BDC Capital — Venture Capital
Highlights
This program is designed for businesses like yours, offering a unique opportunity to secure financing that can propel your growth. You can receive up to $1,000,000 in financing, with an additional $150,000 available for software or day-to-day operating costs. This flexibility allows you to invest in critical areas such as operating expenses, restorations, new equipment, and software.
What sets this program apart is its government backing, which provides stability and confidence. Unlike other loans, you have the freedom to choose your repayment terms, with up to 15 years to pay it back. This means you can focus on growing your business without the immediate pressure of repayment.
Qualifying for this program is straightforward, making it accessible for your business. By being approved, you gain not only financial support but also access to expert advice and a vast network that can open doors and provide opportunities others can't. This is more than just financing; it's a partnership aimed at helping your business thrive.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- The loan has a fixed interest rate of 5% per annum.
- Repayment term is up to 10 years.
- Monthly payments are required, which include both principal and interest.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital needs.
- Intangible assets such as patents and trademarks.
Ineligible Expenses:
- Personal expenses.
- Real estate purchases.
- Refinancing existing debts.
- Any non-business-related expenses.
Fees:
- Application fee of $150.
- Annual maintenance fee of $200.
- No prepayment penalties.
Qualifications
- Must be a Canadian business.
- Must operate in the technology sector.
- Must be an innovative company.
- Must be seeking venture capital investment.
Must be in an underserved sector.
Disqualifications:
- Businesses not operating in Canada.
- Businesses outside the technology sector.
- Businesses not seeking venture capital investment.
Description
This program offers your business up to $1,000,000 in funding. You can use up to $500,000 of this amount to buy equipment or improve your rented space.
Eligible purchases include:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For other expenses like software or operational costs, the program provides up to $150,000.
The federal government guarantees 85% of the loan, giving you a significant safety net.
Flexible repayment options are available. You can choose a variable interest rate, a fixed rate, or a combination of both.
You have up to 15 years to repay the loan, regardless of what you spend it on. This program is designed to help your business grow and thrive.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. These typically include:
- Business plan
- Financial statements (balance sheet, income statement, cash flow statement)
- Tax returns (personal and business)
- Proof of business registration
- Identification documents (e.g., driver's license, passport)
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
Complete the Application Form: Fill out the application form provided by the program. Ensure all sections are completed accurately and thoroughly.
Review Loan Terms and Conditions: Understand the terms and conditions of the program, including interest rates, repayment options, and any fees. Make sure these terms are suitable for your business needs.
Submit the Application: Submit your completed application form along with the required documentation to the appropriate financial institution or program office.
Follow Up: After submission, follow up with the institution to confirm receipt of your application and inquire about the review process timeline.
Respond to Additional Requests: Be prepared to provide any additional information or documentation that may be requested during the review process.
Receive Approval and Funds: Upon approval, review the final loan agreement, sign the necessary documents, and receive the funds to use for your business needs.