Business Credit Availability Program title graphic

BCAP: Respective Roles of EDC and BDC

EDC and BDC have complementary roles and competencies. Under the provisions of the 2009 budget, which aimed to maximize financial support for entrepreneurs during an exceptional period of recession and reduced access to credit, their roles were expanded and, in some instances, may have appeared to overlap. The solution to potential overlap was an efficient referral system. BDC and EDC created such a system so that companies, regardless of which of the two Crowns they first approached for support, were directed expeditiously to the appropriate one.

In addition, the following criteria determined whether BDC or EDC was best positioned to support a given company or transaction.

Existing Relationships:
When a company was already a client of either corporation, that Crown should have been the first point of contact.

For Direct Financing:
A) For companies with sales under $50 million, BDC should have been approached.

B) For companies with sales of more than $50 million and exposure of up to $75 million, either BDC or EDC could have supported the transaction, depending on the product and type of expertise required.

Sector and structure specialization:

  • Sectors and structures better covered by BDC were:
    • real estate
    • wholesale and retail distribution
    • media and communication
    • construction
  • Sectors and structures better covered by EDC were:
    • financial services
    • oil & gas exploration, mining
    • structured finance
    • foreign currency transactions

C) For companies with exposure greater than $55 million EDC should have been approached.

For Guarantees:
For facilities from $400,000 to $40 million, financial institutions should have referred first to BDC’s Operating Line of Credit Guarantee (OLCG).
The OLCG became available in spring 2009

For facilities up to $400,000 or beyond $40 million, EDC could have provided coverage using its guarantee programs, which were temporarily expanded to the domestic market.