Open
BDC Capital — Growth & Transition Capital — Buying a business
Funding for entrepreneurs to buy an established business
Last Update: March 4, 2026
Funding available
Varies by project
Timeline
- Open Date : June 27, 2022
Location
Canada
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
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Complete an acquisition or business transfer
Eligible Funding
- Varies by project
Timeline
- Open Date : June 27, 2022
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
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.
Eligibility
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.
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
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.
What is the BDC Capital — Growth & Transition Capital — Buying a business?
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
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.
What expenses are eligible under BDC Capital — Growth & Transition Capital — Buying a business?
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.
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).
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.
Is the BDC Capital — Growth & Transition Capital — Buying a business a grant, loan, or tax credit?
BDC Capital — Growth & Transition Capital — Buying a business is a Loans and Capital investments
Who are the financial supporters of the BDC Capital — Growth & Transition Capital — Buying a business?
BDC Capital — Growth & Transition Capital — Buying a business is funded by Business Development Bank of Canada (BDC), Government of Canada