What is BDC?
Business Development Bank of Canada — a federal Crown corporation that provides financing, advisory services, and growth capital to Canadian SMBs.
BDC (Business Development Bank of Canada) is a federal Crown corporation established to support Canadian small and mid-sized businesses. Unlike commercial banks, BDC's mandate is developmental — it accepts higher risk and longer payback periods than chartered banks.
What BDC offers
- Term loans for equipment, technology, working capital, and acquisitions
- Subordinated financing that sits between senior debt and equity
- Commercial real estate financing
- Growth and transition capital for established businesses
- Venture capital for technology and innovation companies (BDC Capital)
- Advisory services — strategy, operations, HR, technology consulting
CDAP integration
Businesses that complete a Canada Digital Adoption Program (CDAP) digital plan become eligible for a 0% interest, 5-year term loan up to $100,000 from BDC. This is one of the highest-value financing offers available to Canadian SMBs.
How BDC differs from commercial banks
BDC will typically:
- Accept higher loan-to-value ratios
- Take secondary security positions
- Lend to earlier-stage businesses
- Offer longer amortization periods
In exchange, interest rates are typically 1–3% higher than equivalent chartered bank financing for prime borrowers.
Related terms
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