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Business Credit Availability Program (BCAP)

The Government of Canada has introduced the Business Credit Availability Program (BCAP) to help Canadian businesses obtain financing during the current period of significant uncertainty.

BCAP will support access to financing for Canadian businesses in all sectors and regions. Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will provide direct lending and
other types of financial support.

For additional information on any of the BCAP programs or to apply, Businesses should contact their primary lender, where they have a pre-existing relationship. Businesses that are impacted can contact them by phone or email to find out
about their application process.

BCAP includes the following programs:

EDC Loan Guarantee for Small and Medium-Sized Enterprises (BCAP – EDC)

This program provides credit and cash flow term loans to small and medium-sized enterprises. Canadian businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

It allows financial institutions to issue operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.

This money is to be used for operational expenses, not for dividend payouts, shareholder loans, bonuses, stock buyback, option issuance, increases to executive compensation or repayment/refinancing of other debt.

This program is now available at various financial institutions and credit unions.


BDC Co-Lending Program for Small and Medium Enterprises (BCAP-BDC)

BDC partners with financial institutions to co-lend term loans to businesses for their operational cash flow requirements. Eligible businesses may obtain differing maximum finance amounts based on business revenues, up to $6.25 million, 80% of which would be provided by BDC, with the remaining 20% provided by the financial institution.

This program provides term loans for operational and liquidity needs of businesses, which could include interest payments on existing debt. Similar to the EDC program, this program is available to businesses that were financially viable and revenue-generating prior to the COVID-19 outbreak.

The program is designed in three segments to target support to different business sizes:

  • Loans of up to $312,500 to businesses with revenues of less than $1 million
  • Up to $3.125 million for businesses with revenues between $1 million and $50 million.
  • Up to $6.25 million for businesses with revenues in excess of $50 million.

Application details for this program will be made available in the days to come by the financial institutions.


Updated Information:

The Business Credit Availability Program (BCAP) is expanded to mid-sized companies with larger financing needs.

BDC expands co-lending program: Mid-Market Financing Program

Through Mid-Market Financing Program, BDC will make additional credit available to complement businesses’ existing debt facilities. Loans will be issued through the businesses’ primary lenders.

Qualifying companies for the Mid-Market Financing Program must have been financially stable and viable prior to the current economic downturn. BDC anticipates that eligible companies for this new program will have annual revenues more than $100 million. BDC will be offering loans between $12.5 million and $60 million each.

EDC expands loan guarantee

Under the expanded BCAP, loans from EDC will range in size from $16.75 million to $80 million. EDC will work with Canadian financial institutions to guarantee 75 percent of new operating credit and cash-flow loans for medium-sized businesses.

EDC said its portion of the expanded BCAP program aims to bring liquidity to companies “that tend to have” revenues ranging between $50 million and $300 million. These expanded guarantees will be available to exporters, international investors, and businesses that sell their products or services in Canada.

Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021, effective immediately. EDC said the details are still being finalized and will be released in early June.


Large Employer Emergency Financing Facility (LEEFF)

The Large Employer Emergency Financing Facility (LEEFF) will provide bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.

This program is delivered by the Canada Development Investment Corporation, in cooperation with Innovation, Science and Economic Development Canada and the Department of Finance.

The LEEFF program will be open to large for-profit businesses – with the exception of those in the financial sector – as well as certain not-for-profit businesses, such as airports, with annual revenues generally in the order of $300 million or higher.

To qualify, eligible businesses must be seeking financing of about $60 million or more, have significant operations or workforce in Canada, and not be involved in active insolvency proceedings. The additional liquidity provided through LEEFF will allow Canada’s largest businesses, their workers and their suppliers to remain active during this difficult time and position them for a rapid economic recovery.

For more information: