Open
Source verified July 10, 2026
BDC Capital — Growth & Transition Capital — Buying a business
Flexible financing for business growth and transitions
Funding available
$ 250,000 - $ 35,000,000
Deadline
Open continuously
Opened June 27, 2022
Location
Canada
Overview
BDC Growth & Transition Capital offers financing from $250,000 to $35M to mid-market and high-revenue Canadian companies seeking flexible capital for growth and ownership transitions. It supports mezzanine, cash flow, quasi-equity, monthly recurring revenue and unitranche solutions for acquisitions, working capital and business transfers.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Complete an acquisition or business transfer
Eligible Funding
- Maximum amount : 35,000,000 $
- Minimum amount : 250,000 $
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- 2SLGBTQI+
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Growth initiatives that require working capital, including R&D, product and market development, intangible assets and goodwill.
- Buying a business, including a competitor’s or supplier’s business.
- Transferring a business, including family successions, management and partner buyouts, and management buy-ins.
Official resources
Eligibility
Who is eligible?
- Mid-market and high-revenue Canadian companies
- Established businesses
- High-growth businesses
- Businesses that have been in operation at least 12 months
- Canadian citizens or permanent residents who have reached the age of majority in the province or territory in which they live
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
- Apply online.
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.
Contacts
Frequently Asked Questions about the BDC Capital — Growth & Transition Capital — Buying a business Program
What is the BDC Capital — Growth & Transition Capital — Buying a business?
BDC Growth & Transition Capital offers financing from $250,000 to $35M to mid-market and high-revenue Canadian companies seeking flexible capital for growth and ownership transitions. It supports mezzanine, cash flow, quasi-equity, monthly recurring revenue and unitranche solutions for acquisitions, working capital and business transfers.
How much funding can be received?
BDC Capital — Growth & Transition Capital — Buying a business Funds up to $35,000,000 of admissible expenses.
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:
Established or high-growth business
Strong management team
Quality financial reporting
What expenses are eligible under BDC Capital — Growth & Transition Capital — Buying a business?
Growth initiatives that require working capital, including R&D, product and market development, intangible assets and goodwill.
Buying a business, including a competitor’s or supplier’s business.
Transferring a business, including family successions, management and partner buyouts, and management buy-ins.
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) or by phone at 1-877-232-2269.
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