Canadian Business Capital Guides

How Much Owner Equity Do You Need for a Commercial Business Loan?

Most Canadian commercial lenders do not enforce a single universal owner equity percentage across all projects. The required owner contribution typically ranges from 10% to 25% of total project costs, depending on whether you are financing equipment, tenant leasehold build-outs, or commercial real estate. Asset-backed equipment facilities typically require lower owner equity (10% to 15%), while leasehold renovations or higher-risk startup expansions often require 20% to 25% equity from personal savings, retained business earnings, or verified gifts.