BDC sets aside $500 million in financing to help SMEs handle low oil prices
The Business Development Bank of Canada has earmarked $500 million in additional financing to help small- and medium-sized businesses affected by the downturn in oil prices.
The Business Development Bank of Canada (BDC) has earmarked $500 million in additional financing for small and medium-sized Canadian businesses impacted by the decline in oil prices. It will also provide advisory solutions to help companies adjust their business operations to the current economic downturn.
The strategy is intended to help promising companies diversify their businesses, increase operational efficiency, buy new equipment and improve financial management, said BDC president and CEO Michael Denham.
The amount represents a 40 per cent hike in the amount of money the bank would normally lend to clients in the oil and gas and related manufacturing sectors, he said, adding the bank will also work to process applications faster.
“The best way for Canada’s economy to thrive is to build resilient businesses that can take advantage of opportunities, survive economic slowdowns and prosper,” Denham said in a statement. “We want to ensure that the many well-run companies that enjoyed success before the downturn continue to receive the financing and advice they require.”