Government Loans to Businesses – COVID-19 SUPPORT

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Business Credit Availability Program (BCAP) 

The Government of Canada has introduced this credit program to help businesses obtain financing during the current period of significant uncertainty.

BCAP will support access to financing for Canadian businesses in all sectors and regions. Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will provide $65 billion in direct lending and other types of financial support.

Businesses should contact their primary lender, where they have a pre-existing banking relationship either by phone or email to find out about the application process.

EDC Loan Guaranteed –  small and medium-sized enterprises  

This program provides credit and cash flow term loans to small and medium-sized enterprises. Canadian businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

It allows financial institutions to issue operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.

This money is to be used for operational expenses, not for dividend payouts, shareholder loans, bonuses, stock buyback, option issuance, increases to executive compensation or repayment/refinancing of other debt.

This program is available at various financial institutions and credit unions.  Contact your primary lender by phone or email.

BDC and EDC can also be contacted at:  Business Development Bank of Canada 1-877-232-2269 Export Development Canada 1-800-229-0575.

Interest Free Loan – update

Businesses and non for profits no longer need to show a minimum of $50,000 in payroll to qualify for up to $40,000 interest free term loan on the Canadian Emergency Business Account (CEBA).

The minimum payroll remuneration has been adjusted to $20,000.00.  Employers may be asked to provide their business remuneration T4 for 2019.

Listed below are some institutions. Small businesses and not-for-profits should contact their financial institution to apply.