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RESOURCES

Important resources for your reference

How it works: Intended to provide additional liquidity support for Canadian businesses. The Co-Lending Program will bring the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.

Department: Business Development Bank of Canada

Applicability: Eligible businesses may obtain incremental credit amounts up to $6.25 million BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers.

Funding: The potential for lending for this program will be $20 billion.

How it works: This program will provide interest-free loans of up to $40 000 to small businesses and not-for-profits, to cover operating costs for a period where revenues have been temporarily reduced, due to economic impacts of COVID-19.  Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).

Department: Implemented by eligible financial institutions in cooperation with EDC.

Applicability: Small businesses and not-for-profits should contact their financial institution to apply for these loans. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.    

Funding: $25 billion available for interest-free loans of up to $40 000.

How it works: A new program through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to help Canadian businesses obtain financing during the current period of significant uncertainty.

Intended to fill gaps in market access and leverage additional lending by private sector institutions. Businesses interested in accessing the BCAP should contact their financial institution, which will contact BDC and/or EDC where appropriate.

EDC: Effective March 24, 2020, EDC is stepping up to support all exporting companies by offering their bank a guarantee on loans of up to $5M so that companies can access more cash immediately.  For more details, contact your financial institution.

BDC: Effective March 18, 2020, new relief measures for qualified businesses include:

●      Working capital loans of up to $2 million with flexible repayment

●      Flexible repayment terms, such as postponement of principal payments for up to 6 months, 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.


Department: Export Development Canada (EDC) and the Business Development Bank of Canada (BDC)

Applicability: The BCAP will support access to financing for Canadian businesses in all sectors and regions. All credit-worthy businesses with viable business models whose activities fall within the mandate of either BDC and/or EDC are eligible to benefit from BCAP.  

The objective of the Business Credit Availability Program is to improve access to financing for credit-worthy Canadian businesses with viable business models whose access to financing would otherwise be restricted.

‍Funding Available: EDC and BDC will provide more than $10 billion in direct lending and other types of financial support at market rates to businesses with viable business models whose access to financing would otherwise be restricted.

Effective Date & Length: BCAP is currently available.

Resources: List
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