BDC Financing — Commercial Real Estate Loan
Last Update: January 24, 2025
Canada
Loan to purchase real estate or expand facilities
BDC Financing — Commercial Real Estate Loan at a glance
Eligible Funding
- Up to 100% of project cost
Timeline
- Continuous Intakes
Financing Type
Loans and Capital investments
Eligible Industries
- Real estate and rental and leasing
Grant Providers
- Business Development Bank of Canada (BDC)
- Government of Canada
Status
Open
Overview of the BDC Financing — Commercial Real Estate Loan program
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.
Financing terms and conditions
This loan offers flexible financing modalities to ease the process of purchasing commercial real estate while minimizing initial financial burdens. These modalities are designed to improve cash flow management and cater to the specific needs of the business.
- Interest-only payments available for up to the first 36 months.
- Financing of up to 100% of the project cost, including downpayments and related expenses.
- Amortization periods of up to 25 years.
- Flexible repayment options tailored to match the business's cash flow cycle.
Eligible projects & activities
This loan offers financial support for businesses seeking to expand or improve their commercial real estate. Eligible activities are geared towards acquiring, constructing, or renovating commercial properties to enhance business operations.
- Purchasing commercial land or buildings.
- Funding construction costs for new commercial facilities.
- Expanding existing commercial premises.
- Renovating current business facilities to improve functionality or aesthetics.
- Replenishing working capital impacted by real estate expenditures.
Examples of admissible projects:
$ 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
Eligibility criteria of the BDC Financing — Commercial Real Estate Loan program
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.
Who is eligible?
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
Who is not eligible
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.
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.
Eligible geographic areas
This BDC commercial real estate loan is specifically designed for businesses based in Canada, aligning with the financial support objectives of the BDC for Canadian entrepreneurs. This ensures that Canadian companies have the resources needed to expand and invest in commercial real estate.
- Based in Canada
Eligibility criteria of the BDC Financing — Commercial Real Estate Loan program
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
How to apply to the BDC Financing — Commercial Real Estate Loan program
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.
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.
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.
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.
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.
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.
Additional information
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
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