BDC: Business Purchase or Transfer Loan
BDC lends money to buy an existing Canadian business that already makes revenue. You need an agreed purchase price and a letter of intent before BDC will review your request. This is a loan, not a grant. You can apply anytime.
Before you spend any money
There is no deadline, but a business purchase needs a detailed review. BDC says to start the financing process as early as possible to avoid delays with the sale.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You want to buy a Canadian business that is already generating revenue.
- You and the seller have agreed on a price and you have a letter of intent with an expected closing date.
- You need financing for goodwill, client lists or intellectual property as part of the purchase.
Probably not the right fit if
- You have not yet found a business or agreed on the main terms. BDC does not offer prequalification.
- You want a grant or non-repayable money. This is a loan that you must repay with interest.
- You are starting a new business or a franchise. BDC points you to its start-up financing instead.
How much you'd realistically get
BDC does not publish a maximum. The amount depends on the purchase, the business's finances and your down payment.
What may be supported
- Buying an existing business.
- Buying a competitor or a supplier.
- A management or employee buyout.
- Taking over a family business.
- Refinancing seller financing (vendor take-back).
How applying works
Effort: involvedYou send a loan request online with details of the purchase. A BDC representative then contacts you to review your options and the documents.
- 01Agree on a purchase price with the seller and get a letter of intent with an expected closing date.
- 02Gather your Notices of Assessment for the past 2 years and the business's financial statements or tax returns.
- 03Send a loan request on the BDC website with details of the business and how much you want to borrow.
- 04A BDC representative contacts you to review your options and next steps.
- 05If approved, you receive a loan offer.
Who to ask: BDC Business Solutions Centre: 1-877-232-2269; 'Message our team' form on bdc.ca
Documents commonly required
- The agreed purchase price and how it was set.
- The deal structure (asset purchase or share purchase).
- A letter of intent and expected closing date.
- Your down payment amount.
- Your Notices of Assessment from the past 2 years.
- The business's financial statements or income tax returns.
What to know before you count on it
- This is a loan, not a grant. You repay the principal plus interest.
- The interest rate, term and maximum amount are not published. You learn them in BDC's offer.
- You need an agreed purchase price, a letter of intent and your down payment before you apply.
- BDC does not help you find a business to buy. It does not keep a list of businesses for sale.
What are your odds?
BDC reviews the business, the deal and your situation. Approval is not certain.
Frequently asked questions
Can I apply if I am just thinking about buying a business?
No. BDC does not offer prequalification. It reviews a request once you have found a business and agreed on the main terms of the purchase.
What is the interest rate?
BDC does not publish it. It comes with the loan offer.
Can this loan cover goodwill and client lists?
Yes. BDC offers extra financing for intellectual property, goodwill and client lists.
How do I contact BDC?
Call the BDC Business Solutions Centre at 1-877-232-2269, or use the 'Message our team' form on the BDC page.
What you can combine it with
BDC says a purchase can combine your own money, a business loan and seller financing. BDC reviews how the whole purchase will be paid for.
Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Page last updated ; status and deadline checked . Source: official program page.