Financing a Business Acquisition in Ontario

Financing a business purchase in Ontario starts with the same federal programs available nationwide — but the regional agencies and local lenders that round out a deal are specific to the province. Here is how they fit together.

In shortOntario buyers combine the federal CSBFP and BDC programs with conventional bank or credit-union loans, support from the province’s federal Regional Development Agency, and often a vendor take-back from the seller.

Federal Financing, Available Across Ontario

The two federal programs work the same everywhere in Canada. The Canada Small Business Financing Program (CSBFP) shares a lender’s risk so banks and credit unions in Ontario will finance the equipment, leaseholds, property and (since 2022) intangibles you are acquiring. The Business Development Bank of Canada (BDC) adds acquisition and business-transfer financing, often covering goodwill and the gap a bank won’t. See our Canadian financing guide for how these stack with a vendor take-back and your equity.

What Ontario Adds

On top of the federal programs, Ontario’s acquisition financing is served by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) for the south, and FedNor for Northern Ontario, which provide loans and contributions to established businesses. Ontario also runs sector and regional development programs, and the Toronto region concentrates the head offices of every major Canadian bank.

For businesses outside the main centres, Community Futures offices provide loans and advice to rural entrepreneurs, and Futurpreneur Canada supports younger buyers nationwide.

Lenders Active in Ontario

Alongside the big banks, credit unions such as Meridian, DUCA and Alterna actively finance small-business acquisitions in Ontario.

Where Deals Get Done in Ontario

Canada’s largest and most diversified economy, from Toronto’s finance and tech to southwestern manufacturing and the northern resource base. Acquisition activity concentrates in Toronto, Ottawa, Hamilton, London. Browse verified businesses for sale in Ontario.

Frequently Asked Questions

What financing is available to buy a business in Ontario?

The federal CSBFP and BDC programs, conventional bank and credit-union term loans, and a vendor take-back from the seller. Ontario is also served by its federal Regional Development Agency and local lenders, which can be combined with the federal programs.

Are there grants to buy a business in Ontario?

Outright grants to buy an existing business are rare. FedDev Ontario and FedNor mainly provide repayable contributions and loans to grow or modernize a business, which can complement CSBFP or BDC financing on an acquisition.

Which lenders finance acquisitions in Ontario?

The national banks, plus the credit unions and provincial lenders active locally. On ExitToBuy, listings are verified before they go live, which helps lenders assess a deal quickly.

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