Bars and lounges now eligible for Business Development Bank pandemic programs

Apr 6 2020, 1:52 pm

Industries — including those in hospitality — that were not initially included in lending services provided by the Business Development Bank of Canada (BDC) are now eligible.

Originally, a select group of industries had been offered assistance in the program in order to mitigate the economic impacts of the COVID-19 pandemic.

However, the bank announced on Monday that “all legal businesses will be eligible for the Business Credit Availability Program (BCAP), for the duration of the program.”

For eligible businesses, this means access to the Canada Emergency Business Account and SME Loan and Guarantee program.

“Businesses in the cannabis sector and the hospitality sector operating bars and lounges will now be eligible,” reads a release from the bank.

In March, the federal government established the Business Credit Availability Program (BCAP) to help Canadian businesses obtain financing during the pandemic and resulting economic downturn.

Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) is providing $65 billion in direct lending and other types of financial support to businesses with “viable business models” whose access to financing would otherwise be restricted, according to the Government of Canada.

“As part of the BDC co-lending program,” the bank wrote in its statement, “eligible businesses may obtain incremental credit amounts of up to $6.25 million, 80% of which would be provided by BDC, with the remaining 20% by the financial institution.”