BDC Business Loans Review

What should I know about the Business Development Bank of Canada business loans?

BDC is a crown corporation owned by the federal government. It offers financing solutions for many purposes, including small projects, commercial real estate, working capital, business acquisitions or transfers, equipment purchases, purchase orders and more. Loan amounts and loan terms vary based on the type of financing you apply for.

You can apply for a loan whether your business is new or established. BDC also allows you to postpone principal payments up to 6 to 36 months, giving you breathing room to focus on growing your business.

First, do I qualify?

The criteria for BDC Business Loans depend on the type of financing you’re applying for, but generally, you’ll need to meet the following:

• Your business is based in Canada.
• You have a good credit history.
• You meet the minimum time in business.
• Your business is generating revenue.
• You have reached the age of maturity where you live.

What types of business loans does BDC provide?

BDC offers the following types of financing:

What are the benefits of a BDC loan?

• Different types of financing. You can choose from many options to finance your business.
• No application fees. When applying online for a small business loan, there are no application fees.
• No prepayment penalties. There are no fees for paying off your small business loan early.
• Advisory services. BDC has over 500 business consultants across Canada to help you with business challenges.
• Low interest loans for businesses heavily impacted by COVID-19. If your business has lost more than 50% for at least 3 months in the last 8 months, you can borrow between $25,000 and $1 million at a 4% interest rate with a loan term up to 10 years.
• Postpone principal payments. Depending on the type of financing, you can postpone principal payments for up to 6 to 36 months.

What to watch out for

• Rates are not posted online. You’ll need to apply to find out what rates you’re eligible for.
• No business lines of credit. BDC does not offer business lines of credit, so consider another lender if you’re looking for this specific product.
• No grants or subsidies. BDC is a commercial bank and does not offer grants or subsidies.

Compare business loans

1 - 3 of 3

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Name	Product	APR Range	Loan Amount	Loan Term	Minimum Revenue	Minimum Time in Business	Loans Offered	Broker Compliance
Journey Capital Business Loan		8.00% – 29.00%	$5,000 - $300,000	6 - 18 months	$100,000/year	6+ months	Term Loan, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000. Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.	Go to site More Info	Compare	loading Fetching your data...
Merchant Growth Business Loan		12.99% – 39.99%	$5,000 – $800,000	6 – 24 months	$10,000 /month	6 months	Unsecured Term, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales. Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Business Loan		6.60% - 29.00%	$4,000 - $500,000	3 - 60 months	over $10,000/month	100 days	Unsecured Term	Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year). Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.	Go to site More Info	Compare	loading Fetching your data...

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How do I apply?

To apply online for a BDC Business Loan, follow these steps:

1. You will be asked if you have a Client Space account. Client Space is a secure platform for financial services, but it is not required to proceed.
2. Specify what type of loan you’re looking for.
3. Enter the amount you are looking to borrow.
4. Describe your project in 1,000 characters or less.
5. Answer a few questions about what your business does to ensure your eligibility for a loan.
6. Create an account with your personal details.

What documents do I need to apply?

• Bank account information from the business owner
• Bank account information from the business as a whole
• Year-end financial statements from the last N/A or notice of assessment and income tax returns from the last N/A
• A void cheque from the business bank account

I got a BDC Business Loan, now what?

Once you receive your funds, which should appear in your account within 2 business days, the money can be put to use on the agreed-upon project. Training staff, upgrading technology systems, renovating your space or buying a new location are all on the table.

Your principal payments can be postponed at the start of the loan for a certain period of time (up to 6 to 36 months depending on the type of financing). If you got a small business loan, you can pay it off early without penalties.

To compare business loans and make sure you find the right one for you, check out our guide to business loans.

Frequently asked questions

• Is this the Bank of Canada?

  No. Although they have similar names and BDC is a crown corporation, it is not the Bank of Canada.

• Can I apply for a BDC loan as a startup?

  To be eligible for financial support from BDC as a startup, you must demonstrate realistic market and sales potential, have experience or expertise in your field, provide personal or credit references, demonstrate a reasonable investment of financial resources and provide a business plan.