If you plan to apply for a BDC or regional business loan, your down payment is a key factor in getting approved. Canadian lenders want to see that you are willing to invest your own money. This helps share the risk and shows your commitment. The amount you need depends on the lender, the type of loan, and your business situation. Most lenders require 5% to 30% of the total project cost as a down payment.
Below, you’ll find clear details about what BDC and regional lenders expect, with real examples and numbers.
BDC does not have one rule for down payments across all loans. Instead, it looks at your risk, assets, and cash flow.
What you should know:
BDC loans are repayable and meant to work with bank loans, not replace them.
Regional lenders usually set clear minimums.
Main terms:
Evol supports entrepreneurs from under-represented communities. It is often more flexible than traditional banks, but the down payment is still required.
This 5% minimum is one of the lowest for conventional business loans in Canada.
This program does not use the word “down payment,” but it limits how much it will finance.
Key funding rule:
Loan details:
This means a 20% owner contribution is needed.
| Lender Type | Typical Down Payment |
|---|---|
| BDC | 10%–30% |
| Evol (conventional loan) | Minimum 5% |
| Regional development funds | 15%–30% |
| Innovation-focused loans | Often 20% |
If you want to filter programs by province, lender type, or minimum owner contribution, tools like GrantHub’s eligibility matcher can help.
Lenders accept more than just cash, but your contribution must be real and documented.
Accepted forms:
Usually not accepted:
Each lender has its own rules. Always check before you apply.
Thinking all loans have the same rules
BDC, Evol, and regional funds use different models. Read the terms for each program.
Using borrowed money as your contribution
If your down payment comes from personal loans or credit cards, many lenders will not accept it.
Forgetting about fees
Setup and management fees are not usually financed. You must pay them separately.
Applying without proof of funds
Lenders need bank statements or shareholder agreements before approving your loan.
Q: What is the minimum down payment for a BDC business loan?
BDC does not publish a fixed minimum. Most approved deals require 10%–30% owner contribution, based on risk and assets.
Q: Can I get a business loan in Canada with only 5% down?
Yes. Some regional lenders, such as Evol, allow a minimum 5% down payment for eligible borrowers.
Q: Do startups need a higher down payment than existing businesses?
Usually yes. Startups often face 20%–30% requirements due to higher risk and limited cash flow.
Q: Does a regional development loan count as a grant?
No. Programs like Evol and PME MTL offer repayable loans, not grants.
Q: Can grants be used as a down payment for a loan?
Sometimes. Some lenders accept approved grants as part of your project contribution, but you must check with the lender first.
Rules for down payments can be different for each lender and program. Small details can affect your approval. GrantHub tracks hundreds of active loan and grant programs across Canada, including minimum owner contribution requirements. Checking which programs fit your business before you apply can save time and help you avoid mistakes.
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