BDC Financing — Commercial Real Estate Loan
Canada
Loan to purchase real estate or expand facilities
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Real estate and rental and leasing
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 long-term loan with terms of up to 25 years to purchase land or buildings, construct or expand premises, or replenish working capital depleted by real estate costs.
grant_single_labels|projects
There are eligible activities for this grant:
- Increase capacity
- Upgrade facilities
- Complement your line of credit
grant_single|admissibleProjectsExample
$400,000
Expanding retail store space to increase inventory and improve customer experience
$200,000
Expanding and renovating our social enterprise's workspace to accommodate more community services
$280,000
Purchase of land to establish a community garden and urban farm
$700,000
Purchasing land to build a new manufacturing facility for increased production capacity
$560,000
Expanded warehouse space for increased inventory capacity and distribution efficiency
$280,000
Upgrading the cooperative’s office facilities to support digital transformation efforts
grant_single_labels|admissibility
Eligibility for this loan program is based on specified criteria related to the business's profile and financing requirements.
- The business must have been generating revenues for 12-24 months.
- The applicant's project must not be related to the construction or operation of private schools, retirement homes, or residential development projects.
- The loan is available up to 100% financing for the project costs.
- The loan term can be up to 25 years, with the possibility of postponing principal payments for up to 36 months.
- The applicant can demonstrate the need for a commercial real estate loan or financing to increase capacity, upgrade facilities, or complement their line of credit.
grant_eligibility_criteria|who_can_apply
There are several eligible types of companies for this grant:
- Small businesses
- Commercial real estate companies
- Tech companies
- Start-ups
- Companies looking to purchase or transfer businesses
grant_eligibility_criteria|who_cannot_apply
This loan application has specific exclusions based on certain activities or industries. The restrictions ensure alignment with the strategic focus and responsible investment approach of the financial institution.
- Construction or operation of private schools.
- Businesses involved in retirement homes.
- Residential development projects.
grant_eligibility_criteria|eligible_expenses
This grant provides opportunities for businesses to grow through acquiring or upgrading commercial real estate, enhancing capacity, and supplementing financial resources. Projects eligible for this grant are centered around strategic expansions and operational upgrades.
- Purchasing land and commercial buildings or covering construction costs for new infrastructure.
- Upgrading and renovating existing facilities to increase business capacity.
- Expanding current premises to support business growth.
- Replenishing working capital exhausted by real estate-related expenses.
- Covering additional costs such as those associated with relocating facilities.
grant_eligibility_criteria|zone
The loan covers various expenses related to commercial real estate and business expansion.
- Purchase of land and buildings.
- Construction costs for new facilities.
- Expansion or renovation of existing premises.
- Replenishment of working capital depleted by real estate costs.
- Moving and additional expenses related to real estate expansion.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant.
- Alignment of the project with the grant's objectives
- Demonstrated capacity to meet the project milestones
- Potential economic impact of the project
- Feasibility and sustainability of the project
grant_single_labels|register
Here are the steps to submit an application for the BDC commercial real estate loans:
- Step 1: Preliminary Consultation
- Contact a BDC representative to discuss your specific business needs and eligibility.
- Gather detailed information about your commercial real estate project or expansion plans.
- Step 2: Initial Assessment
- Provide BDC with basic financial and business information for a preliminary assessment.
- Discuss potential loan terms and conditions that match your business requirements.
- Step 3: Application Preparation
- Prepare a detailed project proposal outlining your plans for purchasing or upgrading real estate.
- Collect necessary financial documents, such as business financial statements and cash flow projections.
- Ensure you have personal and business identification documents ready if required.
- Step 4: Application Submission
- Complete the BDC loan application form, ensuring all information is accurate and up-to-date.
- Submit your application form along with all supporting documents to BDC, either online or at a local branch.
- Step 5: Review and Feedback
- Await feedback from BDC regarding the status of your application.
- Be prepared to provide additional information or clarifications if requested by the BDC assessment team.
- Step 6: Approval and Agreement
- Once approved, review the loan terms and conditions offered by BDC.
- Sign the financing agreement to formalize your commitment to the terms.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The loan package includes up to 36 months of principal payments postponement at the start of the loan.
- Flexible loan terms allow matching payments to the business's cash flow cycle.
- Extra financing is available to cover additional expenses such as moving costs.
- Loan terms and conditions remain stable and only change with due cause.
- The experience shared by previous clients highlights the supportive nature of the BDC's relationship.
Apply to this program
Unlocking Business Expansion with Commercial Real Estate Loans
Gain the financial support needed to expand your capacity and grow your business with our Commercial Real Estate Loan. Designed to meet the needs of businesses at various stages of development, this loan provides flexible financing solutions to assist in purchasing land, constructing new facilities, or upgrading existing ones.
Empowering Business Growth Through Strategic Financing
The Business Development Bank of Canada (BDC) offers a targeted Commercial Real Estate Loan aimed at aiding businesses looking to expand their physical footprint. Understanding the complexities involved in purchasing commercial property, BDC provides comprehensive support to alleviate the financial burdens associated with such undertakings. Businesses that have been generating revenues for 12 to 24 months can access financing up to 100% of project costs, subject to approval and certain conditions.
The loan is tailored to encourage and facilitate expansion by offering options to purchase existing property, cover construction costs for new buildings, or renovate current facilities. This adaptability allows businesses to align their real estate strategies with their long-term goals, whether looking to increase production capacity, create a new avenue for customer engagement, or simply modernize their operations.
An advantageous feature of this loan is its repayment terms, which extend up to 25 years, providing manageable installment options that align with the cash flow cycles of a business. Furthermore, enterprises can benefit from postponing principal payments for up to 36 months at the start of the loan, offering much-needed liquidity to focus on initial growth and operational setup without the immediate pressure of full financial obligations.
For businesses in need of additional capital beyond real estate costs, the BDC offers extra financing options to cover expenses such as moving costs, thereby ensuring minimal disruption during transitions or expansions. This added financial relief enables businesses to maintain their day-to-day operations and avoid disruptions commonly associated with expansion phases.
Beyond financial products, BDC's real estate loan offers peace of mind through consistent support and stable terms and conditions that do not change arbitrarily, allowing businesses to plan confidently for the future. By working with BDC, businesses can leverage a wealth of expertise and resources, including assessments of financial performance and potential growth opportunities within the Canadian economic landscape.
In particular, inclusive entrepreneurship loans are available, catering to Indigenous entrepreneurs and newcomers to Canada, recognizing the diversity of Canada's business ecosystem and ensuring equitable access to growth opportunities. Testimonials from business leaders like Matthew Ramey, President of West Coast Monograms, describe BDC as a crucial partner in navigating growth, providing the necessary funds, guidance, and connections critical for successful expansion.
This loan represents not just financial assistance, but a strategic partnership aimed at supporting businesses to become leaders in their respective industries. By choosing BDC's Commercial Real Estate Loan, businesses can secure the funding necessary to scale operations, enhance competitiveness, and achieve long-term success.
