BDC's start-up loan is not for businesses that have not started. To qualify, you need at least 12 consecutive months in business and revenue coming in.
That surprises a lot of founders. They search for a BDC startup loan, find a product called Start-up Financing, and then learn the requirements assume a year of trading. BDC does lend to newer businesses, but through different routes, and which one fits depends mostly on how long you have been operating.
This guide maps all four BDC routes by business age, sets out the published requirements for each, and explains what BDC looks at when it reviews an application. You can apply to BDC directly. If you want help getting the file ready, that is where we come in.
BDC loan requirements for startups, by business age
If you are looking for a business loan for startups from BDC, the right product depends mostly on how long you have been operating.
| Where you are | BDC route | Amount | Key requirements |
|---|---|---|---|
| Not yet operating, or under 12 months | Futurpreneur Startup program, with a BDC co-loan | Up to $75,000 total (up to $25,000 Futurpreneur plus up to $50,000 BDC) | Age 18 to 39, business plan and 24-month cash flow, two years of mentorship |
| 12 to 24 months, generating revenue | BDC Start-up Financing | Up to $150,000 | Based in Canada, at least 12 consecutive months in business, generating revenue, good track record |
| 24 months or more, profitable | BDC Small Business Loan (online) | Up to $350,000 | Revenue of at least $100,000 (or $250,000 above $100,000 borrowed), personal credit score 600+, currently profitable |
| 12 months or more, banking with a partner lender | Business Accelerator Loan Program, through your bank | $25,000 to $500,000 | Revenue under $10 million, partner lender is your primary financial institution, 85% BDC guarantee |
Details for the Futurpreneur route are in our guide to Futurpreneur loans, and the bank route is covered in our guide to the Business Accelerator Loan Program. The rest of this article focuses on BDC Start-up Financing.
What BDC Start-up Financing offers
According to BDC, Start-up Financing provides up to $150,000, subject to approval and conditions, for businesses in their first couple of years of operation. The published features:
- Interest-only payments for up to the first 12 months, which keeps payments low while the business finds its feet.
- A longer amortization period than a typical bank term loan. BDC does not publish the exact length.
- Payments matched to your cash flow cycle, which helps seasonal businesses.
- A commitment not to change terms or demand early repayment without a valid reason.
BDC lists these uses: buying assets, paying start-up fees, buying a franchise, marketing, building a website, and hiring a consultant. For a business that is mostly buying equipment, equipment financing secured by the asset may be a better fit, or a useful complement.
What does a BDC startup loan cost?
BDC does not publish a rate for Start-up Financing. For its Small Business Loan, BDC says the rate is its floating base rate plus a variance based on your personal and business information, so two applicants on the same day can get different rates. Expect Start-up Financing to be priced on your risk profile too.
Two practical points. Interest-only periods lower your early payments but not your total cost, because the principal still has to be repaid over the remaining term. And BDC is a lender, not a grant program: everything you borrow is repaid with interest.
Equipment financing for a new business
If most of what you need is equipment, a BDC loan is not your only option, and it may not be the cheapest. Many lenders offer equipment financing for a new business because the equipment itself secures the loan. That makes a short trading history less of an obstacle than it is for an unsecured loan.
Lenders financing equipment for a newer business generally look at the owner's personal credit, a supplier quote or invoice, the type and age of the equipment, and how much you can put down. A personal guarantee is common. Leasing is another route for start-up equipment, especially for items you will want to upgrade later.
Pairing the two often works well: equipment financing for the machinery, and BDC or Futurpreneur funds kept for working capital, marketing and the costs no lender will secure. Qualifying equipment bought now may also be eligible for the proposed Productivity Mega Deduction. See our equipment leasing and financing page for start-up equipment options.
What BDC looks at
BDC says it looks beyond banking ratios, reviewing your business plan, your overall potential and your experience. That is good news for a business with a short track record, but it also means the quality of your application matters more than it would at a bank that runs mostly on ratios. In our experience, a strong file covers:
A clear use of funds
Exactly what the money buys, what it costs, and how each item produces revenue or saves money. "Working capital" on its own is not a use of funds.
A cash flow forecast that ties to your actual results
Twelve months of real revenue gives a reviewer a baseline. Your forecast should start from it and explain any jump, rather than projecting a hockey stick from month one.
Evidence you can run this business
Industry experience, training, contracts, repeat customers. BDC specifically lists your experience as part of its review.
Clean personal and business records
Tax filings up to date, business banking separate from personal, and financial statements that match your bank deposits. Credit history matters, and the Small Business Loan publishes a 600 minimum score.
How to apply to BDC directly
BDC's own process has three steps: submit a loan request online (checking eligibility, describing the project and giving business details), speak with a BDC representative who calls to go through the project, then receive a tailored offer if approved. BDC says its initial online questions do not affect your credit. You can also reach BDC's Business Solutions Centre at 1-877-232-2269.
Plenty of founders do this on their own and do well. If your numbers are straightforward and your plan is written, apply directly.
Where a broker helps
Canada Business Loan Experts helps applicants work out which route fits, then get the file ready: the use of funds, the cash flow forecast, the financial statements and the story that ties them together. We also look at the whole picture. If BDC is not the best fit, or declines, we work with 30+ lenders including banks, credit unions and alternative lenders, so you are not starting over. For businesses that need broader preparation, see CBLE Funding Advisory.
How we are paid
Canada Business Loan Experts is an independent commercial finance broker. We are not part of BDC and do not make lending decisions. We may be compensated by lenders, including BDC, when we introduce and package an application. You can always apply to BDC directly, and engaging us does not guarantee approval.
If your business is in BC and you are also looking at government programs, our roundup of BC business funding for 2026 covers what is open now.
BDC startup loan FAQ
What are the BDC startup loan requirements?
BDC Start-up Financing requires a business based in Canada that has been operating for at least 12 consecutive months, is generating revenue and has a good track record. It offers up to $150,000, subject to approval. Businesses that are not yet operating, or are under 12 months old, generally look at the Futurpreneur Startup program with its BDC co-loan instead.
Can I get a BDC loan with no revenue?
Not through BDC Start-up Financing, which requires revenue and 12 months of operation. Founders aged 18 to 39 with a pre-revenue or newly launched business can apply to Futurpreneur's Startup program, which can include up to $50,000 in BDC financing alongside up to $25,000 from Futurpreneur.
What is the difference between BDC Start-up Financing and the BDC Small Business Loan?
Start-up Financing is for businesses with 12 to 24 months of operation and offers up to $150,000 with interest-only payments for up to 12 months. The Small Business Loan is applied for online, offers up to $350,000, and generally requires 24 months in business, at least $100,000 in revenue, current profitability and a personal credit score of 600 or more.
What interest rate does BDC charge on startup loans?
BDC does not publish a fixed rate for Start-up Financing. For its Small Business Loan, BDC prices loans at its floating base rate plus a variance based on personal and business information, so rates differ between applicants. Ask BDC for your specific rate and compare the total cost over the term, not just the payment.
Does applying to BDC affect my credit?
BDC says its initial online eligibility questions have no impact on your credit. A full credit review is part of the formal application if you proceed. If you are applying to several lenders, ask each one when a credit check will happen so you are not surprised.
Can CBLE help with a BDC loan application?
Yes. Canada Business Loan Experts helps applicants confirm which BDC route fits and prepare the use of funds, cash flow forecast and supporting documents. We are an independent broker, not part of BDC, and may be compensated by lenders including BDC. You can also apply to BDC directly.
Not sure which BDC route fits?
Fifteen minutes is usually enough to tell you which program to apply to, and what your file needs first.
Prefer to start by phone? Call (604) 762 7350.
Program information checked October 19, 2026, from BDC's Start-up Financing, Small Business Loan and Business Accelerator Loan Program pages and Futurpreneur's Startup program page. Confirm current terms with BDC before applying. BDC is a trademark of the Business Development Bank of Canada. This article is general information, not financial advice.
