Market showing signs of increased access to business credit
MONTREAL, Feb. 17 /CNW Telbec/ - The Business Development Bank of Canada (BDC) continues to provide vital support to entrepreneurs. For the first nine months of fiscal 2009-2010, the amount of loans accepted by BDC clients rose to $3.4 billion, an increase of 51% over the same period last year. For the third quarter ended December 31 2009, the amount of loans accepted totalled $1.1 billion, 45% higher than last year, but a decrease from second quarter results.
"The demand for BDC financing remains at record levels, but we see in the decline from last quarter a sign of increased access to business credit in the market," said Jean-René Halde, BDC's president and chief executive officer. "Given entrepreneurs' critical role in job and wealth creation, we believe this is encouraging news for Canada's economy."
BDC's results are largely due to transactions under the federal government's Business Credit Availability Program (BCAP) and the resulting increased cooperation between BDC and private sector financial institutions. As of December 31 2009, nearly eleven months after the program was launched, loan authorizations by BDC under this program topped $2.3 billion.
Conference Board sees BDC's role as vital
In a recent report entitled Lessons from the Recession and Financial Crisis: Lesson 2-Public Sector Financial Institutions Prove Their Worth, the Conference Board highlighted the crucial role played by public sector financial institutions like BDC as a backstop for the financial system, and the exceptional credit support they provided in a time of crisis.
"At a time when the private sector Canadian credit system was being buffeted by the global economic crisis, BDC was able to cushion the blow by providing entrepreneurs with the financial support they needed to continue operating and grow their businesses," noted Jean-René Halde. "We will now focus on helping businesses that want to take advantage of the economic recovery and are looking to expand their operations in Canada and around the world."
BDC is Canada's business development bank. From more than 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. For more information, visit www.bdc.ca
SOURCE Business Development Bank of Canada
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