In 2012, $1.13 trillion Canadian goods and services were traded. It is clear that exporting is a key component to our economic foundation. Whether companies are exporting or expanding into new markets domestically, the Business Development Bank of Canada (BDC) can provide funding to help businesses with their market expansion activities. The program is called the Market Xpansion Loan and is available to incorporated businesses across Canada who are expanding within the domestic marketplace or exploring new and larger foreign markets, as well as tackling new growth projects.
BDC Market Expansion Financing Details
The Market Expansion Loan will allow businesses to receive up to $250,000 from BDC as a long-term financing option without penalty at any time during the term of the loan. The maximum amortization period of 8 years including the possibility to defer principal payments for the first 12 months of the loan. BDC can also provide re-advancement of any repaid portion of the loan starting at a minimum of $10,000. Eligible activities include:
- Participate in prospecting initiatives like trade shows and conduct business development overseas.
- Develop local or international contacts and distribution networks.
- Develop export plans.
- Develop e-commerce.
- Produce and implement a marketing plan.
- Conduct product development and R&D.
- Advance SR&ED (Scientiﬁc Research & Experimental Development) refunds to replenish working capital, or cover SR&ED consulting costs.
- Purchase additional inventory to expand and export to new markets.
Prepayment privileges up to 100% of the balance without penalty at any time during the term of the loan and payment schedules can occur on either a seasonal or semi-annual basis. To get started, please call BDC directly at 1 877 BDC-BANX (1 877 232-2269).
Grants for Export Expansion Also Available
In addition to this BDC program, non-repayable funding is offered through other organizations and associations for export expansion initiatives. Two examples in particular are a grant that covers 50% of eligible expenses up to $30K for trade show and product certification costs through Export Market Access, as well as CME SMART Prosperity Now, which provides up to $75K in grant funding or 33% of expenses related to capital equipment adoption to support export activities. Please Register for a Free Funding Workshop/Webinar or Contact Us for more information on funding options for your business’ market expansion activities.