New BDC Co-Lending Program finalized, will be gradually rolled out by financial institutions as of today
MONTREAL, April 24, 2020—Today, BDC, Canada’s bank for entrepreneurs, announced that it has finalized the details of its new $20-billion Co-Lending Program, as part of the BCAP previously announced by Prime Minister Justin Trudeau on March 27, 2020. Financial institutions will progressively roll out the program to businesses today and in the coming days.
To access these loans, business owners must contact their primary financial institution which will assess their situation, structure the financing and disburse the capital as appropriate.
The commercial support, developed by BDC in partnership with financial institutions across the country, is intended to help Canadian businesses impacted by COVID-19 fund their operational cash flow needs. Eligible businesses may obtain incremental credit amounts up to $6.25 million, 80% of which would be provided by BDC, with the remaining 20% from their financial institution.
“BDC looks forward to expanding its commercial support to more Canadian entrepreneurs by leveraging the strong network of financial institutions across the country” said Michael Denham, President and CEO of BDC. “Working hand in hand with key financial partners is a great example of our complementary roles and joint efforts to better help businesses weather the impact of this unprecedented pandemic.”
The Co-Lending Program is available to Canadian businesses impacted directly or indirectly by COVID-19 until or before September 30, 2020. To qualify, companies must have been financially viable and in good standing prior to the impact of the pandemic.
“Our government, BDC and Canada’s financial institutions are working together to provide critical support to Canadian businesses so that they can cover their operating costs, weather this incredible challenge, and rebuild once we’re on the other side of this,” said the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade. “Through this co-lending program, BDC will help business owners quickly access loans through their financial institutions, giving them the urgent help they need.”
This measure comes in addition to other initiatives available to businesses, including the Business Credit Availability Program. More support measures have also been announced by BDC, including working capital loans and flexible repayment terms such as principal postponements to help bridge entrepreneurs to a more stable time.
BDC is the bank for Canadian entrepreneurs. Its purpose is to support small and mid-sized businesses in all industries and at all stages of growth. Whether business owners want to take on new markets, make their operations more efficient, acquire another business or everything in between, BDC provides access to financing, as well as advisory services to meet their needs. BDC’s investment arm, BDC Capital, offers a wide range of risk capital solutions. BDC supports underserved entrepreneurs and emergent industries to generate greater social and economic impact. BDC is also certified B Corp and actively contributes to the growth of a worldwide movement of entrepreneurs who create inclusive and sustainable prosperity. For more information on BDC’s solutions, and to consult more than 1,000 free tools and articles visit bdc.ca.