Business Credit Availability Program (BCAP)

A business for sale may carry a loan that was issued under this pandemic-era program, and a buyer can meet it in the seller’s debt schedule. The Department of Finance page describes the program as supporting access to financing in all sectors and regions, and says BDC and EDC, both financial Crown corporations, worked with private sector lenders.

What the Department of Finance lists

• The Canada Emergency Business Account, for operating costs such as payroll, rent and utilities.
• An EDC loan guarantee for small and medium-sized enterprises, under which financial institutions issue operating credit and cash flow term loans to existing clients, with part of the loan guaranteed by EDC.
• A BDC co-lending program providing term loans for operational and liquidity needs.

What to ask

The page cited describes the program as it was introduced, so it does not show whether a given loan is still outstanding. Ask the seller for the loan agreement and any guarantee, and ask the lender what a sale requires. See whether BDC can finance buying a business and the entry on the CEBA loan.