Laws and reports

BDC provides financing, capital and advisory services to help create and grow Canadian small and medium‑sized businesses. BDC is subject to various laws.

Business Development Bank of Canada Act

BDC is governed by the Business Development Bank of Canada Act which came into effect in 1995, superseding the Federal Business Development Bank Act. It stipulates that the Act be reviewed five years after coming into force, and every ten years afterwards. The last legislative review was completed in December 2014 with a few amendments made to the Act.

Legislative reviews are part of the legal acts governing many commercial crown corporations, such as BDC, and are designed to ensure that these corporations meet the evolving needs of their clients. The BDC Act stipulates that a legislative review must occur every ten years. 

Legislative Review 2010–2022

Under the leadership of BDC’s Designated Minister, the review evaluates the provisions and operations of the BDC Act and examines how BDC’s mandate has changed and could evolve to support the needs of SMEs across Canada over the coming decade. 

The Minister of Small Business tabled her report on the Legislative Review of BDC on November 29, 2023. The report covers the period from 2010 to 2022. It concludes that, over the period, BDC performed well, playing an important role in supporting the needs of small and medium-sized businesses (SMEs) during good times and bad.

BDC’s Action Plan

BDC welcomed the positive findings of the Legislative Review’s final report, highlighting BDC’s essential role though a decade of volatility and shocks. The report identified four recommendations to ensure continued relevance and effectiveness of BDC’s offering. 

In response to these recommendations, BDC developed a Legislative Review Action Plan to outline in detail how the review’s recommendations are taking shape in its work:

1. Strengthen accessibility and visibility, to increase support for equity-deserving groups and underserved market segments such as newcomers, Indigenous entrepreneurs and rural communities. Initiatives include:
   • Creation of a new, dedicated team for underserved communities to collaborate effectively with local organizations
   • Improvement of the online lending process for greater speed and ease
   • Continued implementation of our Supplier Diversity Program
2. Improve reach across Canada, to better balance BDC’s regional presence and engagement, particularly in the Prairie and Atlantic regions, through expanded partnerships. Initiatives include:
   • Increased automation of loans up to $350,000 for greater accessibility in regions where BDC does not have physical branches
   • Increased recruitment efforts to expand our workforce in underserved regional markets
   • Co-branded pilot campaign with Canada Post to reach entrepreneurs in rural markets where BDC’s presence is less concentrated
3. Reinforce collaboration and complementarity, to enhance cooperation with partners across the SME ecosystem while complementing private sector financial institutions’ offerings. Address market gaps for underserved segments and bolster alignment across government initiatives. Initiatives include:
   • Loan guarantee pilot with financial institutions to test the guarantee’s complementarity with similar offerings to reach more underserved entrepreneurs
   • New partnership to expand reach to Black entrepreneurs and complement the current FACE partnership
   • Continued relationship development with international banks, NGOs and SME experts to stay abreast of trends in SME support
4. Increase data cooperation and refine risk appetite, for greater transparency and to enable a stronger understanding of BDC’s activities. Initiatives include:
   • Actively engaging with MPs to effectively communicate BDC’s role and impact
   • Providing and publishing annual reports as required by the Access to Information Privacy Act
   • Conducting regular outreach to financial institutions and players to ensure our activities remain complementary to the private sector

For more information on the BDC Legislative Review, click here.

Financial Administration Act

Under Part X of the Financial Administration Act, BDC is required to:

• Maintain financial and management control and information systems and management practices that provide reasonable assurance that its assets are safeguarded and controlled.
• Ensure that its financial, human, and physical resources are managed economically and efficiently.
• Ensure that its operations are carried out effectively.

BDC is also required to have a Special examination of these systems and practices carried out at least once every ten years. View the Special examination report—2018 (PDF).

Fighting Against Forced Labour and Child Labour in Supply Chains Act

Under the Fighting Against Forced Labour and Child Labour in Supply Chain Act , BDC is required to report annually on measures taken to prevent, and reduce the risk of forced labour or child labour in its supply chains. For more information, view the Annual Report on Fighting Against Forced Labour and Child Labour  for Fiscal 2024.