BDC Working Capital Term Loan

The BDC Working Capital Loan helps Canadian entrepreneurs access flexible financing to support cash flow, bridge short-term gaps, or invest in business improvements without affecting existing lines of credit.

Business Development Bank of Canada

Overview of the BDC Working Capital Term Loan program:

The Working Capital Loan offered by the Business Development Bank of Canada (BDC) is tailored for Canadian small and medium-sized enterprises (SMEs) seeking to improve their financial flexibility. This loan is ideal for businesses needing quick access to capital for operational improvements, project execution, or unexpected expenses. Designed as a complement to existing financing, the loan allows companies to invest in new technologies, process upgrades, marketing strategies, or short-term growth opportunities without tying up personal assets or credit lines. BDC promotes this as a solution to help businesses stay competitive and adapt to changing conditions—especially during periods of growth or economic uncertainty. BDC provides fast approval and disbursement, with a strong focus on maintaining cash flow and business stability. The loan features flexible repayment terms and principal postponement options (i.e., deferring principal payments for the first months), which are especially beneficial for businesses investing in long-term gains. Additionally, borrowers benefit from unsecured lending, meaning no collateral is typically required, making this an accessible tool for entrepreneurs looking to act quickly without jeopardizing assets or operational security. BDC’s goal is to support the long-term financial health and operational agility of Canadian-owned businesses.

Benefits of the BDC Working Capital Term Loan program:

Access up to $250,000 in unsecured working capital
No collateral required (in most cases)
Option to postpone principal payments for up to 6 months
Fixed interest rate, customized based on business profile
Fast and easy online application
Maintain operational stability while investing in:
New technology
Marketing campaigns
Inventory or hiring
Business model transformation
Digital tools and automation
Preserves lines of credit for day-to-day operating expenses
Supported by BDCs advisory services for long-term growth planningFinancing you can use to
Complement your line of credit
Purchase inventory to fulfill orders quickly.
Launch growth projects
Expand into new markets, develop new products, protect intellectual property, launch a marketing campaign.
Improve profitability
Pay suppliers upfront to get special discounts, obtain certification, train employees.

Eligibility criteria of the BDC Working Capital Term Loan program:

To be eligible for a BDC Working Capital Loan, businesses must meet the following conditions:
Location: Must be based in Canada
Ownership: Must be Canadian-owned and operated
Business Status:
Typically in operation for at least 12 months
Startups may need to show strong financials or alternate BDC support channels
Creditworthiness:
Businesses must demonstrate solid financial management
A strong business plan and financial projections are recommended
Use of Funds:
Loan must be used for working capital needs (not real estate purchases)
Eligible expenses include:
Hiring staff
Equipment leasing
Market expansion
Cash flow support during seasonal fluctuations
Security:
Most loans are unsecured, but BDC may evaluate business performance and risk
Exclusions:
Businesses with unresolved tax issues or in bankruptcy may not be eligible