Canadian technology businesses now have access to $50 million in new financing over two years under a partnership agreement announced today between the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
Under the partnership, tech firms engaged in, or planning to engage in, international business can access working capital loans of up to $1 million. BDC and EDC will also refer clients to each other which will improve access to financing and offer more networking opportunities for tech entrepreneurs.
“I am delighted to announce this partnership with EDC, which will help more of Canada’s highly innovative technology entrepreneurs grow and scale their businesses and develop global markets,” says Pierre Dubreuil, Executive Vice-President, Financing at BDC. “As the only bank devoted exclusively to entrepreneurs, BDC is eager to help promising tech firms, which sometimes have difficulty accessing financing due to a lack of tangible assets. EDC’s network can be very appealing to these businesses, which have adopted an export mindset because their technology can be deployed globally.”
“EDC is Canada’s leader in helping companies of all sizes expand internationally and, in that role, has a front row seat to Canadian businesses competing against the world’s best. We see how Canada’s tech-sector companies are second-to-none and we’re meeting with more of them, every day, that are primed and ready to become global champions in the industry,” said Mairead Lavery, Senior Vice-President, Business Development at EDC. “This partnership with BDC is about recognizing that potential and providing those companies with the capital they need to scale up and reach a new level of success.”
“The Government of Canada is committed to helping small businesses in the tech sector scale up in international markets,” said the Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism. “Partnerships like this one will enable entrepreneurs and high-growth firms to expand internationally and create good, middle-class jobs for Canadians.”
“Canadian technology firms have an excellent track record in early-stage research and innovation, and they now have strong partners to help them scale up and tap into international markets,” said the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development. “The access to capital and additional export-oriented financial support provided by this program will help them grow their businesses, reach new global markets and achieve their full potential.”
BDC has a long history of supporting the tech space. The Bank offers term loans, investment capital and tailored advice to entrepreneurs at every stage of their growth.
Under the partnership, BDC will manage the end-to-end transaction, including due diligence, authorization, disbursement, asset management, loan enforcement and special risk functions. EDC will act as a participant and take a participation interest in each loan, to create a 50-50 risk sharing. To be eligible for financing, companies must earn at least 50% of their sales from exports or have an export business strategy that the loan is intended to support.
BDC has dedicated a team across Canada to focus on the specific financing needs of tech entrepreneurs and currently supports more than 2,100 tech entrepreneurs. Today’s agreement, combined to BDC’s tech-specific products, will add on to the team’s capacity in helping tech entrepreneurs grow, without diluting ownership of the company.
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 118 business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions. BDC is also the first financial institution in Canada to receive B Corp certification. To find out more, visit bdc.ca.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business. To help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.