Many businesses are facing a drastic reduction in revenues as their businesses are forced to close, or scale back dramatically. Businesses need access to bridge financing to help them get through the coming weeks and months.
The Burnaby Board of Trade is advocating daily with government to get more flexible, low-barrier financing to businesses, particularly small businesses. Many financial institutions are offering to be flexible with terms on a one-by-one basis, but a broad-based strategy to support small business cash flow is critical.
Currently, the federal government has announced the Business Credit Availability Program which will provide loans to businesses under the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Here are the details of how this program works:
Business Development Bank – Funding for Businesses and Entrepreneurs
BDC will support businesses in getting bridge financing in the form of working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses will be made available. This funding can be used to pay leases/rent, utilities, wages payable and other obligations.
Businesses seeking support should first contact their financial institutions for an assessment of their situation. Financial institutions will refer the business to BDC their existing clients whose needs extend beyond what is available through the private sector alone. Existing BDC clients should reach out to their account manager for additional information. For information on this program, visit the BDC.ca
Export Development Canada – Funding for Exporters
EDC is also being empowered to make similar access to credit for Canada’s exporters, and is able to help provide capital and credit to support exporters doing business internationally. For information on this program, visit the EDC.ca or call their hotline at 1-800-229-0575
Information on government funding programs, and other COVID-19 programs, is available online at the Burnaby Board of Trade’s COVID-19 Updates page: bit.ly/BBOTCOVID.
The Burnaby Board of Trade is Burnaby’s chamber of commerce, and is a catalyst for economic growth, the convener of business and community leaders, and a champion for the interests of local businesses.