Early-stage cash flow is tight for most Canadian startups. Even businesses with sales often struggle to cover payroll, marketing, and supplier costs while trying to grow. BDC Start-Up Financing helps fill this gap. It offers up to $150,000 in repayable financing with repayment options that can support working capital and early growth.
This funding is not a grant. It is a loan designed for young businesses that have moved past the idea stage and are generating revenue.
BDC Start-Up Financing is a federal loan program from the Business Development Bank of Canada. It supports for-profit businesses that are early in their lifecycle but already operating.
To qualify, your business must:
BDC looks beyond traditional bank ratios, but credit still matters. This program is not for pre-revenue startups.
Many founders use BDC Start-Up Financing to cover working capital needs. The loan can help stabilize daily operations after launch.
BDC lets you use loan funds to replenish working capital spent on start-up expenses. Many traditional lenders do not allow this. Some banks only allow loans for new purchases or assets, but BDC recognizes that start-ups need to restore their cash after launch costs.
Many early-stage businesses choose BDC over standard commercial loans because of these repayment options and the chance to restore working capital.
BDC Start-Up Financing can also fund early growth. This is helpful when revenue is coming in but profit margins are still thin.
You can defer principal repayments for up to a year. This means you can invest in growth before full loan payments begin.
If you want to see how BDC Start-Up Financing fits with other federal or provincial programs, tools like GrantHub’s eligibility matcher can help you compare your options.
BDC’s process is more relationship-focused than most banks.
BDC acts as a long-term partner, not just a lender. Advisors look at your business potential, not just past financial ratios.
BDC Start-Up Financing requires at least 12 months of operations and revenue. Pre-revenue businesses are usually declined.
This is a repayable loan, not non-repayable funding. You need a clear plan for repayment.
BDC reviews your personal credit history. Weak or inconsistent credit can slow your application.
Saying you need money for “growth” is not enough. Be clear about your working capital needs or specific investments.
Q: Is BDC Start-Up Financing a grant or a loan?
It is a repayable loan, not a grant. Loan proceeds are not taxable, but interest payments are not credits.
Q: How much funding can I get?
Eligible businesses can access up to $150,000, depending on creditworthiness and business profile.
Q: Can I defer loan payments?
Yes. Principal payments can be deferred for up to 12 months, which helps protect early cash flow.
Q: What can I spend the funds on?
You can use funds for working capital, equipment, marketing, advisory services, and franchise fees.
Q: Does BDC check personal credit?
Yes. A good personal credit track record is required.
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