Program to provide liquidity for medium-sized businesses whose credit needs exceed what is already available through BCAP
MONTREAL, May 11, 2020 /CNW/ - With the goal of helping Canadian medium-sized businesses face the financial challenges brought on by the COVID-19 pandemic, BDC, Canada's bank for entrepreneurs, announced today the creation of the Mid-Market Financing Program.
The objective of the new program will be to bring liquidity to medium-sized companies particularly impacted by COVID-19 and whose credit needs exceed what is already available through the federal government's Business Credit Availability Program (BCAP), as well as other measures previously announced by BDC.
"The current situation is putting pressure on all business owners, big and small. With this additional support, medium-sized companies will be able to maintain their staff, preserve supply chains and manage cashflow. We understand it will take time for both the economy and Canada's businesses to stabilize and this new financing program is designed to serve as a bridge through this crisis," said Michael Denham, President and CEO of BDC.
As part of this new initiative, BDC will make additional credit available to complement businesses' existing debt facilities, working closely with their primary lenders. The Bank anticipates that qualifying companies will have annual revenues in excess of approximately $100 million. These commercial loans, which will take the form of a junior loan done jointly with the business' primary lender, will range in size between $12.5 million and $60 million each. To be eligible, companies must have been financially stable and viable prior to the current economic turmoil.
"Since the beginning of this crisis, our government has promised to listen to Canadian businesses – of every size, in every sector, in all regions of the country – and has committed to doing whatever it takes to support them through this. We've created programs and measures to ensure hard-working Canadian business owners and entrepreneurs have the support they need to weather this storm and are able to rebuild when we are on the other side," said the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade. "BDC's Mid-Market Financing Program will build on our existing lending supports and will help medium-sized businesses with much-needed liquidity."
As with other BCAP offers, BDC will work with Export Development Canada (EDC) as well as private sector lenders to support access to additional capital for Canadian businesses in all sectors and regions. Program details are still being finalized. Additional information will be made available by BDC in the next few weeks. Interested business owners are encouraged to visit bdc.ca/coronavirus to sign up for an update once details become available.
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, both online and in-person, 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.
SOURCE Business Development Bank of Canada
For further information: BDC, 1-844-625-8321, [email protected]