The best banks for small biz

Credit unions are the financial institution of choice for Canada’s small businesses, according to a report by the Canadian Federation of Independent Business.

More than 12,000 Canadian business owners rated their main lending institution in the areas of financing, fees and service. Credit unions scored highest and CIBC scored lowest for businesses in the micro (zero to four employees) and small (five to 49 employees) categories, while CIBC rated first in the midsize category (50 to 499 employees). HSBC had a strong showing across the board.

The report also tracks each bank’s change in the small business market share over the past 20 years. While RBC and National Bank have lost a quarter of their small business market share, CIBC has experienced a contraction of almost half. Scotiabank and credit unions nearly doubled their market share.

“When you consider that micro-size businesses alone account for more than three-quarters of the businesses in Canada, you would think that it would be in a bank’s best interest to serve them well, especially considering their role in job creation and economic growth,” says CFIB president Catherine Swift.