Fast-growing businesses often face a cash flow crunch when trying to expand. Getting approved for traditional loans can be difficult if your business is scaling quickly. The BDC Scale Up Loan Guarantee helps by supporting loans made by Canadian financial institutions, making it easier for growth-focused companies to access the capital they need.
The BDC Scale Up Loan Guarantee is not a grant. It is a repayable loan supported by a BDC guarantee, delivered through participating banks and credit unions across Canada.
Here’s how it works:
Because BDC covers part of the risk, lenders may be more willing to approve financing for businesses that are scaling but do not yet fit traditional lending models.
Eligibility is determined by the participating lender, not by BDC directly. In general, the program is designed for:
Your lender will look at your financial health, your growth strategy, and your ability to repay the loan.
There is no publicly stated maximum loan amount under the BDC Scale Up Loan Guarantee. The amount you can get depends on:
Loan terms, interest rates, and repayment schedules are set by your financial institution, not by BDC.
This program is intended for growth-focused expenses, such as:
Using the loan for personal expenses or non-growth costs can reduce your chances of approval.
You do not apply directly to BDC for this program. Applications are handled by participating lenders.
Contact your bank or credit union
Ask if they participate in the BDC Scale Up Loan Guarantee.
Prepare a strong business plan
Show how the loan will support your company’s growth.
Gather your financial documents
This usually includes recent statements, forecasts, and cash flow projections.
Lender assessment
Your financial institution reviews your application and may request the BDC guarantee.
Loan approval and funding
If approved, your lender provides the funds and manages repayment.
Tools like GrantHub’s eligibility matcher can help you compare loan and grant programs by province and business stage, making it easier to find the right fit for your needs.
Thinking the program is a grant
This is a repayable loan. You must show you can repay the funds.
Applying directly to BDC
You must apply through a participating financial institution.
Lacking a clear growth plan
Vague or survival-focused plans lower your approval chances.
Overlooking other funding options
Many businesses use BDC-backed loans alongside grants or tax credits to reduce risk.
Q: Is the BDC Scale Up Loan Guarantee a grant?
No. It is a repayable loan with a BDC guarantee. You are required to repay the full amount under your lender’s terms.
Q: Who decides if I qualify?
Your bank or financial institution decides. BDC does not publish a fixed eligibility checklist for this program.
Q: How much can I borrow?
Loan amounts vary. The lender sets the amount based on your business profile and growth plans.
Q: Are BDC-backed loans considered taxable income?
No. Loans are not taxable income. However, interest payments may be claimed as a business expense.
Q: What types of businesses benefit most?
Companies that are expanding, scaling, or investing in productivity improvements are strong candidates.
GrantHub tracks hundreds of active grant and financing programs across Canada. Review your options before committing to a loan to make sure you choose the best fit for your business.
The BDC Scale Up Loan Guarantee can help your business grow if you need lender support to secure financing. Before applying, compare this loan with grants, tax credits, and other BDC financing programs to lower your risk. GrantHub lets you see these options side by side, so you can make an informed decision for your business growth.
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