CSBFP for pet grooming, boarding, and veterinary practices.

Why CSBFP fits pet services businesses

The pet services sector has grown significantly over the past decade, and the capital profile of these businesses aligns well with CSBFP’s eligible categories. A grooming salon requires a purpose-built fit-out with specialized plumbing, bathing equipment, and ventilation. A dog daycare or boarding facility requires kennel construction, drainage, flooring, and climate control. A veterinary clinic requires diagnostic equipment, surgical facilities, and pharmaceutical-grade storage.

None of these investments are inexpensive, and most cannot be easily relocated or repurposed. They are precisely the kind of committed capital expenditure that CSBFP’s leasehold and equipment categories are designed to support.

Eligible CSBFP costs by sub-sector

Grooming salons

A dog or cat grooming salon has a capital-intensive fit-out relative to its square footage. Eligible CSBFP costs include:

• Leasehold improvements: Plumbing installation for grooming tubs and wash stations (dedicated hot-water capacity, floor drains), electrical upgrades for dryers and clippers, wall finishes suited to a wet environment (FRP panels, epoxy paint), interior partitioning for grooming bays and waiting areas
• Equipment: Stainless-steel grooming tubs and bathing systems (hydraulic-lift tubs are capital assets), commercial high-velocity dryers, grooming tables (hydraulic lift tables), kennel dryer cages, kennel runs permanently installed in the space
• Software:Grooming management software (booking, client records, inventory) — eligible under CSBFP’s intangibles/software category, up to the $150K sub-limit

Dog daycare and boarding facilities

Dog boarding and daycare facilities have the most significant leasehold investment of any pet services sub-sector. A properly built facility requires construction that the landlord’s base space almost never provides. Eligible CSBFP costs:

• Kennel runs and indoor enclosures: Permanently installed kennel structures (chain-link or modular kennel panels bolted to floors and walls, concrete runs, drainage channels) are capital assets eligible as leasehold improvements
• Flooring and drainage: Epoxy or sealed concrete flooring with sloped drainage, floor drains installed throughout the facility — a code requirement and a significant capital cost
• HVAC and ventilation: High-turnover ventilation systems (often 15–20 air changes per hour for a boarding facility) and climate control — the base building HVAC is typically inadequate
• Outdoor play areas: Fencing, turf, concrete runs, and shade structures installed as permanent improvements to the leased or owned property
• Equipment: Washing machines and dryers for bedding, surveillance and monitoring systems (permanently installed cameras and monitoring hardware), fire suppression system upgrades required for the occupancy type

Veterinary practices

Veterinary clinics are eligible for CSBFP on the professional services model. Equipment-heavy files at or near the $500K non-real-property sub-limit are common for multi-doctor practices. Eligible costs include:

• Diagnostic equipment: Digital X-ray systems (DR panels and CR readers), ultrasound units, dental radiography equipment, in-house laboratory analyzers (haematology, biochemistry, urinalysis)
• Surgical and treatment equipment: Anaesthesia machines and monitoring equipment, surgical tables (hydraulic lift), autoclave sterilization units, endoscopy equipment, ophthalmic equipment
• Practice management software: Veterinary practice management software (Avimark, ezyVet, Cornerstone) — eligible under the software sub-limit
• Leasehold improvements: Clinic fit-out (examination rooms, surgical suite, recovery area, pharmacy storage), X-ray room construction (lead-lined walls), isolation ward construction, proper pharmaceutical storage facilities

For veterinary practices, provincial licensing requirements (the provincial veterinary association sets facility standards for practice registration) drive significant leasehold cost. A newly built clinic that meets CVMA/provincial college standards is a credible CSBFP leasehold file.

Dog training centres

Dog training facilities — group obedience classes, agility training, and behaviour rehabilitation — have modest equipment requirements but significant leasehold investment in the training floor. Eligible costs:

• Training floor surface (rubber or turf flooring as a permanent installation)
• Agility equipment installed as fixtures (weave poles bolted to the floor, contact obstacles permanently positioned)
• Perimeter fencing and safety barriers (permanently installed)
• Sound system and training area lighting installed as leasehold improvements

Revenue modelling for pet services files

Lenders on pet services files model revenue differently by sub-sector:

• Grooming: Appointments per day × revenue per appointment × operating days. Lenders look for evidence of existing clientele (for an established operator expanding) or a realistic ramp based on the market (for a new location). Grooming is appointment-based — revenue is relatively predictable once the book is established.
• Boarding/daycare: Licensed capacity × occupancy rate × daily rate. Lenders scrutinize the occupancy assumption — a new facility projecting 90% occupancy in month 3 will be questioned. A ramp model showing 40% occupancy in month 3, 60% by month 9, and 80% at steady state is more credible. Occupancy varies significantly by season (high in summer/ holidays, lower in shoulder periods) — the projection should reflect seasonal variation.
• Veterinary: Appointments per week × revenue per appointment (broken down by service type). For an established practice being acquired or expanded, historical revenue from the clinic is the primary evidence. For a new practice, the number of registered patients projected in year 1 is the key assumption.

Licensing and regulatory considerations

Pet services businesses face varying regulatory requirements by province and municipality:

• Animal boarding/kennel licences:Most municipalities require a kennel or animal facility licence for boarding operations. Some zoning bylaws restrict boarding facilities in certain commercial zones. Confirming municipal zoning approval before signing a lease is critical — a CSBFP application for a boarding facility in a zone that doesn’t permit it will be declined when the lender reviews the licence.
• Veterinary practice registration:Practice registration with the provincial veterinary medical association (CVMA member associations) is required. The practice must meet the college’s facility standards. A file that shows pre-approval from the college (or the application in progress) is in a stronger position than one where licensing hasn’t been addressed.
• Building and fire occupancy: Boarding facilities with live-in animals trigger specific occupancy classifications under the National Building Code. Some facilities require overnight staff. Confirming occupancy classification and fire protection requirements before finalizing the project budget avoids mid-project cost surprises.

A worked example: dog daycare and boarding facility

An experienced dog trainer opens a 3,000 sq ft dog daycare and boarding facility with 40 kennel runs, a daycare floor area, and a bathing station. Ten-year lease. Project:

• Kennel construction (40 runs, drains, flooring): $120,000
• HVAC upgrade (high-turnover ventilation): $45,000
• Outdoor play yard (fencing, concrete, turf): $35,000
• Daycare floor surface and safety gates: $20,000
• Bathing station (plumbing, tub, equipment): $25,000
• Total leasehold and equipment: $245,000

Equity injection: $30,000 (12%). CSBFP loan: $215,000. LOC: $40,000 for pre-opening working capital. Lease: 10 years ✓. Structure check: $245,000 non-RP — inside the $500K sub-limit ✓.

Revenue projection at 12-month steady state: 40 kennels at 70% occupancy = 28 boards per night × $55/night = $1,540/night; 15 daycare spots × $35/day × 250 days = $131,250 annually. Total revenue approximately $693,050. After operating costs (wages, rent, utilities, insurance): EBITDA approximately $185,000. Annual debt service (term loan at 7.95%, 8-year amortization, plus LOC): approximately $39,000. DSCR: 4.7x. The key file risk is occupancy ramp and the municipal licensing confirmation.