Does a BDC loan require different security than a regular bank loan for a business purchase?

Not fundamentally, though the specific mix can differ from lender to lender. The Business Development Bank of Canada is a federal Crown corporation that lends on commercial terms it sets itself, and its security requirements for a business acquisition loan are generally similar in kind to what a traditional chartered bank would ask for, including personal guarantees, a general security agreement registered under Ontario's Personal Property Security Act, and sometimes security against real property if it is part of the deal.

Where BDC can differ is in its overall risk appetite and flexibility for certain kinds of deals, since as a development-focused lender it sometimes takes positions or structures financing for transactions that a conventional bank might be more cautious about, but this varies by deal and by BDC's own current lending policies rather than following any fixed rule about how its security differs from a bank's. There is no single answer that applies across every BDC loan; the specific security package is negotiated for the particular transaction just as it would be with any other commercial lender.