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|terms_and_conditions
This grant offers adaptable financing modalities designed to suit the needs of small businesses while maintaining financial prudence. The outlined structures ensure funding accessibility and manageable repayment options.
- Financing up to $100,000 is available online, contingent upon BDC's assessment and approval of the application.
- Loans have a repayment period of 60 months, with an option to postpone principal payments for the first six months.
- No application fees are charged for applying for the loan; however, a standard annual loan management fee and transaction fees for amendments will apply upon approval and acceptance.
- The interest rate is calculated as a combination of the current floating base rate plus a variance specific to the borrower's personal and business information.
- No penalties are imposed for early or lump-sum repayments.
grant_single_labels|projects
The BDC Financing Small Business Loan is designed to support a variety of activities crucial for the growth and sustainability of Canadian businesses. This loan enables businesses to address immediate financial needs as well as plan for long-term investments.
- Supplementing cash flow for operational stability.
- Purchasing equipment, including technology, software, or hardware.
- Expanding business operations through online sales and marketing.
- Improving digital presence and hiring consultancy services.
- Managing regular expenses like supplier, landlord, and employee payments.
grant_single|admissibleProjectsExample
$ 75,000
Upgrade office equipment to enhance productivity and operational efficiency
$ 85,000
Purchase inventory to prepare for seasonal demand and prevent stockouts
$ 50,000
Hire a consultant to streamline our supply chain and reduce operational costs
$ 60,000
Run a comprehensive marketing campaign to increase brand awareness
$ 75,000
Upgrade e-commerce platform to expand online presence and increase sales
$ 100,000
Supplement cash flow to maintain operations during the off-peak season
grant_single_labels|admissibility
Eligibility for this BDC small business loan is determined based on the following criteria:
- The business must be based and registered in Canada.
- The business must have a good credit history.
- The business must have been operating and generating revenue for at least 24 months.
- The company's shareholders must have reached the age of majority in their respective province or territory.
- All owners holding 25% or more of the company shares and members of the board of directors must pass a credit check.
grant_eligibility_criteria|who_can_apply
Businesses eligible for the BDC small business loan must meet the following criteria:- The business must be based and registered in Canada.- A good credit history is required.- The business must have been operating and generating revenue for at least 2 years.- The shareholders must have reached the age of majority in the province or territory they live in.This loan is ideal for small businesses that need quick access to funds for various purposes such as supplementing cash flow, purchasing equipment, selling online to increase sales, upgrading websites, purchasing inventory, running marketing campaigns, hiring consultants, covering operational expenses, or paying suppliers, landlords, and employees.
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
BDC's small business loan provides financing to support various business activities designed to enhance growth and operational efficiency. It enables companies to allocate funds toward strategic initiatives without disrupting their daily cash flow.
- Supplementing cash flow for operational stability.
- Purchasing equipment, software, or hardware necessary for business operations.
- Investing in e-commerce solutions to boost online sales capacities.
- Upgrading websites or purchasing inventory to meet market demands.
- Running marketing campaigns to reach new customers or expand market presence.
- Hiring consultants for expert advice and business strategy implementation.
- Covering essential expenses such as payments to suppliers, landlords, and employees.
grant_eligibility_criteria|zone
This BDC small business loan is available to corporations that are registered in Canada. The eligibility is based on the business being incorporated within the country and operating consistently for at least two years.
- 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: Check Eligibility
- Ensure your business is based and registered in Canada.
- Verify that you have a good credit history.
- Confirm that your business has been generating revenue for at least 2 years.
- Step 2: Prepare Necessary Information
- Gather business information as listed in your business registry.
- Collect personal and contact details of the company president, board of directors, and shareholders.
- Obtain a business void cheque or pre-authorized payment form.
- Ensure you have a piece of government-issued photo ID ready.
- Step 3: Create Client Space Account
- Visit the BDC website to create a Client Space account.
- Follow the instructions to set up the account with a unique email and mobile number for two-factor authentication.
- Step 4: Fill Out Online Loan Application
- Log into your Client Space account.
- Complete the loan application form with all required information.
- Upload necessary documents such as business registry and cheque specimen.
- Step 5: Provide Consents and Verifications
- Ensure consents are provided by all shareholders owning 25% or more and a board member.
- Complete digital ID verification with a selfie and ID upload.
- Step 6: Submit Application
- Review the completed application for accuracy.
- Submit the application through your Client Space account.
- Step 7: Await Loan Offer
- Check the status of your application in Client Space.
- Receive a loan offer if approved.
- Step 8: Accept Loan Offer
- Review and accept the loan offer through your Client Space account.
- Sign all related documents as prompted.
- Step 9: Receive Funds
- After acceptance, funds are disbursed to your business account.
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
