3. BDC or SBA loans
In Canada, the BDC offers loans up to $100,000 in as little as 48 hours. Multiple types of long-term funding are available, including real estate financing, equipment financing, working capital financing, and more. Your business must be based in Canada and have been in operation for at least 24 months to be eligible.
In the United States, SBA loans are provided by intermediaries like banks, credit unions, or Commercial Development Companies, and are guaranteed by SBA up to 85%. SBA loans often take the form of term loans with longer term lengths and the lowest rates available. Multiple types of SBA loans are available, including the popular 7(a) Guaranteed Loan Program, 504 Local Development Company Loans, Microloans, and Express Loans. The application process for SBA funding is the most arduous, often requiring years of business and personal financial information. It can take weeks or months for a decision to be made and there’s no guarantee of approval.
SBA or BDC loans are commonly used for:
- Purchasing or upgrading real estate
- Purchasing machinery or equipment, inventory, or supplies
- Responding to natural disasters such as hurricanes or pandemics