Financing FAQs

Yes. We do a credit check on all loan guarantors, as well as on members of the board of directors.

BDC offers a range of business loans, depending on your needs and eligibility: 

• Amount: Our loans range from $10,000 up to several million dollars for large growth projects.
• Types of projects: Our loans are ideal for growth, commercial real estate, equipment purchases, technology upgrades, cash flow needs, and many other types of business projects.
• Easy application: Start your request online for amounts over $100,000. A BDC advisor will guide you through the next steps.
• Eligibility: Approval is based on your business’s financial health, credit profile, and growth potential.
• Flexible terms: Benefit from longer repayment periods and customized structures to fit your cash flow.

No. Applicants must meet BDC’s eligibility requirements before applying. All applications undergo a due diligence review before any loan offer is made. The online application guides you through the process.

BDC's main eligibility criteria:

• A Canadian-based business
• Between 12 and 24 months (depending on the loan type) of revenue-generating operations
• Profitable business
• Shareholders of legal age with good credit history

Having a good credit history improves your chances of approval. But you can increase your chances of getting a loan despite having a weak credit score. Learn more about how to improve your credit score.

To qualify for BDC financial support at the start-up stage, your business must meet certain requirements:

• Be based in Canada.
• Have been operating for at least 12 months.
• Have a good track record. 

See also our start-up financing page.

If you have less than 12 months of operations, you can reach out to one of our partners.

Any Canadian entrepreneur with a viable business plan can apply for a BDC loan. Here’s what matters most:

• Business type: Growing companies and established businesses across most sectors are eligible.
• Location: Must operate in Canada.
• Financial health: While strong credit helps, BDC looks at your business’s overall potential, cash flow, and management—not just your credit score.
• Clear purpose: Loans are intended for growth projects like expansion, equipment, technology, or working capital.
• Commitment to growth: A solid business plan and realistic projections are key to approval.

To qualify for a BDC business loan, you need to meet these key requirements:

• Canadian operations: Your business must be registered and active in Canada.
• Minimum time in business: Typically, your business should be operating for at least 12 months. Certain loan types may have different requirements, and some businesses may qualify based on a strong plan and projections.
• Revenue requirements: Demonstrate consistent revenue or a clear path to generating income.
• Generating profits: Your business should show profitability or a clear path toward it.
• Cash flow capacity: Show that you can manage repayments comfortably.
• Credit history: A good credit score helps, but BDC evaluates your overall financial health and growth potential—not just the number in your credit report.
• Business plan: A solid plan with realistic financial projections and clear objectives is essential.
• Ownership: Owners and shareholders must have reached the age of majority.

Yes. Businesses are not eligible if they:

• Promote violence or cruel behaviour:
  • Organize, produce, advertise, sell, or disseminate intense violent content (18+ or unrated content);
  • Incite hatred or cruel behaviour;
  • Discriminate based on race, national or ethnic origin, colour, religion, sex, age and/or mental or physical disability;
  • Participate, support, engage or indirectly promote any form of human rights abuse;
  • Operate a business organizing or perpetrating violent or cruel behaviour.
• Engage in sexual exploitation:
  • Operate any form of sexually exploitive business such as an escort service, brothel, erotic massage parlour, strip club, swinger’s club, or motel that rents rooms by the hour.
• Promote sexually explicit content:
  • Produce, advertise, sell or disseminate pornographic content or sexually explicit content (18+ or unrated content).
• If a business participates in any of the following industries or activities, they're not eligible:
  • Charitable, religious, and fraternal organizations
  • Unions, political/lobbying, and advocacy organizations
  • Government ownership
  • Private schools
  • Medical and personal care, nursing, and rehabilitation centres
  • Market speculation activities
  • Residential properties
  • Drug industry: marijuana/cannabis or related products/services industry
  • Virtual currency and Non-Fungible Token (NFTs)
  • Financial services or similar activities
  • Bars, lounges, or similar establishments
  • Gambling operations

You don't need to put a down payment on a BDC business loan. Collateral is dependent on the type of loan you select. If your business has solid cash flow or a promising idea but no assets, there are still many options. Read this article and discover practical ways to secure financing without offering collateral.

Some BDC loans are non-blended, which means your monthly principal payment stays the same. Interest is calculated on the remaining balance, which goes down each month. As a result, your payments become smaller over time.

As for the interest rate on our business loans, here’s an example of how it could be calculated:

Current floating base rate + variance based on your personal and business information = interest rate.

Because the variance depends on your situation, interest rates will vary from one client to another.

Our article about non-blended loans explains this in detail.

Repayment terms vary depending on your loan type, its terms, and the conditions that were granted.

Example for a 60-month Small Business Loan:

• First 6 months: You pay interest only. Principal payments are deferred.
• From month 7 onward: You make regular monthly payments until the loan is fully repaid.

Early repayment options are available, but they depend on your specific product and loan agreement.

BDC offers many types of business loans. Here are some of the most requested.

Small Business Loan

We provide financing solutions designed to help small businesses grow and succeed. Whether you need funds to expand operations, purchase equipment, or manage cash flow, our Small Business Loan is tailored to your needs.

Commercial Real Estate Loan

We also provide financing solutions to buy or renovate commercial space. You can get extra financing to cover related costs like moving and downpayments. See Commercial Real Estate Loan.

Green Building Certified Loan

This loan supports the construction of a new building or the purchase or renovation of an existing one with the goal of obtaining environmental certification. Eligible certifications include:

• LEED (minimum Silver)
• Zero Carbon Building
• Zero Energy Certification
• BOMA BEST (minimum Silver)
• ENERGY STAR

See Certified Green Building Loan

No down payment is required for a business loan. However, certain purchases—such as real estate—may require a down payment.

Yes, but usually through programs and institutions—not direct cash grants. Here’s what you need to know:

• Government-backed financing: In Canada, programs like those offered through BDC provide loans supported by the federal government.
• Not free money: These are repayable loans, not grants. You’ll need to meet eligibility criteria and repayment terms.
• Focus on growth: Government-backed loans are designed to help businesses invest in equipment, technology, and expansion—not cover operating losses.
• Accessible online: Applications for these loans can often be started online through official channels like BDC.ca.
• Additional programs: Other government initiatives may exist for specific sectors or innovation projects, but they typically involve financing rather than outright grants. 

See the Government of Canada’s Business Benefits Finder for a complete list of government loans and grants.

BDC is a commercial bank offering long-term business financing, which must be repaid with interest.

For information on grants or subsidies, visit the Government of Canada’s Business Benefits Finder.

If you’re looking for ways to fund your new business, these options can help give your company the momentum it needs to grow. See our Start-up financing sources.

Buying a business without significant upfront capital can be challenging, but there are options to explore:

Seller financing

• Some sellers may agree to finance part of the purchase price, allowing you to pay over time instead of all at once.

Government and community programs 

• Immigrant entrepreneur programs: Certain provincial and federal programs support newcomers who want to buy or start a business. See Newcomer Entrepreneur.
• Community banking initiatives: Local credit unions and community lenders sometimes offer flexible financing for entrepreneurs with limited resources. See Community Banking.
• Special programs: Look for targeted initiatives for underrepresented groups or specific industries, such as Black entrepreneurs, Indigenous entrepreneurs, women entrepreneurs, young entrepreneurs, newcomer entrepreneurs and technology entrepreneurs.

Partnerships or investors

• You can team up with partners or seek investors who provide capital in exchange for equity.

BDC support

BDC offers financing solutions for business acquisitions, but you’ll need to demonstrate:

• A solid business plan
• Relevant experience
• The ability to manage the business successfully

Explore our guide to buying a business.

Even if you start with little money, lenders and programs will expect you to show commitment—through experience, a strong plan, and some personal investment.

We offer non-blended loans. It’s a type of loan that has a fixed monthly principal payment plus interest on the declining balance.

The interest rate is only one part of your total financing package. BDC offers more than affordable rates—we provide flexible repayment terms, higher levels of financing, and tailored solutions to support your business growth. Our approach includes long-term financing options, advisory services, and specialized programs that many traditional lenders don’t offer. Choosing BDC means partnering with an institution focused on helping Canadian entrepreneurs succeed, not just on short-term cost savings.

If your loan application is declined, it doesn’t mean the end of your financing journey.

Here’s what happens next:

• Alternative options: You may be offered other financing solutions better suited to your business profile.
• Actionable guidance: Our advisors can give you guidance to help you improve your financial position and reapply when ready.
• Resources for growth: You’ll always have access to tools, advice, and programs to strengthen your business and improve your eligibility.
• No hidden impact: A declined application doesn’t affect your ability to apply again in the future.

BDC does not provide grants or traditional revolving lines of credit. Instead, we focus on flexible term loans and financing solutions tailored to business growth. Here’s what you can expect:

• No grants: BDC is a development bank offering repayable financing— not government grants.
• No revolving credit lines: Instead of short-term credit, BDC provides term loans with predictable payments.
• Alternative solutions: Financing options include working capital loans, equipment purchases, and growth projects.
• Expert guidance: Advisors help you choose the right structure for your needs—often more stable than a line of credit.
• Complementary resources: While BDC doesn’t offer grants, it can guide you toward programs or partners that do. See Business Benefits Finder.

Yes, depending on your business profile. Here’s what matters:

• Credit isn’t everything: Good credit helps, but BDC also looks at cash flow, business potential, and management.
• No collateral? Options exist: Some BDC loans may require a personal or corporate guarantee, which means that assets are not always required.
• Tailored solutions: If your credit is weak, you may qualify for smaller amounts or get advice to strengthen your file.
• Expert support: BDC advisors can help you explore different alternatives.
• Focus on viability: A solid plan and realistic projections can offset credit challenges.

BDC isn’t a traditional bank. It’s Canada’s only financial institution devoted exclusively to entrepreneurs. Here’s what makes us different:

• Growth-focused mandate: Our mission is to help Canadian businesses succeed—not to maximize shareholder returns.
• Flexible financing: Longer repayment terms, tailored structures, and options for businesses that may not qualify with traditional banks.
• Advisory services: Beyond financing, we provide expert advice, tools, and resources to help you plan and grow.
• Innovation support: Specialized programs for technology adoption, sustainability, and expansion.
• Reliable partner: As a Crown corporation, BDC offers stability and consistent support through all economic cycles.