BDC business loans review

What is the BDC?

The Business Development Bank of Canada offers business financing solutions for many purposes, including small projects, commercial real estate, working capital, business acquisitions or transfers, equipment purchases, purchase orders and more. Loan amounts and loan terms vary based on the type of financing you apply for.

Is the BDC legit?

It is. The BDC is a crown corporation owned by the federal government. Established in 1944, its mission is to provide financing and consulting services for entrepreneurs running small and medium businesses across Canada. The BDC’s mandate is set out in the Business Development Bank of Canada Act, which was passed in July 1995, and the bank is also a certified B Corporation.

Types of BDC business loans

The BDC offers the following types of financing:

What we like about BDC business loans

• Different types of financing. You can choose from a wide range of BDC business loan options.
• No application fees. There are no application fees to worry about when applying for a small business loan from the BDC.
• Easy online application process. Fill out an application and get a customized offer online.
• No prepayment penalties. There are no fees for paying off your small business loan early.
• Advisory services. The BDC has a nationwide network of over 500 business consultants across Canada to help you grow your business.
• Postpone principal payments. Depending on the type of financing, you can postpone principal payments for up to the first 6–36 months after taking out a loan.

What to watch out for

• Rates are not posted online. You’ll need to apply to find out what rates you’re eligible for.
• No business lines of credit. The BDC does not offer business lines of credit, so consider another lender if you’re looking for this specific product.
• Fees. A BDC small business loan comes with administration fees and an annual loan management fee of $150.
• No grants or subsidies. BDC is a commercial bank and does not offer government grants or subsidies.

Compare business loans

1 - 3 of 3

Name	Product CAFBL	APR Range	Loan Amount	Loan Term	Minimum Revenue	Minimum Time in Business	Loans Offered	Broker Compliance
Journey Capital Business Loan		8% – 29%	$5,000 - $300,000	4 - 24 months	$100,000/year	6+ months	Term Loan, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000. Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.	Go to siteMore Info Compare	loading Fetching your data...
Merchant Growth Business Loan		12.99% – 39.99%	$5,000 – $800,000	6 – 24 months	$10,000 /month	6 months	Unsecured Term, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales. Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.	Go to siteMore Info Compare	loading Fetching your data...
Loans Canada Business Loan		6.99% - 46.96%	$500 - $500,000	3 - 60 months	over $10,000/month	9 months	Unsecured Term	Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year). Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.	Go to siteMore Info Compare	loading Fetching your data...

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Summary of BDC reviews

There are limited BDC reviews available online. However, those we could find were mixed, with some people complaining about high interest rates and poor customer service.

Customer reviews last verified on September 18, 2024.

Am I eligible for a BDC business loan?

The criteria for BDC business loans depend on the type of financing you’re applying for, but you’ll generally need to meet the following requirements:

• Run a Canada-based business
• Have been operating for at least 24 months and generating revenue
• The age of maturity in your province or territory
• Your business complies with the BDC’s legal and ethical criteria (for example, you’ll need to specify that your business does not promote or incite violence and that it doesn’t participate in specific industries like gambling and marijuana/cannabis)

You’ll also need to meet credit score requirements. For all businesses except those located in Quebec, a credit inquiry is done for:

• All shareholders who own 25% or more of the business
• Members of the board of directors

For businesses located in Quebec, all shareholders owning 25% or more of the business and the president of the board of directors will need to undergo a credit check.

How to apply for BDC business loans

To apply online for a BDC business loan, follow these steps:

1. Visit the BDC website and select Apply now.
2. You will be asked if you have a Client Space account. Client Space is a secure platform for financial services, but it is not required to proceed.
3. Specify what type of loan you’re looking for.
4. Enter the amount you want to borrow.
5. Describe your project in 1,000 characters or less.
6. Answer a few questions about what your business does to ensure your eligibility for a loan.
7. Provide your name, address and contact information to create an account.
8. Submit a loan application.
9. Confirm your identity. You and your other shareholders or key business partners will need to verify your identity online.

What documents do I need to apply?

You’ll need to supply the following when applying for a business loan:

• Government-issued photo ID
• Unfrozen access to your credit file
• Business information as listed in your business registry
• Business GST number
• Bank account information
• Names, contact details and proof of ID for the company’s president, shareholders and members of the board of directors
• Year-end financial statements or notice of assessment and income tax returns
• A void cheque for your business bank account

How much does a BDC business loan cost?

The cost of a BDC business loan depends on factors like your personal and business credit history as well as your business revenue. You’ll need to apply with the BDC to find out exactly what sort of interest rate you qualify for.

You’ll also need to be aware of any loan fees that apply. With a BDC small business loan, you’ll need to pay administration fees and an annual loan management fee of $150. However, there are no application fees or prepayment penalties to worry about.

Bottom line

If you’re looking for a small business loan, equipment financing or a wide range of other types of business financing, the BDC is well worth checking out. There are several loan options available and flexible terms, but you’ll generally need good credit to qualify. Check out our business loans guide and compare a range of lenders to find the right loan for your business.