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Hello Alex,

It has now been nine weeks since the start of what has been a huge disruption and hardship for entrepreneurs. Like you, BDC continues to hear from entrepreneurs about how difficult this has been and will continue to be so for the months ahead. As we refine and introduce new initiatives to support businesses, communication with our partners is key to ensuring the new measures get traction quickly. As a result, I want you to be aware of the steps that we have taken and the progress that we are making.

New financing available

We reached a milestone last week in the Business Credit Availability Program (BCAP) as we finalised the range of solutions now available.

The SME Co-lending program was announced in April and is operational through dozens of financial institutions:



Entrepreneurs can now access up to $12.5 million to get a boost in liquidity to cover critical business expenses―80% backed by BDC, and 20% from the entrepreneur’s financial institution.


EDC Loan Guarantees for Small and Medium-Sized Enterprises are also available for new operating credit and cashflow loans up to $6.25 million. You can find additional details on EDC website.

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

It 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.

Our COVID-19 Response Measures Resource Guide is available at bdc.ca/coronavirus.

Stay safe and keep well,

Wendy Trusler
Regional Manager, Partnerships
T  604-666-1070

bdc.ca
info@bdc.ca

Business Development Bank of Canada
5 Place Ville Marie, Ground floor
Montreal, Quebec H3B 5E7
Toll-free number: 1-877-232-2269

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