Business Credit Availability Program (BCAP)

In Budget 2009: Canada’s Economic Action Plan, the Government announced the launch of the Extraordinary Financing Framework (EFF).  Through the EFF, the Government is providing up to $200 billion in existing and new measures to help Canadians and Canadian businesses obtain financing during the current extraordinary period. 

The Business Credit Availability Program (BCAP), an element of the EFF, will improve access to financing for Canadian businesses by providing new resources and flexibilities to Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) combined with enhanced cooperation between private sector lenders and those financial Crown corporations.

Through this program, EDC and BDC will provide at least $5 billion in direct lending and other types of support and facilitation at market rates to businesses with viable business models whose access to financing would otherwise be restricted. By working in close cooperation with private sector lenders, this program will fill gaps in market access and lever additional lending by private sector institutions in cases where joint participation facilitates private action.

Participating private sector lenders have committed to:

• Working with the financial Crown corporations to find solutions for creditworthy business clients who would otherwise have insufficient access to credit.
• Ensuring that the extension of credit by financial Crown corporations is incremental for Canadian businesses and does not displace or substitute for private credit in aggregate.

BCAP is steered by an oversight group of representatives of the Department of Finance Canada, the Bank of Canada, EDC, BDC, and Canadian financial institutions.  The steering group meets regularly to share information and search for more effective ways to collaborate.

The Government will monitor the program with participating lenders to ensure it is meeting its objectives.