BDC Advisory Services — Digital Technology
Highlights
This program is designed for business owners like you who want to grow and innovate. It offers up to $1,000,000 in financing, with an additional $150,000 available for software or day-to-day operating costs. This funding can be used for a variety of needs, including operating expenses, restorations, new equipment, and software.
What sets this program apart is that it is backed by the government, providing you with more flexible repayment options. You can choose how to pay it back, with terms extending up to 15 years. This makes it a more manageable and secure option compared to traditional loans.
By being approved for this program, you will gain access to significant financial resources that can help you achieve your strategic goals. The application process is straightforward, ensuring that you can quickly and easily qualify for the support you need.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- The loan offers a fixed interest rate of 3.5% per annum.
- Repayment term is up to 10 years.
- Early repayment is allowed without penalties.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital.
- Intangible assets such as patents and trademarks.
Ineligible Expenses:
- Personal expenses.
- Real estate purchases.
- Debt refinancing.
Fees:
- Application fee of $150.
- Annual administration fee of 1% of the outstanding loan balance.
- No prepayment penalties.
Qualifications
- Must be a small or medium-sized enterprise (SME).
- Must have a Canada Revenue Agency Business Number.
- Business must be operating in Canada.
Must be in one of the following industries:
- Aerospace
- Automotive
- Construction
- Creation and culture
- Fisheries
- Food and beverage
- Manufacturing
- Mining
- Oil and gas
- Technology
- Tourism
Disqualifications:
- Businesses in the retail/wholesale sector.
- Real estate businesses.
- Government services.
- Personal or social services.
- Softwood lumber industry.
- Professional services such as marketing firms, creative agencies.
Description
This program offers your business a great opportunity to grow and thrive. You can borrow up to $1,000,000 to invest in your business. This money can be used for various purposes, such as buying new equipment, upgrading your facilities, or even covering operational costs.
Here’s how you can use the funds:
Up to $500,000 can be used for purchasing equipment or improving your rented space. This includes:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
Up to $150,000 can be used for costs like software or other operational expenses to keep your business running smoothly.
Key benefits include:
- 85% of the loan is guaranteed by the federal government, providing a significant security net for you.
- Flexible repayment options: You can choose between a changing interest rate, a steady one, or even combine your loan amount and interest into mixed payments.
- Up to 15 years to pay back the loan, regardless of what you spend it on.
This program is designed to help your business grow by providing the necessary funds with flexible terms and a strong safety net.
Program Steps
Gather Required Documentation: Prepare the necessary documents for your application. You will need:
- Business Plan
- Financial Statements (last two years)
- Tax Returns (last two years)
- Proof of Business Registration
- Identification Documents (e.g., driver's license, passport)
- Details of Intended Use of Funds (e.g., quotes for equipment, project costs)
Complete the Application Form: Fill out the application form provided by the program. Ensure all sections are completed accurately and thoroughly.
Submit the Application: Submit your completed application form along with the required documentation. This can usually be done online through the program's website or by mail.
Follow Up: After submission, follow up with the program's contact point to confirm receipt of your application and to address any additional questions or requirements they may have.
Review and Approval: Wait for the program administrators to review your application. They may contact you for further information or clarification.
Receive Funds: Once your application is approved, you will receive the funds. Make sure to review the terms and conditions associated with the funding.
Implement the Project: Use the funds as outlined in your application to implement your project. Keep detailed records of how the funds are used.
Report Progress: Periodically report your progress to the program administrators as required. This may include financial reports and project updates.
Repayment: If the program involves a loan, ensure you adhere to the repayment schedule and terms agreed upon.