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

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.

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