BDC Capital — Growth & Transition Capital — Buying a business

Q: How much funding can be received?

There is no informations about how much funding can be received.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Who is eligible for the BDC Capital — Growth & Transition Capital — Buying a business program?

To be eligible for the BDC Capital — Growth & Transition Capital — Buying a business program, you must: • The business to be acquired must be established or high-growth. • The business must have a strong management team. • The business must demonstrate quality of financial reporting.

Q: Who can I contact for more information about the BDC Capital — Growth & Transition Capital — Buying a business?

You can contact Business Development Bank of Canada (BDC).

Q: Where is the BDC Capital — Growth & Transition Capital — Buying a business available?

The BDC Capital — Growth & Transition Capital — Buying a business program is available across Canada.

Last Update: July 22, 2025

Canada

Funding for entrepreneurs to buy an established business

At a glance

Eligible Funding

No Condition

Timeline

Open Date : June 27, 2022

Financing Type

Loans and Capital investments

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Open

Overview

Get repayable financial support of up to $35 million to increase your working capital to buy a competitor's or supplier's business. You can also obtain guidance and support from a team of experienced professionals to help you find the optimal financing st

Financing terms and conditions

This grant provides comprehensive and flexible financing options to support business acquisition projects without diluting ownership. The available financing modalities are designed to accommodate different business needs and structures.

Mezzanine financing offers repayment terms that can be customized to align with the business's cash inflows, protecting working capital.
Financing amounts range from $250,000 to $35 million, facilitating significant business acquisition projects.
Loan repayment is structured over a period of 2 to 8 years, with an option to postpone capital payments for the first 12 months.
Mezzanine financing is ideal for financing the goodwill component and bridging financing gaps between various sources such as senior debt or vendor take-back.
Security is subordinated to allow increased borrowing power and maintain management independence.
Cash flow financing is available for acquisitions, particularly for targeted companies demonstrating strong cash flow histories.

Activities funded

This grant offers financial assistance for the acquisition of businesses, specifically tailored to those with growth potential and a solid management team. The financing solutions are designed to be flexible and cater to varying business acquisition needs.

Acquiring an established or high-growth business.
Purchasing a competitor's or supplier's business.

Examples of admissible projects:

$ 3,500,000

Purchase of a tech startup business

$ 5,000,000

Acquisition of healthcare provider facilities

$ 3,000,000

Purchase and integration of a key supplier's operations

$ 2,500,000

Merger with a financial cooperative

$ 3,000,000

Acquisition of an agricultural supplier business

Eligibility

Eligibility for accessing Growth & Transition Capital for business acquisitions is determined by certain criteria related to the business and proposed financing model.

The business involved in the acquisition project must be established or in a high-growth phase.
The business must possess a strong management team.
There must be a demonstration of quality financial reporting.
The company targeted in the acquisition must have a consistent track record of positive and strong cash flow.

Who is eligible?

Eligible companies for this grant are typically established or high-growth businesses with a strong management team and quality financial reporting.

Established or high-growth businesses
Strong management team
Quality financial reporting

Eligible expenses

This grant is designed to support business acquisition projects by providing customized financing solutions that align with the buyer's growth strategy. Eligible activities focus on leveraging growth and transition capital to facilitate strategic acquisitions by minimizing ownership dilution.

Financing acquisition of established or high-growth businesses with strong management and robust financial reporting.
Utilization of mezzanine financing to cover goodwill and bridge financial gaps between various sources.
Applying cash flow financing for acquisitions of companies demonstrating consistent positive cash flow results.

Selection criteria

There are evaluation and selection criteria for this grant. The criteria include:

The business is established or high-growth
Has a strong management team
Demonstrates quality of financial reporting

How to apply

Assess Eligibility

Review the financing solutions offered to determine if your business acquisition project is eligible based on criteria such as being an established or high-growth business, having a strong management team, and demonstrating quality financial reporting.

Prepare Financial Proposal

Work with Growth & Transition Capital experts to develop a feasible and beneficial financial package suited to your needs.
Include details on the funding amount required, which can range from $250,000 to $35M.
Outline your preferred financing solution, either Mezzanine financing or Cash flow financing, based on your specific project requirements.

Detailed Financial Documentation

Compile necessary financial documents demonstrating the business’s consistent track record of positive cash flow if opting for cash flow financing.
Prepare any additional supporting documentation that outlines the financial health and potential of your acquisition target.

Online Application Submission

Access the online application portal via the financing service provider’s website.
Complete the application form providing all requested information related to your business and the acquisition project.
Upload your detailed financial proposal and any supporting documentation.
Submit the completed application ensuring all sections are filled in accurately.

Await Confirmation and Follow-Up

Receive confirmation of your application submission, including any application reference number for tracking purposes.
Follow up as needed for any additional information or documentation requested by the financing team.

Additional information

Here are additional relevant details for this grant:

Customized mezzanine financing is available to protect working capital.
Capital payments can be postponed for the first 12 months, aiding cash flow management.
Repayment terms can be aligned with the company's cash inflows, including options such as balloon payments and cash flow sweeps.
The security of loans is subordinated, providing more borrowing power.
No involvement in business management from lenders, allowing current management to retain control.
Financing solutions range from $250,000 to $35 million.

Documents and links

BDC Capital — Growth & Transition Capital — Buying a business

Apply to this program

Frequently Asked Questions about the BDC Capital — Growth & Transition Capital — Buying a business Program

Here are answers to the most common questions about the BDC Capital — Growth & Transition Capital — Buying a business. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.