MONTREAL, QC–As part of a Team Canada response to the COVID-19 crisis, the Government of Canada, through BDC, Canada’s bank for entrepreneurs, and Export Development Canada (EDC) will make available additional financial capacity to help support Canada’s oil and gas sector.
The commercial support, being developed by BDC and EDC, is intended to help Canada’s exploration and production, mid-stream, and oil-field companies navigate these uncertain times. The new measures are aimed at helping bring liquidity into the market in order to manage the challenges companies are facing due to the global pandemic and decline in oil prices.
“BDC is here to support Canadian entrepreneurs in good times and in bad. Working with EDC, we are committed to helping businesses, big and small, get through this incredibly challenging time,” said Michael Denham, President and CEO of BDC. “Our focus is to bring liquidity to Canadian companies, including those in the oil and gas sector, to help them stay afloat and keep their employees working.”
As part of today’s announcement, BDC will make available higher risk financing for Canada’s oil and gas sector, to strengthen companies’ financial position and complement financing available from EDC and other financial institutions. These commercial loans, ranging in size between $15 million and $60 million each, are meant to be used to fund operational cashflow needs for a 12-month period which in turn will ensure a degree of continuity of operations during this period of uncertainty. Eligible companies must have been financially viable prior to the current economic environment.
This new support comes on top of measures already included in the Business Credit Availability Program (BCAP) as well as other measures previously announced by BDC available to smaller companies in all sectors, including working capital loans for businesses impacted by COVID-19 with flexible repayment terms such as principal postponements to help bridge entrepreneurs to a more stable time. Since the beginning of March, the Bank has processed more than 30,000 payment postponements for its existing clients and authorized 4.5 times more financing dollars that it had during the same period last year.
Additional details regarding the new oil and gas sector support program are being finalized and will be made available shortly. Existing BDC clients should contact their account manager for more information. Non-clients are encouraged to visit bdc.ca/coronavirus to sign up for an update once details become available.
This financing complements support also announced today from EDC. This business support will be provided through its lending, bonding and account receivable insurance products.
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, both online and in-person, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For 75 years and counting, BDC’s purpose has been to support entrepreneurs in all industries and all stages of growth.