Financing a Business Acquisition in Canada (CSBFP & BDC)

Canada Small Business Financing Program (CSBFP)

A government-backed program delivered through major banks (RBC, BMO, Scotiabank, TD, CIBC). It shares risk with the lender, helping fund equipment, property, and business purchases up to $1.15M.

BDC acquisition financing

The Business Development Bank of Canada offers dedicated acquisition and transition loans with flexible repayment and no penalty for early repayment — useful for cash-flowing businesses.

What lenders look for

A debt-service coverage ratio of 1.25× or higher, a reasonable down payment (often 20-30%), and a credible transition plan. Model yours in the Finance Center calculator.