Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

BDC Business Loans Review

Business Development Bank of Canada, or BDC, provides financing to businesses at different stages of growth.

Please note: All information about BDC Business Loan has been collected independently by Finder and this product is not available through this site.
  • Consider a BDC Business Loan if you’re an entrepreneur or business owner looking to secure capital for upgrades to your business.
  • Pick something else if you need a business line of credit.

Expert review

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 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:

Financing solutionLoan amountLoan term
Small business loanUp to $100,0005 years
Startup financing (your business must be in operation for at least 12 months)Up to $250,000Not specified
Commercial real estateUp to 100% financingUp to 25 years
Working capitalNot specifiedUp to 6 years
Purchase orderUp to 90% financingUp to 18 months
Equipment purchaseUp to 125%Up to 12 years
Business purchase or transfer financingTailored to your needsNot specified
Financing for tech companiesNot specifiedNot specified
Technology financingUp to 100% financingUp to 4 years

What are the benefits of a BDC loan?

BDC offers flexibility when it comes to loans, giving you the opportunity to find terms that fit your needs.
  • 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

Name Product Interest Rate Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered
SharpShooter Funding Business Loan
Prime pricing from 9.00%
$500 - $250,000
6 - 120 months
$10,000 /month
100 days
Unsecured Term, Merchant Cash Advance, Invoice Factoring
To be eligible, you must have been in business for at least 100 days with a minimum of $10,000 in monthly deposits.

SharpShooter provides capital to small businesses that are underserved by banks and credit unions. It measures overall business health and potential rather than focusing strictly on traditional metrics. Fill out a simple application and get pre-approved in minutes. Receive your funds within 24 hours.
OnDeck Business Loan
8.00% – 29.00%
$5,000 - $300,000
6 - 18 months
$10,000 /month
6 months
Secured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum monthly revenue of $10,000.

OnDeck 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.
Loans Canada Business Loan
Prime Pricing from 9.00%
$2,000 - $350,000
3 - 60 months
$4,166 /month
100 days
Unsecured Term
To be eligible, you must have been in business for at least 100 days, have a credit score of 410+ and show a minimum of $4,166 in monthly deposits ($50,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $350,000. Complete one simple online application and get matched with your loan options.

Compare up to 4 providers

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?

BDC will require the following documents when applying for a business loan:
  • Bank account information from the business owner
  • Bank account information from the business as a whole
  • Year-end financial statements from the last 2 years or notice of assessment and income tax returns from the last 2 years
  • 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

More guides on Finder

Go to site