Muskoka Businesses; How to apply for federal credit available to small & medium size business

Muskoka Post Staff

The federal government has established a Business Credit Availability Program (BCAP) which will provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).

BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.

This program includes:

  • Loan Guarantee for Small and Medium-Sized Enterprises EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs

  • Co-Lending Program for Small and Medium-Sized Enterprises BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.

These programs will roll out in mid-April, and interested businesses should work with their current financial institutions.

Points of Interest

  • $10,000, which is 25%, of the $40,000 loan is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.

  • If the loan can’t be repaid by December 31, 2022, it can be converted into a 3-year term loan charging an interest rate of 5%.

Who is eligible for the loan?

Businesses or not-for-profits will be eligible to apply for this loan if they have:

  • an operating company registered in Canada;

  • an annual payroll of between $50,000 and $1 million, based on their 2019 T4SUM Summary of Remuneration Paid; and

  • they have an operating bank account as of March 1, 2020

How to apply

Visit the website of your bank and look for information about COVID-19 and CEBA. This section will point you to a link or information on how to apply through your bank.

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