COVID-19 is having a significant impact on Canadian businesses.
The following are some strategies we are discussing with our
clients:
Business Credit Availability Program
The Government of Canada has announced the establishment of the
$10-billion Business Credit Availability Program (BCAP) that will
allow the Business Development Bank of Canada (BDC) and Export
Development Canada (EDC) to provide additional liquidity to
Canadian businesses.
Business Development Bank of Canada
Through the BCAP program BDC will provide working capital loans
of up to $2 million to creditworthy borrowers. BCAP loans will be
granted to borrowers whose requirements are greater than what they
are able to obtain from their existing financial institution. BCAP
loans will have a three (3) year term. No payments of principal
will be required for the first year the loan. After the first year,
40% of the principal will be payable over the following two (2)
years at 20% per year. The
