BDC Financing for Technology Businesses ### 📋 Eligible Entities - Canadian technology companies (incorporated or operating as sole proprietorships) - Startups and established tech firms with viable business models - Businesses demonstrating technology innovation or digital solutions focus - Companies with 2+ years of operating history (preferred, though some flexibility exists) - Entities with demonstrated capacity to repay and acceptable credit profiles ### 💰 Funding Details - Loan amounts: Typically $25,000 to $5 million+ depending on business size and needs - Interest rates: Competitive, variable rates based on risk assessment and market conditions - Term length: Flexible repayment terms (generally 3–10 years depending on loan structure) - Repayment structure: Fully repayable loans (not a grant); principal + interest payments required - Down payment/matching: Minimal equity injection often required; no mandatory matching contribution - Security: May require personal guarantees or business asset collateral depending on loan size ### 🛠️ Approved Expenses - Working capital: Inventory, accounts receivable, operational cash flow management - Customer acquisition: Sales and marketing initiatives to expand client base - Market expansion: Product localization, market entry strategies, geographic expansion - Technology infrastructure: Software development, IT systems, digital tools, and platforms - Equipment and assets: Technology hardware, machinery, or infrastructure purchases - Working capital cycle: Bridge financing for growth phases ### ⚠️ Conditions & Milestones - Business plan requirement: Detailed plan demonstrating market opportunity and growth strategy required - Financial documentation: Current financial statements, tax returns, and cash flow projections mandatory - Credit assessment: Personal and business credit review conducted; acceptable credit history expected - Use of funds: Money must be deployed for stated business development purposes; misuse voids terms - Reporting obligations: Regular financial reporting and communication with BDC required throughout term - Repayment compliance: Consistent loan payments mandatory; default triggers acceleration clauses and potential legal action - Timeline: Approval typically 4–8 weeks; funds disbursed post-approval and documentation completion