Competition Bureau to study competition in financing for Canada's small and medium businesses Français
The Bureau is seeking public feedback on the proposed terms of reference of the planned study
GATINEAU, QC, Sept. 4, 2025 /CNW/ - The Competition Bureau is consulting Canadians as it prepares to launch a market study into the state of competition in the lending sector for small and medium-sized enterprises (SMEs) in Canada.
SMEs account for more than 98% of Canadian employers. They drive economic growth by investing, innovating and putting competitive pressure on larger businesses.
Access to competitive financing is critical to enabling SME's success and growth. However, recent studies and observations have raised concerns about competition in the lending sector:
- Canada's lending sector is dominated by the big banks;
- New or smaller lenders appear to face barriers to entry and expansion;
- Comparing loan options and switching between lenders can be challenging; and
- SMEs face higher borrowing costs than larger firms, and this gap is larger in Canada than in other OECD countries.
The findings of the Bureau's market study will inform our recommendations on how governments across Canada can improve competition, to the benefit of SMEs, the financial institutions seeking to lend to them and the broader Canadian economy.
As a first step, the Bureau is inviting interested parties to review our consultation paper and share their views on the proposed terms of reference for the market study by October 3, 2025.This is an opportunity for Canadians to help shape the study's scope and methodology.
Following this consultation, the Bureau will publish the final terms of reference and officially launch the market study. The final terms of reference will also include details on how stakeholders can provide submissions during the market study.
Quotes
"Small and medium-sized businesses are the backbone of the Canadian economy. Increasing competition in Canada's financing sector would give these businesses better access to the funding they need, support greater productivity, and boost innovation. Our goal with this study is to provide policymakers with evidence and recommendations to make this a reality."
Matthew Boswell,
Commissioner of Competition
Quick facts
- Nearly half of SMEs (49.3%) in Canada sought external financing in 2023.
- The Bureau's study is expected to 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.
Related products
- Consultation on proposed terms of reference for a market study on competition for financing to small and medium-sized enterprises (SMEs)
- Public consultation feedback form
- Market study: Competition in financing for Canada's small and medium businesses
Associated links
General information:
Request for information | Complaint form
Stay connected:
X (Twitter) | Facebook | LinkedIn | YouTube | RSS Feed | Email Distribution List
The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
SOURCE Competition Bureau
Contacts: Media inquiries: Media Relations, Email: [email protected]
Share this article