Business Development Program (BDP) - ACOA

Insider Tip

The BDP is still listed on ACOA's website, but the 2023 evaluation showed commercial activity collapsed to just 6 projects by 2021-22. In practice, ACOA may steer your project toward REGI Business Scale-up (BSP) instead. When you call your regional office (1-888-576-4444), don't ask for 'the BDP' specifically — describe your project and let the program officer recommend the best fit. ACOA is relationship-based: the officer who guides your pre-submission consultation becomes your advocate internally. The conditionally repayable option is the hidden gem — if structured correctly, contributions may never need to be repaid if commercial conditions aren't triggered. Ask about conditional vs. unconditional repayment terms during your initial consultation.

Rejection Pitfalls 8

• Business not located in or benefiting Atlantic Canada (NL, PE, NS, NB)
• Incomplete application — missing financial statements, business plan, or ownership documents
• Project already started before ACOA approval — retroactive costs are generally ineligible

Success Profile

Atlantic Canada-based SME (NL, PE, NS, NB) in any industry. For Commercial Component: business with a defined capital investment project (equipment, expansion, modernization) and ability to co-fund at least 50%. For Competitiveness Component: existing business seeking to improve through training, marketing, productivity, or quality certification with 25% co-funding capacity. The ideal BDP applicant has an established relationship with their regional ACOA office, a clear project plan with measurable outcomes, and has incorporated program officer feedback into their application before formal submission.

Evaluation Criteria

Non-competitive eligibility assessment. ACOA evaluates: (1) Atlantic location, incorporation age (2+ years required), sector eligibility; (2) financial viability to co-fund (50% capital, 25% soft costs); (3) expected economic impact (jobs, revenue, exports) quantified credibly; (4) additionality (project delayed or scaled back without ACOA); (5) project readiness with validated costs and confirmed co-funding; (6) pre-application consultation completed with positive advisor assessment.

Application Steps

Required Documents 7

Eligible Expenses 10

• Capital equipment and machinery purchases (new or substantially upgraded)
• Software, digital systems, and technology adoption
• Leasehold improvements directly enabling the project
• Construction costs directly tied to expansion or equipment installation
• Salaries for project-dedicated staff (documented, time-attributed)
• Professional fees: engineering, consulting, testing, certification
• Market research and strategic planning (competitiveness component)
• Trade show participation and export market development (competitiveness component)
• Quality certification costs (ISO, HACCP, etc.)
• E-commerce platform development

Ineligible Expenses 11

• Land and real estate purchase
• General working capital and operating expenses
• Routine marketing and advertising not tied to a defined export or growth project
• Debt refinancing and loan repayment
• Goodwill and intellectual property at inflated valuations
• Costs incurred before ACOA approval
• GST/HST (recovered via input tax credits)
• Personal living expenses of business owners
• Alcohol, entertainment, and hospitality costs
• Interest charges and financing costs
• Activities already funded under another federal contribution

Intake Periods

Continuous year-round intake since 1995. Budget runs on federal fiscal year (April 1 – March 31). Q1 (April–June) submissions get freshest budget allocation.

Deadline Notes

The BDP has operated on continuous intake since inception in 1995. No application windows. However, budget availability fluctuates through the fiscal year (April 1 – March 31). The 2023 evaluation showed BDP commercial activity dropped dramatically (from $171M/yr to $15M/yr by 2021-22). The program authority remains active, but practical funding may be redirected to REGI Business Scale-up. Always confirm current funding availability with regional ACOA office.

Open Application Portal →

Ineligible Organizations

• Federal government entities
• Provincial and municipal governments and their agencies
• Crown corporations
• Unincorporated individuals
• Companies with fewer than 2 years of commercial operations
• Businesses not primarily operating in Atlantic Canada (NB, NS, PE, NL)
• Financial institutions and insurance companies as primary activity

Compatible Programs

Clawback Risk

Low Risk

Low-to-moderate. Risk is mainly triggered by: company sale or merger within 2-3 years post-completion; cessation of Atlantic Canadian operations; project fails to proceed as described; ownership transfer triggers ACOA repayment assessment. Conditionally repayable contributions have additional complexity — if commercial conditions ARE met (product generates revenue), full repayment obligation is activated.