Business Development Bank of Canada (BDC) – Business Purchase or Transfer Financing (2022)

ByMaurice

Description:

The BDC Business Purchase or Transfer Financing program provides funding to entrepreneurs thinking of buying a company, making a merger or acquiring a competitor to expand their business.

Financing can be use to:

  1. acquire fixed assets (purchase land, a building, equipment and shares of an existing business),

  2. buyout a business (secure financing for a family succession, a management buyout (MBO) or to refinance vendor financing (vendor take-back),

  3. acquire intangible assets (access additional financing to obtain intellectual property, goodwill and client lists).

Comments on Funding:

Funding starts at:

  • $10,000 for businesses that have been in operation between 12 and 24 months and
  • $100,000 for businesses that have been in operation for more than 24 months.

The above-mentioned amounts are requested by the online application system when trying to apply.

BDC doesn’t take personal assets as collateral for the loan.

Eligibility:

Applicant must:

  • be entrepreneurs/ Canadian citizens or permanent residents;
  • have reached the age of majority in the province or territory in which they live;
  • have a business that has been in operations for at least 12 months.

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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