Established in 1944, the Business Development Bank of Canada (BDC) is a crown corporation that’s owned by the federal government. They’re the only Canadian bank with Beneficial Corporation (B Corp) certification (reserved for companies that benefit society) and they specialize in providing different business financing services, including but not limited to:
As mentioned, a BDC Small Business loan lets you borrow up to $100,000 over a maximum period of 5 years. It’s designed to help businesses finance a variety of expenses such as new equipment, inventory, supplier costs, employee salaries, and marketing campaigns. When you choose a BDC small business loan, you can take advantage of:
As a client of BDC, you can apply for a business loan whether you’re trying to finance a startup or an established company. You’re also allowed to postpone your principal loan payments for 6 – 36 months, if necessary. BDC currently offers the following loan types:
| Financing Product | Loan Amount | Payment Term |
Business Purchase or Transfer Financing | Flexible | None specified |
Commercial Real Estate | Up to 100% financing | 25 years max. |
Equipment Purchase | Up to 125% financing | 12 years max. |
Purchase Order | Up to 90% financing | 18 months max. |
Small Business Loan | Up to $100,000 | 5 years |
Startup Financing (all businesses must be operating for a minimum of 12 months) | Up to $125,000 | None specified |
Technology Financing | Up to 100% financing | 4 years max. |
Technology Company Financing | None specified | None specified |
At BDC, business financing requirements vary from product to product. For instance, here’s what you’ll need in order to qualify for a BDC Small Business Loan:
Applying for BDC business financing is relatively simple. Just follow these instructions:
When you apply for a BDC loan, make sure to have these documents ready:
You must also obtain the consent of any business partners you have. Otherwise, if your business qualifies, you can accept your loan offer and sign the confirmation documents.
While BDC is a government-owned bank, their loan prices work almost the same as any other lender, meaning the cost of your BDC business loan could vary according to your:
| APR | Monthly Payment | Total Interest | Total Cost |
| 10% | $87.92 | $54.99 | $1,054.99 |
| 20% | $92.63 | $111.61 | $1,111.61 |
| 30% | $97.49 | $169.85 | $1,169.85 |
| 40% | $102.47 | $229.66 | $1,229.66 |
No matter what type of business financing you choose, getting a low-interest rate is one of the primary ways to make it more affordable. BDC decides your rate by determining the creditworthiness of your business and any of its owners. Basically, you must prove that your business loan will be paid off in full and on schedule, which you can do by:
Here are some of the main reasons to apply for your business financing through BDC:
Then BDC could be the perfect bank for you. Not only are they owned and regulated by the federal government, BDC offers a range of flexible and affordable loan options for small and medium-sized businesses alike. Don’t hesitate to call the BDC customer service department at 1-877-232-2269 or visit their website today for more information
Loan Range | Rate & Terms | Product Details | Eligibility | Requirements & Documents | |
|---|---|---|---|---|---|
Business Loan | $100,000+ |
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Have had loans from BDC and they used to be good. Local rep was personable, actually checking in annually. Now they are a bank, no one to talk to, no ... read more
They are terrible to deal with, no phone calls to explain why just an email no wonder people are fed up with them. They claim to help small businesses... read more
They are not out to help entrepreneurs, its a lie. They are yet another government-ran bank with clueless employees. If you are a small business, good... read more
I’ve referred many clients to BDC over the years and after hearing many negative reports I decided to try myself. The place is an absolute Joke.... read more
BDC is a “bank” and NOT “for entrepreneurs”. Run like a government department rather than a supporter of small business.
I am now 16 years with BDC, 3 loans later. 1: buy business 2: renovate business 3: expand business. COVID19 has taken 16 years of work and killed it. ... read more
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