{"id":8721,"date":"2023-10-03T03:52:30","date_gmt":"2023-10-03T03:52:30","guid":{"rendered":"https:\/\/www.ownr.co\/blog\/?p=8721"},"modified":"2026-04-06T15:09:28","modified_gmt":"2026-04-06T15:09:28","slug":"funding-financing-small-business-loans-bc","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/funding-financing-small-business-loans-bc\/","title":{"rendered":"Funding &#038; Financing Small Business Loans in BC"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Whether you&#8217;re launching a new business or want to scale an existing enterprise, having access to capital when you need it can greatly impact your ability to turn your business plans into reality.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like many business owners, you may not be able to personally contribute all of the funds required to start or scale your business. Small business funding and financing can help you bridge that gap. If you&#8217;re a B.C. entrepreneur, this article will answer questions you may have before you start applying for small business loans.<\/span><\/p>\n<h2><b>Loan eligibility<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Small business loans are typically provided by financial institutions or by local, provincial, or federal governments. Each loan program has its own eligibility requirements, but government loans typically have stricter requirements regarding eligible businesses. Meanwhile, loans from financial institutions are available to most types of businesses that meet the baseline requirements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless of which type of loan you&#8217;re planning to apply for, you&#8217;ll find a few key eligibility requirements. These are typically:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A detailed<\/span><a href="\&quot;https:\/\/www.ownr.co\/blog\/business-plan-guide\/\&quot;"> <span style=\"font-weight: 400;\">business plan<\/span><\/a><span style=\"font-weight: 400;\"> demonstrating you have carefully worked through the costs associated with starting or growing your business, and that you have a clear plan for generating revenue and repaying the loan.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A credit history report demonstrating you&#8217;ve paid off past loans or credit card balances on time. An<\/span><a href="\&quot;https:\/\/www.ownr.co\/blog\/build-business-credit\/\&quot;"> <span style=\"font-weight: 400;\">excellent credit score<\/span><\/a><span style=\"font-weight: 400;\"> increases your chances of getting a loan at a favourable rate.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demonstrated commitment to your business, usually shown through your own personal financial contributions to the business. This shows the lender that you have skin in the game.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collateral against the loan, such as personal assets.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In addition to these standard requirements, loans funded by government programs may be designated for certain industries, demographics, or have other eligibility requirements based on the goals of the program.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Funds and financing options<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are many funding and financing options available to B.C. small business owners, and we\u2019ll give you some tips for where to start your search for funds that your business is eligible for. To get you started, here are a few to look into:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">BDC Small Business Loans<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Business Development Bank of Canada (BDC) is a financial institution devoted to Canadian entrepreneurs offering loans to businesses at any stage of their development. <\/span><a href="\&quot;https:\/\/www.bdc.ca\/en\/financing\/small-business-loan\&quot;"><span style=\"font-weight: 400;\">BDC Small Business Loans<\/span><\/a><span style=\"font-weight: 400;\"> can be easily accessed through an online application and offer up to $100,000 to eligible small businesses.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">B.C. COVID-19 Economic Recovery Funding<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Given the challenges faced by small businesses as a result of the COVID-19 pandemic, the government of B.C. has created the <\/span><a href="\&quot;https:\/\/www2.gov.bc.ca\/gov\/content\/covid-19\/economic-recovery\/closure-relief-grant\&quot;"><span style=\"font-weight: 400;\">COVID-19 Closure Relief Grant<\/span><\/a><span style=\"font-weight: 400;\">. You may be eligible for this if your small business was ordered to close due to public health orders. If you are not eligible, there is a list of additional <\/span><a href="\&quot;https:\/\/www2.gov.bc.ca\/gov\/content\/covid-19\/economic-recovery\/business-supports\&quot;"><span style=\"font-weight: 400;\">COVID-19 relief loans and grants<\/span><\/a><span style=\"font-weight: 400;\"> offered by both the provincial and federal governments that you can look through.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">UBC Small Business Accelerator Program Funding Guide<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You don\u2019t have to be a UBC student or alumnus to take advantage of the great resources they\u2019ve put together as part of their free online <\/span><a href="\&quot;https:\/\/sba.ubc.ca\/\&quot;"><span style=\"font-weight: 400;\">Small Business Accelerator<\/span><\/a><span style=\"font-weight: 400;\">, including a <\/span><a href="\&quot;https:\/\/sba.ubc.ca\/business-basics\/funding-financing\&quot;"><span style=\"font-weight: 400;\">funding and financing<\/span><\/a><span style=\"font-weight: 400;\"> guide. You\u2019ll find a list of directories you can use to search for available loans and grants, as well as a list of financing options for specific groups such as First Nations, women, and youth applicants.<\/span><\/p>\n<h2><b>How to apply for a loan in BC<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re ready to apply for a loan to take your British Columbia-based business to the next level, your first step should be to identify the loans you\u2019re eligible for. Loan directories are tools that enable you to compile a list of available loans in one place, saving you a lot of research time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two excellent directories are<\/span><a href="\&quot;https:\/\/www.ownr.co\/blog\/smarter-loans\/\&quot;"> <span style=\"font-weight: 400;\">Smarter Loans<\/span><\/a><span style=\"font-weight: 400;\"> for loans from financial institutions and the Government of Canada&#8217;s<\/span><a href="\&quot;https:\/\/innovation.ised-isde.canada.ca\/s\/?language=en_CA&amp;lang=eng\&quot;"> <span style=\"font-weight: 400;\">Business Benefits Finder<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0 Here, you&#8217;ll be able to limit your search to loans that are available to B.C. businesses and the type of loans your business qualifies for.<\/span> <span style=\"font-weight: 400;\">WorkBC<\/span><span style=\"font-weight: 400;\"> also provides a list of loans, grants, and other types of financing available to B.C. businesses, along with a list of other incentives and tax credits you may also qualify for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you select the loans you want to apply for, confirm that you meet the eligibility requirements and identify the documentation needed to apply, as well as\u00a0 any application deadlines.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are approved for a loan, it&#8217;s important to understand the payment schedule so you can make sure it&#8217;s realistic for you based on your business plan. Find out if there are flexible payment plans, what the penalties are for loan payment deferrals, and how frequently principal payments and any interest payments need to be made.\u00a0\u00a0<\/span><\/p>\n<h2><b>What you can use a business loan for<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are lots of<\/span><a href="\&quot;https:\/\/www.ownr.co\/blog\/tracking-and-claiming-tax-deductible-business-expenses-in-canada\/\&quot;"> <span style=\"font-weight: 400;\">business-related expenses<\/span><\/a><span style=\"font-weight: 400;\"> you might want to use a loan to help cover, including equipment, staff wages, rent or mortgage payments on your place of business, leasehold improvements, office supplies, advertising costs,<\/span><a href="\&quot;https:\/\/www.ownr.co\/blog\/inventory-management\/\&quot;"> <span style=\"font-weight: 400;\">inventory<\/span><\/a><span style=\"font-weight: 400;\">, research and development, and software, just to name a few.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, not every loan is eligible to be used however you see fit. It&#8217;s possible the loan you are applying for has limitations on how the funds can be used. For example, the<\/span><a href="\&quot;https:\/\/www.ic.gc.ca\/eic\/site\/csbfp-pfpec.nsf\/eng\/h_la02855.html\&quot;"> <span style=\"font-weight: 400;\">Canada Small Business Financing Program<\/span><\/a><span style=\"font-weight: 400;\">, which is available to B.C. business owners as a loan through financial institutions, cannot be used to finance inventory, research and development, or franchise fees, among other excluded categories.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can use your business plan to identify the main expenses in your business you require financing for, and crosscheck if the loans you\u2019re applying for can be used for those expenses. For general expenses, businesses may opt to apply for a flexible loan, such as a line of credit (also known as operating credit), which typically has more favourable rates than a credit card and can be used for regular business operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you have a great idea but lack the funds to get it off the ground, or your company is ready to grow, but you need to invest money into expanding your capacity, a loan can help you reach your business goals faster. As a B.C. business owner, you have access to a range of loans from both financial institutions and the government. With a strong business plan, you&#8217;re already on your way to obtaining a loan that can help you take your business to the next level.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starting and growing a company can be expensive. If you have a strong plan, but need financing for your B.C. small business, learn more about getting loans here.<\/p>\n","protected":false},"author":5,"featured_media":8722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[975],"tags":[133,149,162],"class_list":["post-8721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-getting-funded","tag-british-columbia","tag-business-financing","tag-business-loan"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Funding &amp; Financing Small Business Loans in BC | Ownr Blog<\/title>\n<meta name=\"description\" content=\"Starting and growing a company can be expensive. 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