BDC Financing — Working Capital Term Loan

This financing offers considerable flexibility, allowing businesses to match repayment plans to their cash flow and focus on taking strategic opportunities for growth. By providing a long repayment term and interest-only payments initially, it supports businesses in managing their initial financial outlays while pursuing larger projects.

• Interest-only payments allowed for up to 24 months at the start of the loan.
• Customized repayment schedule aligned with the business's cash flow cycle.
• Loan repayment term of up to 8 years.

Eligibility for this financing option is determined by specific requirements outlined by BDC for companies seeking loans.

• The company must have been generating revenues for 12-24 months.
• Loans are subject to approval and certain conditions apply.
• Inclusive entrepreneurship loans are available for Indigenous entrepreneurs or newcomers to Canada.

Who is eligible?

There are specific types of companies eligible for this grant. Businesses in various sectors can benefit from this financing solution provided by BDC. Eligible sectors include tech companies, small businesses, commercial real estate, equipment loan seekers, and those looking for working capital.

• Tech companies
• Small businesses
• Commercial real estate businesses
• Equipment loan seekers
• Working capital loan applicants

Eligible expenses

This grant offers financing tailored to support business growth and operational improvements, ensuring that financial resources are available for strategic projects without affecting cash flow stability.

• Complementing existing lines of credit.
• Purchasing inventory to quickly fulfill orders.
• Launching growth projects, including expanding into new markets or developing new products.
• Protecting intellectual property and launching marketing campaigns.
• Improving profitability by paying suppliers upfront, obtaining certifications, and training employees.

Eligible geographic areas

This grant is available to businesses that are based in Canada. Eligibility is determined by the company's location within Canadian borders.

• Companies based in Canada.

There are evaluation and selection criteria for this grant. The evaluation and selection criteria include:

• Financial viability of the project
• Potential impact on job creation and economic growth
• Alignment with the grant objectives and priorities
• Evidence of innovation and market potential
• Demonstrated need for funding

Here are additional relevant details for this grant:

• Loans over $350,000 come with preferred terms and conditions.
• Applicants can benefit from unparalleled flexibility by matching payments to their cash flow cycle.
• BDC offers a "beyond the numbers" approach, considering management expertise and project potential rather than relying solely on banking ratios.
• Financial solutions are available that do not dilute ownership, particularly for asset-light companies or those needing non-conventional financing solutions.
• There are special financing solutions available for Indigenous entrepreneurs and newcomers to Canada.