BDC ANNOUNCES ADDITIONAL MEASURES TO PROVIDE RELIEF FOR CANADIAN ENTREPRENEURS IMPACTED BY THE
As announced by the minister of finance, BDC puts in place additional measures to provide relief for Canadian entrepreneurs impacted by the coronavirus COVID-19.
New relief measures for qualified business effective March 18, 2020
- Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
- Postponement of payments for up to 6 months, free of charge, for existing BDC clients;
- Reduced rates on new eligible loans;
- Additional details regarding Business Credit Availability Program (BCAP) measures, including industry specific support, to be announced in the coming days.
These measures aim to alleviate the impact of COVID-19 on business activity and complement services offered by other financial institutions which will continue working in collaboration with the BDC. Eligible businesses must demonstrate financial viability prior to the impact of the coronavirus.
EDC PROVIDES RELIEF FOR CANADIAN EXPORTERS
As part of the Business Credit Availability Program (BCAP), EDC puts in place additional measures to provide relief for Canadian exporters impacted by COVID-19.
New relief measures effective March 24, 2020
- EDC is stepping up to support all exporting companies by offering their bank a guarantee on loans of up to $5M;
- For credit insurance customers, EDC immediately undertakes to:
o Cover losses for goods shipped even if the buyer has not accepted the goods, subject to terms; and
o Waive the 60-day waiting period for claims.
- Additional details regarding Business Credit Availability Program (BCAP) measures deployed by EDC will be announced shortly.
INVESTISSEMENT QUÉBEC – CONCERTED TEMPORARY ACTION PROGRAM FOR BUSINESSES
On March 19, 2020, the Quebec government announced new measures to support businesses that were affected by COVID-19 in the form of emergency funding administered by Investissements Québec.
This new emergency funding measure provides ad hoc and exceptional support for businesses affected by COVID-19.
This financial assistance is available to businesses operating in Québec, including cooperatives and other social economy enterprises with commercial activities that find themselves in a precarious situation and temporary difficulty as a result of COVID-10 and which financial structure offers realistic prospects for profitability. All industries are eligible with few exceptions.
Businesses must demonstrate that their cashflows issues are temporary and result from:
- A problem involving the supply of raw materials or products (goods and services);
- An inability, or a substantially decreased ability, to deliver goods, products or services.
The financial assistance is offered in the form of loans or loan guarantees designed to shore up the business’ working capital. The minimal funding amount must be at least $50,000 and excludes any refinancing.