BDC Financing — Small Business Loan
Highlights
This program is perfect for your business because it offers quick and easy access to funds with flexible terms. You can get up to $100,000 online with no application fees and the option to postpone principal payments for the first six months. This means you can focus on growing your business without immediate financial pressure.
Key Benefits:
- Flexible Repayment: Postpone principal payments for the first six months and repay the loan over a five-year period.
- Affordable Rates: Benefit from an affordable interest rate with no penalties for early or lump-sum payments.
- Convenient Process: Apply online hassle-free and receive funds quickly if approved.
Use the Funds For:
- Supplementing cash flow
- Purchasing equipment, software, or hardware
- Upgrading your website and running marketing campaigns
- Covering expenses like paying suppliers, landlords, and employees
Applying for this program is straightforward, and it’s designed to meet your business needs efficiently. Take advantage of this opportunity to secure the financing you need to grow and thrive.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 60 months.
- Interest Rate: Current floating base rate + variance based on your personal and business information.
- Initial Payments: Principal payments postponed for the first 6 months; only interest is due.
Eligible Expenses:
- Supplementing cash flow.
- Purchasing equipment, software, or hardware.
- Upgrading websites, purchasing inventory, running marketing campaigns, hiring consultants.
- Covering expenses such as paying suppliers, landlords, and employees.
Ineligible Expenses:
- Funds cannot be used for personal expenses or any non-business-related activities.
Fees:
- No application fees.
- Standard administration fees apply upon loan acceptance.
- Annual loan management fee: $150.
- Transaction fee for amendments: $150 per amendment.
Qualifications
- Must be based and registered in Canada.
- Must have a good credit history.
- Must have been operating and generating revenue for at least 2 years.
- All shareholders must have reached the age of majority in their province or territory.
- All shareholders owning 25% or more of the business must provide their consent.
One person from the Board of Directors must provide their consent.
Disqualifications:
- Shareholders owning 25% or more of the company’s shares who do not live in Canada.
- Company directors or shareholders who fail to provide their consent.
Description
This program offers your business a chance to borrow up to $100,000. You can use this money to:
- Supplement cash flow: Ensure you have enough funds for daily operations.
- Purchase equipment, software, or hardware: Invest in tools without using your working capital.
- Sell online to increase sales: Upgrade your website, buy inventory, run marketing campaigns, or hire a consultant.
- Cover expenses: Pay suppliers, landlords, or employees.
Flexible terms make this loan attractive. You can postpone principal payments for the first 6 months and then repay the loan over a period of 5 years. This gives you breathing room to manage your finances.
The loan comes with affordable rates and no application fees. You also won't face penalties for early or lump-sum payments, giving you peace of mind and financial flexibility.
Program Steps
Gather Necessary Information:
- Business registration details
- Names, email addresses, home addresses, and mobile phone numbers for the company's president, board members, and shareholders
- Business void cheque or Pre-Authorized Payment (PAP) form
- Government-issued photo ID for personal verification
Create a Client Space Account:
- Visit the program's website and create a Client Space account
- Follow the step-by-step instructions to set up your account
Complete the Online Application Form:
- Log in to your Client Space account
- Fill out the online loan application form with accurate business and personal information
- Save your progress if you need to gather additional information
Prepare and Upload Documentation:
- Ensure your business registry is up-to-date
- Upload necessary documents such as:
- Business registration details
- Business void cheque or PAP form
- Government-issued photo ID
- Provide consents from business partners and shareholders
Submit the Application:
- Review all entered information and uploaded documents
- Submit the completed application form through your Client Space account
Digital ID Verification:
- Complete the digital identification process by uploading your ID and taking a selfie
- Ensure all shareholders and board members complete their verification steps
Review and Accept Loan Offer:
- Monitor your Client Space account for updates on your loan application status
- Review the loan offer details, including terms and conditions
- Accept the loan offer and sign all related documents
Receive Funds:
- Upon approval and acceptance of the loan offer, the funds will be disbursed to your business account
- Use the funds as outlined in your application to support your business needs