How SME's affected by COVID-19 can apply for a loan through BDC

23 Mar 2020 10:49 AM | Anonymous

Most of you have already heard that BDC in cooperation with EDC will receive a 10 Billion dollar envelope to help entrepreneurs that are directly impacted by COVID-19.

For loans under $100,000 you can apply online and get the same lower interest rate due to COVID-19. There is no application fee and it is a simple online process.  The minimum criteria is 2 years in business and decent/good personal credit.

Here is the application link. Where it asks for BDC Representative add:  Anna Lorena Sauve

For loans over $100,000 please refer to the details below for what is required. 

Details on the loan:

  • Structure: Working Capital Loan
  • Max Amount: Up to $2Million (max amount is 2M - due diligence applied on a case by case basis)
  • Exclusions: Start-ups, refinancing, change of ownership
  • Terms + Conditions: 12 month principal postponement - interest will be due 30 days following initial disbursement
  • Repayment max: 36 months

Documents required:

  • The last three years of year-end financial statements
  • Most recent year-to-date financials (Balance Sheet, comparable income statement to last year, aged A/R and aged A/P listing)
  • Sales and cashflow projections for the next two fiscal years on a month over month basis
  • Loan Application Form – required only if no new loans have been requested in last 2 years. (click to download form)
  • Personal Net Worth Form – required only if no new loans have been requested in last 2 years (click to download form)
  • Organizational Chart showing the ownership of all companies
  • Copy of current line of credit agreement with financial institution
  • ID verification
  • Site visit
  • Overview of costs within the next few months (see questions below that help to answer that question

Additional questions to be answered

  • At what activity level do you anticipate to operate at over the next six months (ie: full shut down or reduced capacity, what are the main impacts on your activities, specialized staff, access to premisis or employees to work remotely)
  • What are the key carrying costs (burn rate) for the next six months? (ie: rent, insurance, electricity, salaries, financial fees)
  • With a working capital loan and/or postponement and support from other lenders, does this cover your cash needs for the next six months?
  • What are your agreements with key suppliers and customers on payment terms / support for the next six months

For further questions contact:

Anna Lorena Sauve, Senior Account Manager BDC
t. 587.797.2101  e. annalorena.sauve@bdc.ca



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