The Mid-market Program was announced last week as part of BCAP. Through this program, BDC will make available patient capital, interest-only loans, ranging in size between $12.5M and $60M each. Proceeds of these 48-month term loans will fund operational liquidity requirements to bridge companies through the current economic environment and ensure a degree of continuity of operations during this period of uncertainty. At that point, they will have more financing options to consider.
For VC-backed start-ups,
BDC Capital announced a targeted measure in the form of a Bridge Financing Program to match a current financing round being raised through qualified existing and/or new investors made into eligible Canadian VC-backed companies. This was developed in close collaboration with the CVCA to ensure it met market expectations and need. The response so far has been very positive.
At the same time, BDC continues to offer working capital loans. Through our direct channels, over the last 60 days, we have increased our working capital loans to nearly 5 times the number and 10 times the amount we would authorize in a typical month. We have moved staff and streamlined processes and will continue to do so to respond to this volume.
New advice available
will take more than money for businesses to withstand conditions and position for recovery. That is why BDC has launched three new advisory services solutions, available remotely, to help businesses plan for recovery. Our experts will provide advice on online sales optimization, operations and cash flow resilience and workplace health risk mitigation.
I want to assure you that we are all mobilized and working hard at BDC to respond to entrepreneurs as quickly as possible. We will continue to listen to our clients to evolve our offering and communicate with our partners as we do.
COVID-19 Response Measures Resource Guide is available at bdc.ca/coronavirus.
Stay safe and keep well,
Regional Manager, Partnerships