BDC Financing — Business Transition Loan
Canada
Business purchase or transfer financing
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Retail trade
- Accommodation and food services
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|projects
- Acquire fixed assets
- Buyout a business
- Acquire intangible assets
grant_single|admissibleProjectsExample
$450,000
Acquire intangible assets like goodwill and client lists
$750,000
Purchase industrial equipment for a new manufacturing line
$1,000,000
Acquire a commercial property in downtown Toronto to expand operations
$900,000
Buyout a local competitor to consolidate market presence
$400,000
Family succession buyout of a local bookstore
$800,000
Acquire shares of an existing business to expand service offerings
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
Eligible expenses include various business acquisition and growth-related costs.
- Acquiring fixed assets, such as land and buildings.
- Purchasing equipment.
- Buying shares of an existing business.
- Financing for a family succession or management buyout (MBO).
- Refinancing vendor financing options, such as vendor take-back.
- Acquiring intangible assets, including intellectual property, goodwill, and client lists.
grant_single_labels|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
grant_single_labels|register
- Step 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.
- Step 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.
- Step 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.
- Step 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.
- Step 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.
grant_single_labels|otherInfo
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.
Apply to this program
Exploring Your Business Expansion Financing Options
This loan program offers tailored financing solutions for businesses looking to expand through acquisitions or mergers. It supports entrepreneurs in their growth journey with flexible payment options that align with their cash flow and business needs.
Comprehensive Benefits and Features of Business Expansion Loans
For Canadian businesses eyeing growth through acquisition or merger, securing the right financing is a crucial step towards success. The Business Development Bank of Canada (BDC) offers a range of loan solutions tailored to meet the diverse needs of businesses aiming for strategic expansion. These loans can be pivotal whether you're planning to acquire fixed assets like land, buildings, and equipment or intangible assets such as intellectual property and client lists. Designed with flexibility in mind, these loans ensure your payments align with cash flow, granting you the peace of mind needed to focus on growth without financial strain.
The structured financial solutions provided by BDC are ideal for scenarios involving substantial business transformations, such as family successions or management buyouts (MBOs), where securing a financial foothold is essential. By offering a higher percentage of financing at preferred terms for loans over $350,000, BDC helps businesses navigate complex financial landscapes without compromising on their cash liquidity.
Furthermore, BDC’s loan programs are tailor-made, taking into account your business’s unique requirements and potential. The bank's specialists collaborate closely with business owners to determine optimal loan structures and repayment schedules that protect and foster growth at every stage. This approach not only alleviates immediate financial concerns but also strategically positions businesses for long-term success.
Entrepreneurs who are new to Canada or are Indigenous benefit from specialized support, reinforcing the inclusive nature of Canada’s economic environment. With an understanding that asset-light companies may require unconventional solutions, BDC’s Growth & Transition Capital team steps in to craft bespoke financial packages. These packages maintain the integrity of business ownership while providing necessary financial support—crucial for businesses in sectors like technology that might not have traditional assets.
Testimonials from business owners like Whitney Dudzic, Cathie Saroka, and Stephen Callaghan underscore the transformative impact of BDC’s financing solutions. These success stories highlight how personalized financial guidance and unwavering support from BDC have empowered business leaders to not only manage transitions smoothly but to also achieve significant growth and market presence.
Beyond monetary support, BDC acts as a steadfast partner, offering consultation and guidance throughout the acquisition or merger process. This client-focused approach ensures businesses can fully leverage acquired assets, unlocking new growth avenues while solidifying existing operations.
In summary, for businesses considering expanding through acquisition or merger, BDC offers comprehensive financing solutions tailored to meet their specific needs and circumstances. By fostering a supportive ecosystem through expert advice and optimal financing structures, BDC enables businesses to navigate the challenges of business transitions and expansions with confidence and success.
