BDC Financing — Small Business Loan
Canada
Loan for small business owners
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Retail trade
- Information and cultural industries
- Professional, scientific and technical services
- Other services (except public administration)
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Apply online for a business loan of up to $100,000 with flexible repayment terms. Use this financing to supplement cash flow, improve operations, or cover expenses for your small business.
grant_single_labels|projects
There are several projects or activities eligible for this small business loan:
- Supplement cash flow
- Purchase equipment, software, or hardware without using cash needed for everyday activities
- Sell online to increase sales
- Upgrade your website, purchase inventory, run marketing campaigns, hire a consultant
- Cover expenses for suppliers, landlords, and employees
grant_single|admissibleProjectsExample
$75,000
Ottawa
Upgrade office equipment to enhance productivity and operational efficiency
$85,000
Vancouver
Purchase inventory to prepare for seasonal demand and prevent stockouts
$50,000
Montreal
Hire a consultant to streamline our supply chain and reduce operational costs
$60,000
Calgary
Run a comprehensive marketing campaign to increase brand awareness
$75,000
Toronto
Upgrade e-commerce platform to expand online presence and increase sales
$100,000
Quebec City
Supplement cash flow to maintain operations during the off-peak season
grant_single_labels|admissibility
You could be eligible for a small business loan if you have reached the age of majority in the province or territory in which you live and if your business:
- Is based and registered in Canada
- Has a good credit history
- Has been operating and generating revenue for at least 2 years
grant_eligibility_criteria|who_can_apply
Eligible types of companies for this small business loan must meet specific criteria. Companies must have been operating for at least 2 years, be registered in Canada, and possess a good credit history.
- Based and registered in Canada
- Operating and generating revenue for at least 2 years
- Good credit history
grant_eligibility_criteria|who_cannot_apply
Yes, there are certain types of companies that are not eligible for this grant:
- Companies that are not based and registered in Canada.
- Businesses that have not been operating and generating revenue for at least 2 years.
- Firms with shareholders owning 25% or more who do not live in Canada and do not follow specific guidelines.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include supplementing cash flow, purchasing equipment, software, or hardware without using cash needed for everyday activities, as well as expenses related to selling online, upgrading your website, purchasing inventory, running marketing campaigns, hiring consultants, and covering operational costs.
- Supplement cash flow
- Purchase equipment, software, or hardware
- Sell online
- Upgrade your website
- Purchase inventory
- Run marketing campaigns
- Hire a consultant
- Pay suppliers
- Pay landlords
- Pay employees
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Canada. The business must be based and registered in Canada to apply.
- Canadian-based businesses
- Registered in Canada
grant_single_labels|criteria
The evaluation and selection criteria for the BDC’s small business loan involve meeting eligibility requirements and passing the due diligence review.
- Canadian-based business with operating revenues for at least 24 months
- Company’s shareholders must have reached the age of majority
- Good credit history for the company and its shareholders
- Completion of the online loan application process
- Authorization and consent from required individuals
- Provision of necessary business and personal information
grant_single_labels|register
- Step 1: Verify your eligibility
- Ensure your business is based and registered in Canada
- Confirm your business has a good credit history
- Check that your business has been operating and generating revenue for at least 2 years
- Step 2: Apply online, hassle-free
- Go to the application page
- Follow the steps to complete the online application form
- Create a Client Space account if you don’t have one
- Save your work at various points if needed
- Step 3: Complete business and personal information
- Upload complete and up-to-date business information as listed in your business registry
- Provide names, email addresses, home address, and mobile phone numbers for the company’s president, members of the board of directors, and shareholders
- Upload a business void cheque or a completed Pre-Authorized Payment (PAP) form
- Provide 1 piece of government-issued photo ID
- Step 4: Provide consents
- Obtain consents from shareholders owning 25% or more of the business
- Obtain consent from one person from the Board of Directors as a signatory of the loan agreement (President of the Board in Quebec or designated member in the rest of Canada)
- Step 5: Complete digital ID verification step
- Provide your Driver’s License or Passport
- Upload a selfie for digital identification
- Upload your ID for BDC file records
- Step 6: Receive your offer (if approved)
- Log in to your Client Space account to view your loan offer
- Confirm and accept the loan offer if your business qualifies
- Step 7: Complete and sign all related documents
- Resend email invitation for signatures if necessary
- Ensure all required individuals sign the documents to finalize the process
- Step 8: Receive your funds
- The loan amount will be disbursed to your business account once all steps are completed
grant_single_labels|otherInfo
The BDC’s small business loan provides Canadian businesses with flexible funding options and various benefits to help grow and sustain their operations. Here are some additional details:
- No application fees are charged for applying for the loan.
- The interest rate is a combination of the current floating base rate and variance based on personal and business information.
- The repayment period is 60 months, with interest-only payments for the first six months.
- An annual loan management fee of $150 applies once the loan is accepted.
- A $150 transaction fee applies for any amendments to the loan.
grant_single_labels|contact
1-800-974-0005
Apply to this program
BDC Small Business Loan: Your Gateway to Flexible Financing
BDC offers a streamlined small business loan of up to $100,000 with no application fees, flexible payment terms, and a simple online application process. Designed for Canadian businesses, this loan aims to improve cash flow, fund equipment purchases, and support business growth efficiently and effectively.
Comprehensive Guide to BDC's Small Business Loan
For many small businesses in Canada, access to quick and flexible financing options can mean the difference between growth and stagnation. Business Development Bank of Canada (BDC) offers a Small Business Loan that not only addresses this need but does so in a manner that's both streamlined and attainable. This guide delves into the specifics of the BDC Small Business Loan, outlining its benefits, eligibility criteria, application process, and other essential details.
1. Introduction to BDC Small Business Loan
The BDC Small Business Loan is designed to provide Canadian businesses with the financial support they need to seize opportunities and overcome challenges. Whether it's supplementing cash flow, purchasing equipment, or covering essential expenses, this loan offers up to $100,000 with terms that accommodate the unique needs of small businesses.
2. Key Features and Benefits
- Online Application: Apply quickly and easily through the BDC website without the need for a physical visit.
- No Application Fees: There are no upfront application fees, making it more accessible for businesses to seek funding.
- Flexible Repayment: Enjoy postponed principal payments for the first six months and repay the loan over a five-year period.
- Affordable Rates: Benefit from competitive interest rates that are calculated based on your personal and business information.
- No Penalties: Avoid penalties for early or lump-sum repayments, allowing you to manage your finances with greater flexibility.
3. Eligibility Criteria
To qualify for the BDC Small Business Loan, applicants must meet the following conditions:
- The business must be based and registered in Canada.
- The business should have a good credit history.
- It must have been operating and generating revenue for at least two years.
- All shareholders owning 25% or more of the business must provide their consent.
4. Loan Details
Maximum Amount: Businesses can request up to $100,000. The actual amount approved will depend on BDC’s analysis of the loan request.
Interest Rate: The interest rate is determined by the current floating base rate plus a variance based on personal and business information, resulting in a tailored rate for each client.
Repayment Period: The loan is repaid over 60 months. For the first six months, only the interest portion is due, with principal payments starting in the seventh month.
Fees: While there are no application fees, standard BDC administration fees and an annual loan management fee of $150 apply. Amendments to the loan incur a transaction fee of $150 per amendment.
5. Application Process
The application process for the BDC Small Business Loan is designed to be straightforward and efficient:
- Eligibility Verification: Determine if your business meets the eligibility criteria outlined by BDC.
- Information Submission: Provide detailed business and shareholder information, including the business registry, names, email addresses, and mobile phone numbers of the company's president, board members, and major shareholders.
- Client Space Account: Create a BDC Client Space account to manage the application process. Each required individual must have a separate account for two-factor authentication.
- Document Upload: Upload necessary documents such as a government-issued photo ID, business void cheque, and other relevant information.
- Consent and Verification: Obtain consent from all required individuals and complete digital ID verification steps, including a selfie and ID upload for security purposes.
- Receive Offer: If approved, review and accept the loan offer within your Client Space account. Sign all required documents to finalize the loan agreement.
- Funds Disbursement: Upon acceptance, receive the funds in your business account and start using them as needed for your business operations.
6. Managing Your Loan
Once your loan is approved and funds are received, you can manage your loan through the BDC Client Space platform. This tool allows you to track your loan progress, make payments, and access various support resources offered by BDC.
7. Testimonials
Many businesses have benefited significantly from the BDC Small Business Loan. Sharmila Sriram, Founder and CEO of Spectrum Medical Diagnostics, shares, "With BDC financing, we successfully launched and promoted two new rapid tests, along with a new AI-driven patient portal that will reach 6,000 pharmacies across Canada!"
Similarly, Dr. Mary Donohue, Founder, mentions, "I was totally impressed with the ease, speed, and efficiency of BDC’s online financing, which helped me set up my business in record time."
8. Frequently Asked Questions
How long does it take to get a loan?
This depends on the number of loan requests BDC receives and how quickly you provide all necessary information. BDC processes loan requests as swiftly as possible.
Can I apply for more than $100,000?
Yes. BDC offers a variety of business financing solutions beyond the $100,000 cap of the small business loan.
What happens if I am not approved?
If your financing request is declined or additional information is required, BDC will inform you. The exact timeline for reapplication is not specified, but it’s advisable to address any issues identified in the declined application before reapplying.
Are there any fees for applying?
No. There are no application fees. However, standard BDC administration fees and an annual loan management fee of $150 will apply if the loan is approved.
Is the loan guaranteed?
Approval is not guaranteed. Applicants must meet BDC’s eligibility criteria and pass a due diligence review to receive a loan offer.
9. Final Thoughts
The BDC Small Business Loan is an excellent option for Canadian businesses seeking quick and flexible financing. Its user-friendly online application, lack of application fees, flexible repayment terms, and supportive features make it a valuable resource for businesses looking to grow and succeed in today’s competitive environment. Whether you’re looking to improve cash flow, purchase essential equipment, or invest in growth initiatives, the BDC Small Business Loan can provide the financial boost you need.
To take advantage of this opportunity, visit the BDC website and start your loan application process today. With BDC’s support, your business can achieve new heights and continue to thrive.
