This communication is intended to provide you with information about the programs that are currently available for qualifying businesses, to ensure they have access to credit as needed during the COVID-19 pandemic.
BDC and EDC Financing for Small and Medium-Sized Enterprises
In addition to the Canada Emergency Business Account, the Business Credit Availability Program (BCAP) also includes other programs to provide credit to certain business through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC). The purpose of these loans is to ensure businesses, that were otherwise financially viable prior to the COVID-19 crisis, are able to access credit during this time.
Working capital loans, loan guarantees, loan payment deferrals and fee deferrals are being made available to businesses through BDC and EDC as part of the BCAP. The credit available will vary depending on the size and nature of the business. Also, BDC clients with existing loan commitments could be eligible for postponement of principal payments. Existing BDC and EDC clients should contact their BDC or EDC account manager and new clients should approach their financial institution to determine if they are eligible for these programs.
Trenval Recovery Loans
Trenval Business Development Corporation, a local non-profit organization, has also introduced a $400,000 loan fund program to support local businesses that are not eligible for other support programs available to Canadian businesses due to gaps in the rules. These loans provide up to $20,000 to eligible businesses and will be available on a first-come, first-served basis until the loan fund is exhausted. For more information including loan terms, eligibility requirements and application details, please click here.
As always, further updates will be provided once available. We are happy to discuss any questions you may have about these matters. To review any of our previous updates on COVID-19 please see our website.
This summary deals with proposed matters that are complex and may not apply to particular facts and circumstances. As well, the material and the references contained therein reflect laws and practices which are subject to change. For these reasons, this material should not be relied upon as a substitute for specialized professional advice in connection with any particular matter.
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