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Competition Bureau Investigates SMB Financing

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  Published in Business and Finance on Saturday, January 17th 2026 at 15:20 GMT by Toronto Star

Ottawa, ON - January 17th, 2026 - Canada's Competition Bureau has announced a comprehensive study into the financing options available to small and medium-sized businesses (SMBs), signaling growing concerns about equitable access to capital and potential anti-competitive practices within the financial sector. The investigation, unveiled Friday, aims to evaluate the roles of traditional banks, emerging alternative lenders, and other financial institutions in the marketplace, with a particular focus on ensuring a level playing field for the businesses that form the bedrock of the Canadian economy.

The announcement arrives at a critical juncture, as many SMBs continue to grapple with the lingering economic fallout from the COVID-19 pandemic. While government support programs provided vital lifelines during the crisis, many businesses are now finding it challenging to secure the ongoing financing required for recovery and sustained growth. This study represents a proactive step by the Competition Bureau to address these challenges and stimulate a more competitive and accessible lending environment.

Scope of the Investigation

The study's scope is broad, reflecting the complexity of the financing landscape. The Bureau will meticulously examine several key areas. Firstly, the terms and conditions attached to loans - interest rates, fees, collateral requirements, and repayment schedules - will be under scrutiny. This will include investigating whether these terms consistently disadvantage SMBs compared to larger corporations. The availability of credit itself is another crucial area of focus. The bureau will investigate whether certain regions or industries face disproportionate barriers to accessing funds.

Furthermore, the study acknowledges the transformative impact of technology and innovation on the financial sector. Fintech companies and online lending platforms are rapidly changing the way businesses obtain financing, and the Bureau will assess how these developments are affecting competition and consumer choice. This includes examining the rise of alternative lending models and their impact on traditional banking practices.

Perhaps most importantly, the Bureau will actively investigate the possibility of anti-competitive behavior. This includes looking into potential collusion among lenders - secret agreements to fix prices or restrict services - as well as exclusionary tactics employed by larger institutions to stifle competition from smaller or newer players. The investigation will specifically examine whether practices currently in place unfairly restrict access to capital for SMBs.

Stakeholder Input and Timeline

The Competition Bureau emphasizes a collaborative approach, stating that the study will incorporate input from a wide range of stakeholders. This includes SMB owners, financial institutions (both traditional banks and alternative lenders), industry associations, and consumer advocacy groups. Public consultations and online submission portals are anticipated to facilitate this process.

The study is expected to span several months, a timeline necessary to thoroughly analyze the complexities of the financing market and gather comprehensive data. The findings and recommendations will be publicly released, potentially leading to policy changes and increased regulatory oversight to ensure fair competition and improved access to capital for Canadian SMBs.

Welcome from Business Groups

The announcement has been met with widespread approval from business advocacy groups, who have long voiced concerns about the difficulties SMBs face in securing financing. These groups welcome the Bureau's intervention, viewing it as a potential catalyst for a more equitable and competitive financial sector. They hope the study's findings will lead to concrete actions that level the playing field and empower SMBs to thrive, contributing to overall economic growth and job creation across Canada.