BDC Financing — Business purchase or transfer loan

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 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.

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

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.