CANADA NEWS RELEASE: Competition Bureau Launches Study of Competition in the Financing of Canada’s Small and Medium-sized Enterprises

Competition Bureau Launches Study of Competition in the Financing of Canada’s Small and Medium-sized Enterprises

January 12, 2026

Competition Bureau Canada

Today, the Competition Bureau has launched its market study into the state of competition in the financing sector for small and medium-sized enterprises (SMEs). The launch follows a public consultation on what the study should cover, and the Minister of Industry’s approval of the study’s final terms of reference.

The Bureau’s initial observations are that it can be hard for many SMEs to access competitive financing options. We aim to examine competition in the sector and how it can be improved to benefit SMEs and the new and innovative lenders that support them.

Our study is looking to answer the following questions:

• What is the state of competition in SME financing, and how does competition in the sector work?
• What barriers do lenders face when they try to enter the market or grow, and how can these barriers be reduced?
• What would make it easier for businesses to switch lenders?

We will share our findings in a final report, which will include recommendations on how governments across Canada can make SME financing more competitive.

The Bureau is seeking input from Canadians and businesses with experience in the SME financing sector. Those interested in making a submission can learn more at Market Study: Competition in financing for Canada’s small and medium businesses. The deadline for submissions is February 27, 2026.

Quick facts

• SMEs account for more than 98% of Canadian employers. They drive economic growth by investing, innovating and putting competitive pressure on larger businesses.
• Nearly half of SMEs (49.3%) in Canada sought external financing in 2023.
• The Bureau’s study will focus primarily on term loans, one of the most commonly used financial products for investing in business growth.
• Market studies allow the Bureau to assess a particular sector of the Canadian economy to identify relevant laws, regulations, policies or other factors that may affect competition.
• This study is not an investigation into specific allegations of wrongdoing. However, if the Bureau finds evidence that may raise concerns under the Competition Act, we will investigate and take appropriate action.

Additional Resources

• Market Study Information Bulletin
• Why competition matters

Contacts

Media inquiries:
Media Relations
Email: media-cb-bc@cb-bc.gc.ca

General information:
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