BDC Equipment Loan
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Eligibility & Details
What this program funds and who can apply
Program Description
Financing to purchase or refinance machinery, vehicles, and other business equipment, covering up to 125% of the purchase price to also fund related costs like installation. Offers up to 12 years to repay, including up to 24 months of interest-only payments to ease cash flow while the equipment ramps up. Requires at least 12 months of revenue-generating operations in Canada.
Eligibility Requirements
- Business based and operating in Canada
- Generating revenue for at least 12 consecutive months
- Good personal and business credit history
- Financing is for production machinery, automated equipment/robotics, commercial vehicles, or renewable energy/waste management equipment (new or used)
- Loan structure and rate depend on business profile, equipment type, and requested term
Quick Assessment
Funding Details
- Amount
- Varies; finances up to 125% of equipment purchase price (no published dollar minimum/maximum)
- Type
- Loan
- Level
- Federal
- Co-Funding
- Up to 125% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win BDC Equipment Loan
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 5-document checklist with what each reviewer is actually checking
- 6-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 3-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
Applying for BDC Equipment Loan? Most founders end up needing more than one template — grab the Founder Pack ($59 · saves $27 vs separate) →
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipBDC's Equipment Loan can finance up to 125% of the purchase price; the extra 25% is meant to cover related costs like installation, delivery, or software that often get missed in a straight equipment quote. There's also an 'Equipment line' variant for businesses that need to make multiple equipment purchases over a 12-24 month window, with up to 2 years of additional credit availability before a 6-year repayment period begins; useful if you're scaling up several pieces of equipment rather than buying just one. BDC does not publish a minimum or maximum loan amount for this product on its site; the up-to-12-year term and up-to-24-month interest-only period are the two structural details it does confirm. Get a vendor quote before applying; it speeds up underwriting.
Success Profile
An established Canadian business (12+ months of revenue-generating operations) that needs to purchase or upgrade machinery, vehicles, or equipment and wants to preserve cash by spreading the cost over up to 12 years, with an interest-only ramp-up period. Good fit for manufacturers, transportation/logistics businesses, and any operation with a concrete equipment quote in hand.
Evaluation Criteria
BDC evaluates equipment financing requests based on business creditworthiness, at least 12 months of revenue-generating operations, the nature and useful life of the equipment being financed, and the borrower's cash flow capacity to support repayment. Not competitively adjudicated; approval depends on underwriting standards, not competition against other applicants.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 5
Eligible Expenses 6
- Production machinery and automated equipment/robotics purchases
- Commercial vehicle purchases (new or used)
- Renewable energy equipment
- Waste management equipment
- Installation, delivery, and related setup costs (within the 125% financing ceiling)
- Refinancing of previously purchased eligible equipment
Ineligible Expenses 4
- Real estate purchases (separate BDC product exists)
- Business acquisitions (separate BDC product exists)
- General working capital unrelated to equipment (separate BDC product exists)
- Personal expenses of the business owner
Intake Periods
Ongoing; no intake windows. BDC accepts equipment financing requests year-round through its online portal.
Deadline Notes
Ongoing; BDC accepts equipment financing applications year-round with no intake deadlines.
Open Application Portal →Ineligible Organizations
- Businesses generating revenue for less than 12 months
- Businesses not based or operating in Canada
- Businesses with poor personal or business credit history
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskHow BDC Equipment Loan Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| BDC Equipment Loan | Varies; finances up to 125% of... | Easy | Advance Payment | Ongoing |
| Canada Small Business Financing Program | Up to $1.15 million | Easy | Mixed (Advance + Reimb.) | Ongoing |
| BDC Small Business Loan | Up to $350,000 | Easy | Advance Payment | Ongoing |
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Frequently Asked Questions
Quick answers to the questions founders most often ask about BDC Equipment Loan