Devastated bars and lounges as well as the country’s hard-hit cannabis sector will have access to $40 billion in new credit being made available via the government’s business bank during the COVID-19 crisis, its CEO said on Sunday.
In an interview with The Canadian Press, Michael Denham said the program from the Business Development Bank of Canada would now be open to all businesses.
“Any legal business is eligible to be part of the program — that was what I think some industry groups were concerned about,” Denham said from Montreal. “That was clarified and we’re going to formally announce it on Monday.”
Applicants must go through their own banks to access the program.
The business development bank is a federal corporation with a loan portfolio of about $35 billion. The $40-billion credit availability program will be in addition to that, Denham said.
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Although it backstops higher risk loans than banks do, the Crown corporation does aim to be commercially viable. Those approaching their financial institutions for access to the program will have to show they would have been able to handle a loan before the coronavirus hit.
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The development bank, which has about 60,000 clients, has been making other changes given the unprecedented impact of the pandemic, Denham said. It has lowered its interest rates,
