The BDC announced today the results of its comprehensive Economic Recovery Loans Program for small and medium sized businesses. The program supported existing BDC clients with pre-approved loans, many of which were used to finance working capital requirements and make other investments. BDC committed $251.4 million to 3,791 entrepreneurs in all regions of the country under the terms of the program, which ran from July to October 2010.
Results of BDC’s Economic Recovery Loans Program
|Region||Number of loans||Amount (in $)|
|West and Prairies||1,022||66,970,000|
“The impetus for the Economic Recovery Loans Program came when BDC conducted local market intelligence surveys in spring 2010. At the time, entrepreneurs were shifting their operational priorities from recession to recovery and voicing concerns about having a lack of working capital to finance day-to-day activities or money to invest in long term strategic initiatives,” said France de Gaspé Beaubien, Vice President, Financing and Marketing.
BDC responded by contacting 13,000 pre-selected customers to gauge interest in the pre-approved loan program. Their reaction was overwhelmingly positive: a third of them took the new loan in the three months immediately following the program’s launch.
One of those entrepreneurs is George Yung, CEO, of CBIT Computer Boulevard in Winnipeg. Yung, who has more than 40 employees, said the BDC loan came at just the right time: “I’m using the money to build up my inventory so I have more variety and a bigger range of products for customers at Christmas. The loan certainly came in handy.”
In the tourist town of Saint Sauveur, north of Montréal, Howard Sauvé operates a coffee roasting house and café called les Brûleries des monts inc. “I was really surprised and happy to hear from the BDC,” he said. “During the recession or, rather, the depression, our sales were flat. We didn’t have the money to invest in an online marketing project that had been on the back burner for at least 18 months. With the pre-approved loan, we are now moving ahead with that project and hoping to grow bigger. For us, BDC is a life saver.”
France de Gaspé Beaubien commented, “I am proud of the results we have achieved with the pre-approved Economic Recovery Loan Program. BDC puts entrepreneurs first and this program is another example of how we respond to the market and help entrepreneurs to invest, innovate and grow. We were strong supporters of Canada’s small and medium sized during the recession and will continue to help them as the economy shows signs of recovery.”
BDC is Canada’s business development bank. From more than 100 business centres across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. http://www.bdc.ca/
For further information:
Director, Public Relations, BDC