BDC business loans
Business financing with product-specific underwriting and terms. Direct lending typically requires revenue history; earlier founders may fit BDC partner programs.
- Geography
- Canada
- Amount
- Amount not publicly stated
Funding guide
Startup loans and financing in Toronto and Ontario
Compare startup loans, repayable financing and non-dilutive capital by cash-flow fit, eligibility and repayment risk.
Compare the obligation, not just the loan amount
Ask each lender for the same five details: payment schedule, rate and fees, security, personal guarantees and the total amount repaid. A government-backed loan still has to be repaid by the borrower.
| Route | Repayment and cost | Security and guarantees | Application fit |
|---|---|---|---|
| Canada Small Business Financing Program | Term loan maximum rates: lender prime + 3% floating, or its residential mortgage rate + 3% fixed. Line of credit maximum: prime + 5%. Registration fee: 2% | Security required on financed property/equipment or other business assets. Lender may request an unsecured personal guarantee | Apply through a lender; business and eligible use-of-funds limits apply |
| Futurpreneur Core Startup | Startup loan with mentoring. Confirm the separate Futurpreneur and BDC schedules, rates and fees in your offer | Futurpreneur describes its startup loans as collateral-free; ask about personal liability and the BDC portion separately | Entrepreneurs aged 18–39; business plan and 24-month cash-flow forecast |
| BDC business financing | Terms, pricing, deferrals and prepayment costs depend on product and underwriting | Security and guarantees depend on the offer; request both in writing | Direct financing typically requires revenue history; early founders may fit partner programs |
| Women Entrepreneurship Loan Fund | Loans through approved delivery organizations; compare each provider's written terms | Provider-specific underwriting, security and guarantees | Women starting or growing businesses; availability differs by delivery organization |
Worked cost example, using assumptions rather than a lender quote: borrow $50,000 at a fixed 8% annual rate, amortized over 60 equal monthly payments, with a $1,000 fee paid upfront. The payment is about $1,013.82. Total scheduled payments are about $60,829.18; adding the fee gives $61,829.18, or $11,829.18 above principal. This excludes other fees and assumes interest is compounded monthly. It is not an APR calculation.
If that fee is financed, the balance becomes $51,000 and payments rise to about $1,034.10. A lower advertised interest rate can still produce a higher total cost when fees, insurance or a longer term are added. Compare offers using the same principal, term and payment frequency.
Before signing, model one late-paying customer and three months of lower sales. Ask whether interest accrues during a payment deferral, whether the rate can change, what prepayment costs apply, and when a guarantee can be enforced. Keep the signed offer beside the forecast.
Match the loan route to your stage and ownership
These routes add specific choices to the comparison above. An available application route still requires underwriting; a planned launch is not an open loan offer.
| Route | Fit and amount | Cost or preparation | Intake and next step |
|---|---|---|---|
| Futurpreneur Startup Program | Eligible citizens/permanent residents aged 18–39; up to $75,000 including BDC financing | Business plan and 24-month cash flow; compare the two lenders' repayment terms in the actual offer | Official application route available, no fixed deadline published. Speak with the program team or submit the completed planning documents |
| SOFII | Innovative high-growth southern Ontario SMEs; $150,000–$500,000 loans | Interest-bearing; no application fee or early-repayment penalty. Prepare commercialization, growth and repayment evidence | Regional enquiry/application route available, no fixed closing date stated. Use the official postal-code tool to reach the correct office |
| WEOC National Loan Program | Over 50% women-owned; gross annual revenue up to $2 million; up to $50,000 | Up to five-year term; English program page states a 2% administration fee, maximum $1,000, deducted on disbursement. Bring a plan and two-year forecast | Partner-led application route available, no fixed deadline stated. Work with a regional advisor to receive the application link |
| Women Entrepreneur Growth Financing — WEOC/BDC | Announced combined financing up to $200,000 for eligible women-owned businesses outside Quebec | Final eligibility, loan terms and application steps are still to be published | Not open. Planned for late 2026; no exact opening date confirmed. The National Loan Program above is a separate offer |
A fee deducted from a loan reduces the cash you receive. At the WEOC page's published 2% fee, a $50,000 approved loan would deliver $49,000 before any other conditions or deductions, while the principal remains $50,000. Confirm your signed terms and model interest separately.
For SOFII, explain the innovation and why the next commercial milestone can support repayment. For Futurpreneur, show how a new business reaches paying customers. For WEOC, check the ownership and applicant criteria before spending time on the forecast. Keep tax returns, identity documents and personal financial details in the lender's private application process.
Funding programs (8)
Canada Small Business Financing Program
Lender-delivered financing for eligible business assets and working capital. Interest, a 2% registration fee, security and possible personal guarantees must be included in the cost comparison.
- Geography
- Canada
- Amount
- Amount not publicly stated
Futurpreneur Startup Program
Loan financing up to $75,000 including BDC financing, with up to two years of mentorship, for eligible Canadian citizens/permanent residents aged 18–39. Prepare a business plan and 24-month cash flow. The application route is available; no fixed deadline is stated.
- Geography
- Canada
- Amount
- Up to $75,000
Invest Ontario Fund
Invest Ontario Fund provides tailored grants or loans for eligible high-impact investment projects in Ontario. Verify current fit and intake with the official source before applying.
- Geography
- Ontario
- Amount
- Amount not publicly stated
Southern Ontario Fund for Investment in Innovation (SOFII)
Interest-bearing loans of $150,000–$500,000 for innovative, high-growth SMEs in southern Ontario. No application fee and no early-repayment penalty. Contact the regional office through the official postal-code lookup; no fixed intake deadline is published.
- Geography
- Southern Ontario
- Amount
- $150,000 to $500,000
WEOC National Loan Program
Loans up to $50,000 for eligible businesses over 50% women-owned, with gross annual revenue up to $2 million. Applicants must be 19+, Canadian citizens/permanent residents living in Canada. Start with a regional loan partner; no fixed deadline stated. Repayable financing, not a grant.
- Geography
- Canada
- Amount
- Up to $50,000
Women Entrepreneur Growth Financing (WEOC/BDC)
Announced pilot combining up to $50,000 from WEOC with up to $150,000 from BDC, subject to approval. Planned for late 2026, but applications have not opened and final eligibility/application terms are not yet published. Keep separate from the available National Loan Program.
- Geography
- Canada outside Quebec
- Amount
- Up to $200,000
Women Entrepreneurship Loan Fund
Women Entrepreneurship Loan Fund provides loans through approved delivery organizations to women starting or growing businesses in Canada. Verify current fit and intake with the official source before applying.
- Geography
- Canada
- Amount
- Up to $50,000
Debt is a cash-flow decision
A loan can preserve ownership, but repayment starts whether or not the business has reached the expected milestone. Compare the payment schedule, interest, fees, security and any personal guarantee with a realistic cash-flow forecast.
Match financing to the use of funds
Working capital, equipment, inventory, hiring and a defined project can each have different financing fits. Avoid using short-term debt to fund an uncertain long-term experiment unless the downside is understood.
Ask for the terms in writing
Before accepting financing, confirm the total cost, repayment trigger, collateral, covenants, renewal terms and what happens if a payment is late. Terms shown in a directory are a starting point; confirm them with the provider.
Put the funding plan into practice
How the Canada Small Business Financing Program works
The Canada Small Business Financing Program is delivered through participating financial institutions. You apply to a lender, which assesses the business and makes the lending decision. Government participation does not turn the financing into a grant or remove your obligation to repay it.
Eligible term-loan categories include commercial property, equipment, leasehold improvements, intangible assets and working capital; lines of credit have their own eligible uses. Build the request around the assets or costs you actually need financed. Ask the lender which product it offers and how it applies the current program rules.
- Prepare supplier quotes and a breakdown of eligible uses.
- Bring a cash forecast showing repayments under a slower-sales scenario.
- Confirm fees, security, guarantees and the lender’s approval requirements.
Official program or investor information: Current CSBFP borrower FAQs
Separate equipment finance from operating cash
Equipment finance connects borrowing to an asset the business will use over time. Working-capital borrowing supports the gap between paying expenses and receiving customer money. A term loan, line of credit and invoice-financing arrangement have different repayment patterns and should be compared against those uses.
The existing bank-financing articles explain the categories and documents to prepare. Compare the total borrowing cost, payment schedule, ownership of the asset, security and any personal guarantee. Then check whether the business can service the debt without depending on an unconfirmed grant or investment round.
- Match the financing term to the useful life or cash cycle being funded.
- Include interest, fees and principal in the forecast.
- Identify what cash or security is required before financing is released.
Compare debt with growth and transition capital
Financing an equipment purchase is different from financing an ownership transition or a scaling business. BDC Capital distinguishes venture capital, growth and transition capital, and growth equity. A founder should identify the transaction and business stage before choosing whom to approach.
Use the Ontario government-financing articles to explore additional routes, then compare the structure rather than only the headline amount. Repayable support, equity and lender financing create different effects on cash flow, ownership and reporting.
- State whether the purpose is operations, a project, expansion or an ownership transaction.
- Compare repayment and dilution alongside the amount available.
- Ask what reporting, covenants and milestones the financing requires.
Official program or investor information: BDC Capital financing strategies