BDC Loans in Canada: Eligibility, Rates and Practical Steps to Scale Up Your Small Business
BDC loan options, eligibility tips and rate insights to help Canadian small businesses secure funding and scale confidently
What BDC Loans Offer Canadian Small Businesses
BDC loans from the Business Development Bank of Canada are built for entrepreneurs across Canada who need growth capital, equipment financing, working capital or commercial real estate support. As a Crown corporation, the BDC provides tailored lending solutions that complement traditional bank products, making BDC loans an attractive option for small business owners from Toronto to Halifax.
Options include small business loans up to $100,000, commercial real estate financing with long amortizations, equipment loans up to 125% of equipment value, and purchase order or technology financing. These BDC loan products often include flexible repayment plans, advisory support and features like postponed principal payments to match real-world cash flow needs.
Eligibility and application tips for BDC loans
To qualify for a BDC loan your business must operate in Canada and demonstrate viable revenue, a solid credit profile and a clear business plan. The Business Development Bank of Canada looks for businesses that can use financing to scale, innovate or stabilize—startups with traction and established firms expanding into new provinces are both considered.
Prepare financial statements, recent tax returns, a concise business plan and projections—having GST/HST registration and a clear use of funds speeds approval. If you’re in a sector like tech, manufacturing or services in Alberta, BC or Quebec, highlight local market traction and how a BDC loan will improve margins, productivity or sales growth.
Rates, fees and flexible terms
BDC does not publish blanket interest rates online; pricing depends on loan type, term and your company’s risk profile. That said, BDC loans are known for competitive terms compared with alternative lenders, and they’re transparent about fixed fees such as a $50 origination fee, a $50 processing fee deducted from disbursed funds, and an annual $150 administration fee.
Key benefits include the ability to postpone principal payments for 6 to 36 months on qualifying loans and no prepayment penalties if you decide to repay early. These flexible features make BDC loans useful for seasonal businesses, fast-growing startups and firms investing heavily in equipment or digital transformation.
How to use a BDC loan to scale your business
Use a BDC loan strategically: fund equipment that increases capacity, finance a commercial location to expand your footprint, or invest in technology that boosts online sales across Canadian provinces. Pair the loan with BDC advisory services—over 500 consultants nationwide—to refine your growth plan and ensure the financing directly supports measurable outcomes.
Applying is straightforward through the BDC online portal, but success hinges on a practical plan showing how the loan drives revenue or efficiency. For Canadian small business owners ready to scale, a BDC loan combined with advisory help can unlock sustainable growth—review options, prepare your documents and apply to move your company forward.