBFP guidelines say the acquisition of shares is not eligible for financing, so a share purchase does not fit the program. How it treats other kinds of purchase is covered in the CSBFP explained for buyers. ISED suggests that when you talk to your financial institution about a line of credit or loan, you ask about the CSBFP. Nothing on this page tells you whether you would qualify. That is the lender’s decision.