In this guide

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  • Details
    • Product Details
    • Fees
    • Application Requirements
  • Your reviews
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BDC Business Loan
APR Range
From 4.00%
Loan Term
Up to 60 months for standard loans and up to 25 years for real estate loans
Minimum Revenue
Minimum Time in Business
12 months
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Our verdict

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

BDC is a crown corporation owned by the Canadian government. Much like the Big Five banks, you'll need to meet a stricter set of eligibility requirements. Interest rates are not disclosed online, but through BDC you can look forward to some relief if your business is eligible for available benefits, such as postponed principal payments.

Best for: Business owners or entrepreneurs looking for financing to make upgrades to their business.


  • Different financing options
  • No prepayment fees
  • Advisory services


  • Interest rates not listed online
  • No lines of credit offered

In this guide

  • Our verdict
  • Details
    • Product Details
    • Fees
    • Application Requirements
  • Your reviews


Product Details

Product Name BDC Business Loan
Benefit Description BDC, or Business Development Bank of Canada, provides loans of up to $100,000 to Canadian businesses.
Loan Amount Varies - $100,000
Loan Term Up to 60 months for standard loans and up to 25 years for real estate loans
Loans Offered Secured Term


Origination Fee $50
Fees $50 processing fee deducted from the loan
$150 annual fee

Application Requirements

Requirements Restricted uses
BDC does not fund businesses that are sexually explicit, such as entertainment, products or services

BDC does not fund businesses trading in countries that are proscribed by the federal government
Minimum Income $5,000

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:

Financing solutionLoan amountLoan term
Small business loanUp to $100,0005 years
Commercial real estateUp to 100% financingUp to 25 years
Working capitalNot specifiedUp to 8 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% financingNot specified

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

1 - 3 of 3
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
4 - 24 months
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.
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.
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.

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 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.

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