Financing options during COVID-19 business interruption

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With the current global spread of COVID-19, many business owners are left wondering what they can do to help ensure that the health and welfare of their businesses remain protected. The good news is that several different support options are available which can help to mitigate the impact that businesses may be feeling as a result of the current outbreak.  

Firstly, to help support businesses during this time, the Government of Canada has implemented what they are referring to as the Business Credit Availability Program (BCAP). Through this program, Canadian business owners will be able to coordinate financing options and access credit insurance solutions through the help of the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). To learn more about how the BDC hopes to support companies as we move towards a more stable period, check out this link:  
Alongside the BCAP, the Office of Superintendent of Financial Institution (OSFI) will be reducing the Domestic Stability Buffer requirement for all domestic systemically important banks by 1.25% of risk-weighted assets, effective immediately. THE OFSI believes that this move will help to improve the level of lending capacity of Canada’s large banks and support the supply of credit to the economy during this period of disruption related to COVID-19.   

Furthermore, the Bank of Canada has also committed itself to assist businesses through several different support programs. The first being, the Bankers’ Acceptance Purchase Facility, a key funding support market for small- and medium-sized businesses that may experience increased funding needs and credit conditions during this time. Next is the Standing Term Liquidity Facility (STLF), a supplement to the Bank’s current liquidity tools. The goal of the STFL will be to allow the Bank to provide loans to eligible financial institutions in need of temporary liquidity support and improve the Bank’s ability to recover from the current difficulties facing the Canadian financial system. Additionally, the Bank of Canada will also offer a bond buyback program as well as new Term Repo operations with terms of 6 and 12 months, in addition to its regular 1-month and 3-month Term Repo operations to support interbank funding.  

Whether or not your business is being indirectly or directly impacted by COVID-19, it is important to know that you have options and that you are ensuing that you and your business are prepared for any potential risk. 

As always please feel free to reach out to us with any questions/concerns you may have We are here to support you during these uncertain times. 

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