New BDC Co-Lending Program finalized, will be gradually rolled out by financial institutions as of today

Part of Business Credit Availability Program (BCAP), new loans to help fund SME operational cash flow needs amid COVID-19

MONTREAL, April 24, 2020 /CNW Telbec/ - Today, BDC, Canada's bank for entrepreneurs, announced that it has finalized the details of its new $20-billion Co-Lending Program, as part of the BCAP previously announced by Prime Minister Justin Trudeau on March 27, 2020. Financial institutions will progressively roll out the program to businesses today and in the coming days. 

To access these loans, business owners must contact their primary financial institution which will assess their situation, structure the financing and disburse the capital as appropriate.

The commercial support, developed by BDC in partnership with financial institutions across the country, is intended to help Canadian businesses impacted by COVID-19 fund their operational cash flow needs. Eligible businesses may obtain incremental credit amounts up to $6.25 million, 80% of which would be provided by BDC, with the remaining 20% from their financial institution.

"BDC looks forward to expanding its commercial support to more Canadian entrepreneurs by leveraging the strong network of financial institutions across the country" said Michael Denham, President and CEO of BDC. "Working hand in hand with key financial partners is a great example of our complementary roles and joint efforts to better help businesses weather the impact of this unprecedented pandemic."

The Co-Lending Program is available to Canadian businesses impacted directly or indirectly by COVID-19 until or before September 30, 2020. To qualify, companies must have been financially viable and in good standing prior to the impact of the pandemic.

This measure comes in addition to other initiatives available to businesses, including the Business Credit Availability Program. More support measures have also been announced by BDC, including working capital loans and flexible repayment terms such as principal postponements to help bridge entrepreneurs to a more stable time.

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.

SOURCE Business Development Bank of Canada