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BDC Financing — Business purchase or transfer loan
Last Update: March 4, 2026
Canada
Business purchase or transfer financing
Loans and Capital investments
Overview
Get a repayable loan with terms tailored to your business if you are thinking of buying a company, making a merger or acquiring a competitor in order to expand your operations.
At a glance
Funding available
Financing goals
- Reduce the ecological footprint
- Renovate your business/factory
Eligible Funding
- No Condition
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
- Retail trade
- Accommodation and food services
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Newcomers to Canada
- Canadians
Activities funded
This grant supports activities aimed at facilitating business transitions and acquisitions for growth and expansion. Eligible projects focus on securing financing for purchasing, transitioning, or expanding business operations.
- Acquisition of fixed assets such as land, buildings, and equipment.
- Purchase of shares of an existing business.
- Executing a family succession or a management buyout (MBO).
- Refinancing vendor financing (vendor take-back).
- Acquisition of intangible assets including intellectual property, goodwill, and client lists.
Examples of admissible projects:
$ 750,000
Purchase industrial equipment for a new manufacturing line
$ 900,000
Buyout a local competitor to consolidate market presence
$ 450,000
Acquire intangible assets like goodwill and client lists
$ 400,000
Family succession buyout of a local bookstore
$ 800,000
Acquire shares of an existing business to expand service offerings
$ 1,000,000
Acquire a commercial property in downtown Toronto to expand operations
Eligibility
To qualify for this specialized loan program, businesses must meet certain criteria that ensure they are well-equipped to handle and benefit from the financial assistance provided.
- The business must have been generating revenues for 12 to 24 months.
- The loan is aimed at those looking to purchase or transfer a business, acquire fixed or intangible assets, or require working capital.
- Programs are available for Indigenous entrepreneurs and newcomers to Canada.
- The business should be in need of a financing solution tailored to specific needs, such as buying land, buildings, equipment, or shares in an existing business.
- The loan amount must be considered above $350,000 to take advantage of preferred terms and conditions.
- The applicant must demonstrate the need for a higher percentage of financing with payments matched to their cash flow.
Who is eligible?
Eligible applicants for the BDC loan offerings are primarily small and medium-sized businesses (SMEs) in Canada, including entrepreneurs and business owners looking to expand, acquire, or transition their businesses. This includes indigenous entrepreneurs and newcomers to Canada who are seeking financing solutions tailored to their business needs. The loans are designed for businesses generating revenues for 12-24 months and include support for inclusive entrepreneurship. Tech companies and businesses looking to purchase assets or buy out a company are also eligible. Additional financing solutions are available for asset-light companies through Growth & Transition Capital experts.Eligible expenses
The eligible projects for this grant are focused on facilitating business growth through strategic acquisitions and obtaining necessary assets. These activities aim to empower entrepreneurs to expand and strengthen their businesses.
- Acquisition of fixed assets such as land, buildings, equipment, and shares of an existing business.
- Securing financing for family succession, management buyout (MBO), or refinancing vendor financing (vendor take-back).
- Acquisition of intangible assets, including intellectual property, goodwill, and client lists.
Selection criteria
There are evaluation and selection criteria for this grant. The criteria include:
- Financial stability and creditworthiness of the applicant
- Purpose of the loan and its alignment with business growth
- Experience and track record of the business owner
- Potential impact of the loan on the business and the local economy
How to apply
1
Initial Evaluation
- Determine your eligibility by reviewing the loan criteria and conditions offered by BDC.
- Analyze your business situation to ensure that the loan type matches your business needs, such as acquisition, buyout, or purchase of assets.
2
Gather Necessary Documentation
- Compile financial statements such as income statements, balance sheets, and cash flow statements for the past 12-24 months.
- Prepare any additional documentation BDC may require specific to your loan type, such as business plans, market analysis, or asset appraisals.
3
Consultation with BDC
- Contact BDC to discuss your financing needs and receive guidance from their experts on the best loan options for your business situation.
- Schedule a meeting or consultation to understand the application process details and specific requirements for your loan type.
4
Application Submission
- Complete the formal loan application form, providing detailed business information and ensuring all fields are accurately filled.
- Submit the application along with the gathered documents either through the BDC online portal or as instructed during your consultation.
5
Await Decision
- Once submitted, wait for feedback or a decision from BDC regarding your application.
- Be prepared to provide additional information or clarification if requested by BDC during this review period.
Additional information
Here are additional relevant details for this loan:
- This loan offers tailored amounts to suit the specific needs of the applicant.
- Higher percentage of financing is available compared to other loans.
- Repayment terms are matched to the applicant's cash flow, providing flexibility.
- Preferred terms and conditions apply for loans over $350,000.
- Bespoke financial solutions are available for companies that do not possess significant tangible assets or require non-traditional financing options.
- Specific solutions are designed for Indigenous entrepreneurs and newcomers to Canada.
- Testimonials suggest a strong partnership and support system from BDC, emphasizing trust and transparency.
- Approval and conditions apply as per BDC guidelines.
