Accessing Federal COVID-19 Funds Through BDC and EDC

Posted
March 18, 2018
in

Details on how businesses may access a portion of the $10 billion of Federal Funds allocated to the Business Development Bank of Canada and Export Development Bank of Canada are beginning to be released. This page will be updated as more information is available. If you are an existing BDC client, please reach out to your BDC account manager directly, if you do not have an existing relationship with BDC, please reach out to your Bateman MacKay Partner for a referral.

March 19, 2020

BDC released this communication on March 18, explaining some additional relief measures for entrepreneurs. It includes the following:

For Existing BDC Clients

  1. If an existing loan is under $1 million, businesses can postpone payments for up to six months free of charge.

For Non-BDC Clients

  1. Businesses can apply online for a loan of up to $100,000 with relaxed qualifications.
  2. BDC is offering working capital loans of up to $2 million, with flexible terms and payment postponements for up to six months for qualifying businesses.

Our contacts at BDC have offered more information including :

  • The loan will be repaid over 36 months with a 60% balloon payment on the final payment.
  • Standard BDC security applies with a General Security agreement in second position to the businesses chartered bank.

To apply for this financing you will need:

  • Last three years of accountant prepared financial statements for the operating company and any closely related companies
  • Organizational Chart
  • Projections or a Cash-flow forecast
  • If year ends are more then three months old, the most recent interim financial statements with comparisons to the previous year's interim period

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