Quick links
- Written submissions to the market study
- News release: Competition Bureau launches study of competition in the financing of Canada’s small and medium-sized enterprises
- Market study notice: competition for financing to small and medium-sized enterprises (SMEs)
Previously released:
- Written responses to the consultation on the proposed terms of reference
- News release: Competition Bureau to study competition in financing for Canada’s small and medium businesses
- Consultation on proposed terms of reference for a market study on competition for financing to small and medium-sized enterprises (SMEs)
The Competition Bureau has launched our market study of competition in the financing 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 or switching between lenders is challenging; and
- SMEs face higher borrowing costs than larger firms and this gap is larger in Canada than in other OECD countries.
The Bureau plans to examine three key topics as part of our study:
- the competitive dynamics in the SME financing sector;
- barriers to a lender’s entry or expansion in providing financing to SMEs; and
- barriers to SMEs switching from one lender to another.
In our final report, we will present our findings and make recommendations to relevant government authorities on steps they can take to improve competition for the benefit of SMEs, and the financial institutions seeking to lend to them. Increasing competition would help small and medium-sized enterprises access the funding they need, support greater productivity, and boost innovation across the economy.
How to contact us
The period to provide comments to the market study has closed. If you have any questions you can contact the market study team at smemarketstudy-etudedemarchepme@cb-bc.gc.ca.
Timeline
| Date | Action |
|---|---|
| September 4, 2025 | Launch of consultation on the market study’s terms of reference |
| October 3, 2025 | Deadline for comments on the market study’s terms of reference |
| October 31, 2025 | Final terms of reference submitted to the Minister of Industry for approval |
| December 22, 2025 | Received the approval of the final terms of reference from the Minister of Industry |
| January 12, 2026 | Official study launch with publication of the final terms of reference |
| February 27, 2026 | Deadline for contributions to the market study |
| Winter / Spring 2026 | Stakeholder engagement and research |
| Spring / Summer 2026 | Analysis of potential solutions and recommendations |
| Fall 2026 | Preparation and publication of the final report |
Role of the Competition Bureau
We are an independent law enforcement agency of the federal government. In addition to the work enforcing the Competition Act, we work to find ways to improve competition in Canada.
This study is not a law enforcement investigation. We are not examining any specific allegations of wrongdoing. However, if we do find evidence that someone may be doing something against the law, we will investigate and take appropriate action.
What is a market study?
Market studies allow the Bureau to look at the state of competition in a market and identify laws, regulations, policies or other factors that may affect competition. Through our market studies, the Bureau makes findings and provides evidence-based recommendations on how to increase competition in a sector.
To learn more about our market studies, please consult our Market Studies Information Bulletin.