BDC Startup Financing: Who Qualifies and What You Get
Learn how new businesses can access loans to cover startup costs and working capital through BDC financing.
This financing program provides loans to new businesses to help cover initial startup costs and day-to-day working capital.
Who it's for
This scheme is designed specifically for startups that are in their very early stages of operation. To qualify, your business must have less than 12 months of revenue. It is built for entrepreneurs who are moving past the initial concept phase and into the early stages of generating income.
What you get
If you qualify, you can access loans up to $150,000 CAD. This capital is intended to help you manage various essential business needs, such as covering your initial startup costs or providing necessary working capital to keep your operations running smoothly during those critical first months of growth.
What it costs you
While the exact interest rates vary depending on your specific circumstances, there are other factors to consider. You should be prepared for the possibility that a personal guarantee will be required to secure the financing. This means you may be held personally responsible for the debt if the business cannot repay the loan.
The catch to know
The most important thing to understand is that this program is not for unproven ideas alone. While many people start with just a concept, the lenders look for a solid, well-developed business plan. You must demonstrate that you have a clear strategy and a realistic path to success to be considered for a BDC loan.
How to apply
- Develop a comprehensive and professional business plan that outlines your strategy and financial projections.
- Visit the official portal to review the specific requirements and documentation needed for your application.
- Submit your formal application through the official website to begin the review process.