If you need flexible financing for day-to-day costs or your next growth project, the BDC Small Business Loan is a common option for Canadian small businesses. Offered by the Business Development Bank of Canada (BDC), this is a repayable loan (not a grant). It’s designed for established businesses needing working capital or project funding. BDC offers online loans up to $350,000. You may be able to pay interest only at the start of the term.
The BDC Financing — Small Business Loan is a federal loan program for for‑profit businesses operating in Canada. You can use it for many business expenses, such as inventory, marketing, or supplier payments.
Key loan details
BDC gives these loans to businesses with steady operations and revenue.
To qualify for a BDC Small Business Loan, your business must meet certain criteria. BDC makes final decisions based on risk and financial strength.
You may be eligible if your business:
BDC does not list a minimum credit score, but weak credit is a common reason for rejection.
Tools like GrantHub’s eligibility matcher can help you see if BDC financing — and other government loans — fit your business profile.
BDC allows broad use of funds, making this loan more flexible than many grant programs.
Eligible uses include:
You can use the BDC Small Business Loan for short-term cash flow or planned growth projects.
For more details, see also:
What Business Expenses Are Eligible Across Canadian Grants and Loans?
BDC offers a simple online process, but being prepared helps your chances.
Application steps
Approval timelines can vary, but BDC advertises faster decisions than most banks.
BDC may ask for different documents based on loan size and risk. Most applicants should prepare:
Commonly requested documents
Larger loans or higher-risk cases may need cash flow projections or extra guarantees.
Applying too early
Businesses operating for less than 24 months usually do not qualify.
Poor credit preparation
BDC checks personal credit. Unresolved credit issues can lead to rejection.
Vague use of funds
Clearly explain how the loan will help your business.
Confusing loans with grants
The BDC Small Business Loan must be repaid, with interest.
Q: Is the BDC Small Business Loan a government grant?
No. It is a repayable loan, not a non-repayable grant. You must repay both principal and interest.
Q: How much can I borrow with a BDC Small Business Loan?
BDC offers loans from $10,000 up to $350,000, depending on your business needs and financial profile.
Q: Do I need collateral for a BDC Small Business Loan?
Collateral requirements vary. Some loans may require security or personal guarantees, depending on risk and loan size.
Q: How long does BDC take to approve a loan?
BDC promotes fast online applications, but timelines depend on your documents and risk assessment.
Q: Are BDC loan payments tax deductible?
Interest payments may be deductible as a business expense. The principal repayment is not. Ask your accountant for details.
A BDC Small Business Loan can help cover gaps that grants cannot, especially for working capital and operating costs. GrantHub tracks hundreds of active grant and loan programs across Canada — check which ones match your business profile and see how BDC financing could work with other funding options.
You may also want to explore:
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