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BDC Capital — Growth & Transition Capital — Buying a business

Flexible financing for business growth and transitions

Offered by
Business Development Bank of Canada (BDC)
Official source: bdc.ca

Source change captured

Funding available
$ 250,000 - $ 35,000,000
Deadline
Unspecified
Location
Canada
Who can apply
Mid-market and high-revenue Canadian companies
See full eligibility

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.

At a glance

Funding available

Maximum funding
$35,000,000
Minimum funding
$250,000
Financing goals
  • Complete an acquisition or business transfer

Eligible candidates

Location
  • Canada
Eligible Industries
All industries
Annual revenue
All revenue ranges
Organisation size
All organization sizes
Audience
  • 2SLGBTQI+
Legal structures
For-profit business

Start applying for this program

Take a practical assessment to gain a clear understanding of how well this program aligns with your specific needs and long-term goals.

Availability timeline

2023
Periods: 1

Latest changes

Loan Form Question Updated

The business loan information request form now asks when funds should be available, and its navigation labels were simplified.

See more

The Business loan information request form changed one project-planning question from when funds are needed to when the applicant would like the funds to be available. The form’s navigation controls were also shortened from Previous Step and Next Step to Previous and Next, with no visible change to the submission endpoint or required documents.

Official source: bdc.ca
September 28, 2026

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.

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.

How to apply

  • Apply online

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

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

1-877-232-2269

Official sources

Customized financing to buy a business

Application form

Business loan information request
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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?

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.

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