SBA loans in Canada, are there alternative options to BDC?

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December 17, 2020

by a searcher from HEC Montréal in Vancouver, BC, Canada

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Reply by a searcher
from McGill University
For smaller transactions in Canada, beyond the BDC you should try National Bank Financial, BMO, TD, CWB and Roynat. RBC and CIBC don't offer competitive terms on smaller deals. Ultimately you won't get as much leverage as an SBA loan and the banks will probably push for a PG. Get a few term sheets and you can negotiate term (5-7yrs), rates (4-7%) and PG.
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Reply by an intermediary
from McMaster University in Toronto, ON, Canada
Canada does not have an exact equivalent to the US SBA program. However, the ISED Federal Government's CDAP program offers a unique opportunity. It provides up to $100K at 0% interest for business improvements, effectively serving as a substantial working capital source. More info can be found in this post: https://www.searchfunder.com/post/cdaps-100k-0-interest-loan-the-financial-windfall-for-your-business
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