BDC deploys new program intended to support medium-sized businesses with cashflow needs as a result of COVID-19

MONTREAL, June 18, 2020—BDC, Canada’s bank for entrepreneurs, announced today the deployment of the Mid-Market Financing Program, part of the Government of Canada’s Business Credit Availability Program (BCAP). The financing builds on the federal government’s previous economic support programs and is intended to fund operational cashflow needs to ensure business continuity during this period of uncertainly. The program will be delivered working closely with businesses’ primary lenders, and will include support for several sectors, including oil and gas, as previously announced.

 

Program details are as follows:

 

 

“Since announcing this program, we have received positive feedback from medium-sized companies, demonstrating the demand for this type of credit solution to manage cashflow and activities. Many entrepreneurs are looking forward to the recovery and we hope that this initiative will provide them with the liquidity they need to adjust their operations and plan to emerge from this crisis.” said Michael Denham, President and CEO of BDC.

 

“From the beginning of this pandemic, our government has been clear that we will do whatever it takes to support businesses of all sizes, in all sectors, across every region of our country. We have listened to business owners—introducing programs that help them retain their employees, cover operational costs and prepare them to emerge from this crisis ready to restart safely and rebuild quickly. Today’s announcement will further help businesses make it through this tough period. We’ll continue to be there for businesses and all Canadians,” said the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade.

 

The Bank anticipates that qualifying companies will have annual revenues in excess of approximately $100 million and up to $500 million. These commercial loans will take the form of a junior loan done jointly with the business’ primary lender or lending syndicate. To be eligible, businesses must have:

 

 

Interested medium-sized business owners are encouraged to speak with their primary lender who can assess if the program is appropriate for them. The primary lender will then communicate with BDC regarding next steps, including due diligence.

 

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.