Business loans
Most business rates start with the bank’s prime rate. Here’s how your rate is set, and how to get a lower one.
Business loans
Most business rates start with the bank’s prime rate. Here’s how your rate is set, and how to get a lower one.
The short answer
The prime rate is the base rate banks use for many loans. In October 2026, prime at Canada’s big banks is 4.45%.
Banks set prime based on the Bank of Canada’s rate, which is 2.25%. When the Bank of Canada changes its rate, prime usually moves too. The next Bank of Canada decision is on October 28, 2026.
Your rate is usually prime plus an extra amount. The extra depends on how risky the loan looks to the lender. They look at:
| Fixed rate | Variable rate | |
|---|---|---|
| Your rate | Stays the same | Moves with prime |
| Your payment | Easy to plan | Can go up or down |
| Good if | You want no surprises | You think rates may fall, or you plan to pay early |
| Program | Rate |
|---|---|
| CSBFP floating term loan | Up to prime + 3% |
| CSBFP fixed term loan | Up to the lender’s mortgage rate for that term + 3% |
| CSBFP line of credit | Up to prime + 5% |
| BDC Pivot to Grow (tariff-hit businesses) | 0% for the first 12 months |
BDC’s tariff loan is for eligible businesses hit by the newest U.S. tariffs, with loans from $250,000 to $5 million. See every tariff program.
See what a rate means for your payment with our business loan calculator. Or get real offers from our lending partners.
At Canada’s big banks, prime is 4.45% as of October 2026. It can change after each Bank of Canada decision.
It depends on the lender and your business. Rates close to prime are for strong, low-risk borrowers. Compare offers to see what is fair for you.
Often, yes. A business loan is usually riskier for the lender than a home loan, so the rate is usually higher.
No one knows for sure. Rates follow the Bank of Canada. A variable rate goes up or down with prime.
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