Updated August 2026 · Verified against BDC guidelines
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Loan Federal Active

BDC Business Purchase or Transfer Loan

BDC
Loan Range
No fixed loan amount is published; financing is sized to the...
Open continuously — loans are reviewed once the buyer has a negotiated agreem...
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Difficulty
Hard
Payment
Loan
Trend
Growing
First-Timers
—
Financing share
Varies
BDC Business Purchase or Transfer Loan provides up to No fixed loan amount is published; financing is sized to the buyer's negotiated purchase agreement (agreed purchase price, letter of offer, and closing date) and can also cover legal fees and other one-time transfer costs. BDC provides financing for buyers who have a negotiated agreement to purchase an existing business, including support for legal fees and other one-time transfer costs. Applications are accepted on an ongoing basis.

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Eligibility & Details

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Program Description

BDC provides financing for buyers who have a negotiated agreement to purchase an existing business, including support for legal fees and other one-time transfer costs. Loans are reviewed once the buyer has an agreed purchase price, letter of offer, and closing date.

Eligibility Requirements

  • BDC can only review a loan request once the buyer has a negotiated agreement to purchase another company.
  • Required supporting documents include an agreed purchase price, a letter of offer, and a closing date.
  • Financing can cover one-time costs such as legal fees and moving expenses.
  • Specific eligibility requirements (e.g., Canadian-based revenue-generating business, buyer citizenship or permanent-resident status, track record) are not stated on the program page.
Provinces
Industries
All
Business Stage
Startup Growth Established

Quick Assessment

Difficulty
Hard
Competition
Low
First-Timer
Not rated

Funding Details

Amount
No fixed loan amount is published; financing is sized to the buyer's negotiated purchase agreement (agreed purchase price, letter of offer, and closing date) and can also cover legal fees and other one-time transfer costs.
Type
Loan
Level
Federal
Deadline
Open continuously — loans are reviewed once the buyer has a negotiated agreement to purchase a business

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Varies
Accessibility
3/5

Moderate — standard application process

Competition
2/5

Below average competition

Difficulty
4/5

Complex — detailed documentation needed

Processing Time
Budget Trend
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How to qualify

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Prepare the negotiated purchase agreement and closing timeline before applying; the page is an overview, so contact BDC directly to confirm full eligibility and terms.

Rejection Pitfalls 3

  • No negotiated purchase agreement yet in place
+2 more pitfalls
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Success Profile

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Evaluation Criteria

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Premium All 3 pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓

How BDC judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Written answers1≈100 words from the funder’s limits
To attach3 documents

Distilled from 1 source document on bdc.ca, condensed into one brief. Sources as of 2026-09-07.

1 source

What BDC favours

Unfinished details are okay; we help with next steps◦

“If some details are still being finalized, that's okay. We can help identify resources and next steps.”

The form1 prompts shown

Eligibility1 section
  1. 1Eligibilityselectionno limit
Project goal1 section
  1. 2Project goalselectionno limit
Loan application1 section
  1. 3Loan applicationshort answerno limit
How can we reach you?5 sections
  1. 4How can we reach you?short answerno limit
  2. 5How can we reach you?short answerno limit
  3. 6How can we reach you?short answerno limit
  4. 7How can we reach you?short answerno limit
  5. 8How can we reach you?selectionno limit
Your business transfer project1 section
  1. 9Your business transfer projectcheckboxesno limit
Your business purchase or transfer project5 sections · ≈100 words
  1. 10Your business purchase or transfer projectselectionno limit
  2. 11Your business purchase or transfer projectselectionno limit
  3. 12Your business purchase or transfer projectselectionno limit
  4. 13Your business purchase or transfer projectselectionno limit
  5. 14Your business purchase or transfer projectwritten answer · 500 characters

    How do you plan to use the funds? You can also provide any additional information that may help us understand your project.

Information about the business you want to buy7 sections
  1. 15Information about the business you want to buyshort answerno limit
  2. 16Information about the business you want to buyselectionno limit
  3. 17Information about the business you want to buyselectionno limit
  4. 18Information about the business you want to buyshort answerno limit
  5. 19Information about the business you want to buyshort answerno limit
  6. 20Information about the business you want to buyshort answerno limit
  7. 21Information about the business you want to buyshort answerno limit

bar = length the funder allows, from its stated limits

20 more prompts, in the funder’s words

Judged against4 questions

  1. 1

    Is this a real, defined transaction?

    Show them State the asset or share structure, the purchase price and how it was set, the down payment, and when you expect to close.◦

  2. 2

    Where is the money coming from?

    What to show them in Premium

  3. 3

    Is the target business a sound one?

    What to show them in Premium

  4. 4

    Do you know what you are buying?

    What to show them in Premium

Premium · the rest of this brief

See the rest of this brief. Then we draft your application for you.

20 more prompts

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Documents to attach3

Ticks are kept on this device.

From application to money

  1. Submit your requestRequest submitted to BDC
  2. BDC reviews itBDC reviews and may ask more
  3. Funds at closingFunds available at closing
In the funder’s words · 3
Submit your request
Complete the eligibility check and loan request, then submit it to BDC.
BDC reviews it
BDC reviews the request and may ask you for more information.
Funds at closing
Tell BDC when you want the funds available and when you expect the transaction to close.

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to secure BDC Business Purchase or Transfer Loan

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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Application Playbook

Step-by-step process, required documents, and expenses

Premium 3 steps 6 docs

Application Steps

1 Negotiate a purchase agreement Reach a negotiated agreement to buy another company, including an agreed purchase price, a letter of offer, and a closing date.

Required Documents 6

✓ Negotiated purchase agreement for the target business
✓ Agreed purchase price documentation

Eligible Expenses 5

Deadline Notes

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Stacking partner data not yet available.

Combined Funding Potential See your total funding potential

Clawback Risk

Not-applicable Risk
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How BDC Business Purchase or Transfer Loan Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
BDC Business Purchase or Transfer Loan No fixed loan amount is published Hard Loan Open continuously —...
Black Entrepreneurship Program Up to $250,000 Moderate Loan Ongoing
Canada Small Business Financing Program Up to $1.15 million Easy Mixed (Advance + Reimb.) Ongoing
Investissement Québec — Project Finan... Varies Hard Mixed (Advance + Reimb.) Ongoing
Futurpreneur Canada Startup Program Up to $75,000 Moderate Loan Ongoing

Related Programs

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Frequently Asked Questions

Quick answers to the questions founders most often ask about BDC Business Purchase or Transfer Loan

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I'm thinking of buying a business soon. Can I pre-qualify for a loan?
BDC can only review your request for a loan once you have a negotiated agreement to buy another company and the relevant documents to support it, such as an agreed purchase price, a letter of offer, and closing date.
Does BDC help entrepreneurs find businesses to buy or sell to?
BDC's experts can help you navigate the business transition process, either as a seller or new owner, but do not have information on what businesses are available on the market.
What support does BDC offer for buying or selling a business?
Financing options, resources like guides and toolkits, and personalized advice to help clients navigate business transfers, acquisitions, and succession planning for both buyers and sellers.
Why is now a significant time for business transfers in Canada?
Over 140,000 Canadian businesses are expected to be up for sale by 2030 as thousands of owners retire, creating an opportunity for entrepreneurs to take over existing businesses.
What are the advantages of acquiring an established business?
Stable revenue, proven systems, a loyal client base, and opportunities to scale and innovate without starting from scratch.

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