BDC reports on progress on the support it has delivered so far to business owners impacted by COVID-19 Français
MONTREAL, May 15, 2020 /CNW Telbec/ - As Canada moves into its third month of lockdown, BDC is taking stock of the situation to date, and looking forward to how it will further support economic recovery in the months ahead. The Bank was early to market in March, when the novel coronavirus began its spread across the country, offering impacted businesses working capital loans of up to $2 million with flexible repayment terms. Its goal: to bridge these businesses through to a more stable time.
Taking stock of the last two months
"Businesses have been hit hard in the face of this public health crisis. As Canada's bank for entrepreneurs, one of BDC's most important roles is to supply credit in times of difficulty," stated Michael Denham, President and CEO, BDC. Since March, when compared to pre-COVID times, BDC has:
- Deployed more than $1 billion in new financing* to Canadian SMEs of all sizes;
- Authorized 10 times more working capital loans, in dollars; and,
- Processed nearly 40,000 postponements for its clients representing $771 million in postponed payments.
The Bank also initiated the BDC Capital Bridge Financing Program – convertible notes for eligible Canadian start-ups with a current financing round being raised through qualified existing and/or new investors.
More recently, the Bank launched new programs in coordination with its shareholder, the Government of Canada, as part of the Business Credit Availability Program (BCAP). "The scale of the crisis made it important for us to act together with private sector financial institutions and federal government partners to respond to as many entrepreneurs as possible," stated Denham. These programs include:
- the BDC Co-Lending Program – up to $12.5 million per company, for smaller businesses with cash flow needs. These loans can now be accessed through Canada's financial institutions.
- the BDC Mid-Market Financing Program – up to $60 million in junior loans per company, for larger businesses with greater liquidity needs, done jointly with the borrower's primary financial institution. The details of this program are still being finalized and will be made available in the coming weeks.
Looking forward: advice to recover and rebuild
"We know there has never been a more difficult time to run a business. However, we also know the recovery will come," added Denham. "We have more than 60,000 entrepreneurs as clients across Canada and – while the situation is still very difficult – when we talk to them and see how innovative and resilient they have been over the past weeks, I can tell you that it makes us both hopeful and proud at BDC to be by their side and to contribute to the recovery."
That is why BDC has launched three new advisory service solutions, accessible remotely, to help businesses plan for recovery in which its experts provide advice on online sales optimization, operations and cash flow resilience and workplace health risk mitigation.
BDC has made it a point to provide as much information as possible to help entrepreneurs navigate through the various support programs available. The Bank has launched a dedicated hub on its website that includes free tools and advice, such as a COVID-19 business toolkit and a list of available support measures.
More information can be found at bdc.ca/coronavirus.
About BDC
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For 75 years and counting, BDC's purpose has been to support entrepreneurs in all industries and all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs' stories, visit bdc.ca
*This figure does not include reporting from BCAP programs.
SOURCE Business Development Bank of Canada
Media contact: 1-844-625-8321, [email protected]
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