
BDC Financing — Equipment Purchase Loan
Last Update: July 22, 2025
Canada
Flexible government financing for equipment and business modernization
BDC Financing — Equipment Purchase Loan at a glance
Eligible Funding
- Up to 125% of project cost
Timeline
- Open Date : November 14, 2019
Financing Type
Loans and Capital investments
Eligible Industries
- Manufacturing
- Transportation and warehousing
Funds Providers
- Business Development Bank of Canada (BDC)
- Government of Canada
Program status
Open
Overview of the BDC Financing — Equipment Purchase Loan program
The BDC Financing — Equipment Purchase Loan provides up to 125% financing to support the acquisition of new or used equipment, computers, and specialized instruments, including related costs such as transport, installation, and training. This program aims to help businesses increase production capacity, improve operational efficiency, or replenish working capital depleted by equipment expenses.
Financing terms and conditions
- Financing of up to 125% of the equipment purchase cost, which can also cover related expenses such as transportation, installation, and training.
- Repayment term of up to 12 years for the loan.
- Possible deferral of principal repayments for up to 24 months.
Eligible projects & activities
- Expansion or modernization of business operations through the purchase of new or used equipment.
- Replacement of outdated machinery to increase production capacity.
- Implementation of automated tools, robotics systems, or specialized instruments to enhance productivity.
- Investment in commercial vehicles to improve operational efficiency.
- Acquisition of computers or IT equipment to support business growth.
Examples of admissible projects:
$ 437,500
Purchase modern manufacturing equipment to increase production capacity
$ 218,750
Acquire specialized lab equipment to enhance research capabilities
$ 212,500
Acquire new theater equipment to enhance community cultural activities
$ 187,500
Upgrade production line with new automated machinery for increased efficiency
$ 412,500
Purchase a fleet of electric delivery vehicles to modernize our delivery operations
$ 175,000
Invest in new IT infrastructure to streamline business operations
Eligibility criteria of the BDC Financing — Equipment Purchase Loan program
- The applicant must be seeking financing to purchase new or used equipment, vehicles, or computers for business operations.
- The financing request must be related to expanding, modernizing, or replacing business machinery or equipment.
- The project should aim to increase production capacity, improve operational efficiency, or support specialized activities through equipment acquisition.
Who is eligible?
- Companies seeking to purchase new or used equipment
- Businesses looking to acquire computers or IT equipment
- Firms planning to invest in production machinery, automation, or robotics
- Enterprises needing to modernize operations, including the purchase of commercial vehicles
- Organizations requiring specialized instruments or laboratory equipment
Eligible expenses
- Purchase of new or used equipment for production.
- Acquisition of automated tools, robotics systems, and specialized instruments such as laboratory equipment.
- Purchase of computer hardware.
- Purchase of commercial vehicles.
- Transportation and installation fees related to equipment.
- Training expenses linked to the use of new equipment.
Eligible geographic areas
- Companies located in Canada.
How to apply to the BDC Financing — Equipment Purchase Loan program
1
Initial Inquiry
- Contact a BDC representative to discuss your equipment financing needs and eligibility.
- Gather preliminary information on potential financing solutions tailored to your business.
2
Application Preparation
- Collect necessary financial documents such as recent financial statements, business plan, and equipment purchase details.
- Outline the purpose of the equipment purchase and how it will benefit your business.
3
Complete Application Form
- Access the BDC online application portal or request a paper form, if available.
- Fill out the application form with accurate business information and financial data.
4
Submit Application
- Upload or send your completed application form along with all required documents through the BDC portal or via mail.
- Ensure all sections are complete and documents are attached before submission.
5
Application Review
Wait for the BDC to review your application. They may contact you for further information or clarification.
6
Approval and Funding
- Receive notification of approval and review the loan terms and conditions if your application is successful.
- Once terms are agreed, access the funds as per the disbursement schedule outlined by BDC.
Additional information
- Possibility to adjust payments based on the company's cash flow.
- Alternative financing solutions may be recommended based on specific needs.

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