OTTAWA, August 10, 2009 - The Business Development Bank of Canada (BDC) experienced a record increase in loans to businesses during the first quarter of 2009–10. This increase is largely due to the Government of Canada's recent investments in the BDC through the Business Credit Availability Program.
"These impressive results show that access to credit at the BDC is very much improved for business owners through Canada's Economic Action Plan," said the Honourable Tony Clement, Minister of Industry. "Today's result shows that the stimulus our government is making available is doing exactly what it was intended to - creating jobs and saving businesses in Canada during this global recession."
"Canada's Economic Action Plan and the Business Credit Availability Program are delivering timely and effective stimulus by improving Canadian businesses' access to credit," said the Honourable Jim Flaherty, Minister of Finance. "The support we are providing will help businesses to weather the current economic situation and to thrive as the economy makes continued improvements."
Entrepreneurs in all parts of Canada benefited from the BDC's increased lending activity. All regions posted an increase in the amount of loans accepted. In the month of June alone, the amount of loans accepted was 57 percent higher than in the same month last year.
In the first quarter ending June 30, the total dollar amount of loans accepted by the BDC's clients jumped 37 percent compared to the same period last year, from $738 million in 2008 to just over $1 billion in 2009. This is the largest quarterly increase in the BDC's history.
"Right across the country, our teams have worked flat out to help entrepreneurs put together the financing they need to develop their businesses," said Edmée Métivier, Executive Vice President, Financing and Consulting, BDC. "These results were achieved by working closely with our colleagues from private sector financial institutions to ensure that viable enterprises have access to the financing they need to keep growing."
The Business Credit Availability Program was announced in Canada's Economic Action Plan. It improves access to financing for Canadian businesses during this period of economic uncertainty through enhanced cooperation between private sector financial institutions and the financial Crown corporations.
Through the Business Credit Availability Program, the BDC, Export Development Canada (EDC) and private sector financial institutions are providing at least $5 billion in additional loans and other forms of credit support and enhancement at market rates to businesses with viable business models whose access to financing would otherwise be restricted.
Participating private sector lenders have committed to work with the BDC and EDC to find solutions for creditworthy businesses that would otherwise have insufficient access to credit.
The BDC is Canada's business development bank. From 100 offices across the country, the BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs.
To learn more, please visit the Business Credit Availability Program website or Canada's Economic Action Plan website.
For further information (media only), please contact:
Laryssa Waler
A/Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001
Media Relations
Industry Canada
613-943-2502
Johanne Bissonnette
Media Relations Manager
Business Development Bank of Canada
514-283-7929
