Additional Relief Measure Announced for Canadian Entrepreneurs From BDC
MONTREAL— In addition to its existing products and services, BDC, Canada's bank for entrepreneurs, has announced additional measures to provide relief to business owners impacted by the spread of coronavirus (COVID-19) as part of the BCAP. These actions complement other measures to be announced in the coming days, as well as the measures announced by the Government of Canada earlier today.
Effective immediately, new relief measures for qualified businesses include:
Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
Postponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less
Reduced rates on new eligible loans
Additional details regarding Business Credit Availability Program (BCAP) measures, including industry specific support, to be announced in the coming days.
Businesses seeking support through BCAP should first contact their financial institutions for an assessment of their situation. Financial institutions will refer to EDC and BDC their existing clients whose needs extend beyond what is available through the private sector alone. Existing BDC clients should reach out to their account manager for additional information.
"This is not the first time BDC steps in and acts as a shock-absorber for entrepreneurs. We did it during the financial crisis in 2008-2009 and when the oil prices collapsed in 2016. When available credit goes down, BDC lending goes up", says Michael Denham, BDC President and CEO. "Entrepreneurs are telling us the current situation is putting pressure on their supply chains, their cashflow and their people. We are here for them and their business. Now, more than ever, are we having meaningful conversations with entrepreneurs on business continuity, financial management and operations to help them emerge stronger".
"These strong measures provide immediate relief to Canadian small businesses and entrepreneurs," says the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade. "Nobody should have to lay off their employees due to COVID-19, and the need to help with cash flow and liquidity is something I've heard directly from small business owners and entrepreneurs across Canada. Working together with BDC, we will do whatever it takes to help businesses through this difficult time."
These new measures aim to alleviate the impact of COVID-19 on business activity and complement services offered by other financial institutions, with whom BDC will continue working. For BDC, eligible businesses needed to be financially viable entities prior to the impact of the coronavirus.
As announced by the Government of Canada on March 13, BDC is collaborating with Export Development Canada (EDC) and chartered banks as part of BCAP to provide more than $10 billion in direct lending and other types of additional support at market rates to help businesses through to a more stable time.
Given the high volume of requests we are currently receiving, processing time may take longer than usual. We understand the urgency of the situation and have mobilized all BDC teams to support.
For more information on BCAP:See link below.
For more information on BDC's initiatives, visit link below.. The Bank will be updating the page regularly with tools, financial solutions and additional measures to help entrepreneurs through the situation.