Business Credit Availability Program

In Budget 2009, the federal government introduced the Business Credit Availability Program (BCAP), which provides at least $5 billion for additional lending to firms with a viable businesses model through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), and promotes cooperation with private sector lenders.  Banks welcome this program as an extra effort to find credit solutions for creditworthy business clients during this challenging economic time.

Despite the fact that financial market turbulence is most pronounced outside Canada, some parts of Canadian financial markets have been adversely affected by this turbulence and the BCAP was introduced by the federal government so that the public and private sector could work together to respond to financing gaps that affect viable businesses.  

While the banking sector continues to increase lending, to fill gaps left by some other suppliers of financing and to grow the sector’s overall market share, it is important to recognize that banks represent only one part of the broad financial marketplace.  Indeed, banks represent just over one-quarter of this broad marketplace (which includes equity and debt capital markets, finance and leasing companies, insurance companies, credit unions etc.).  While bank credit has been increasing year-over-year, it is not able to take up all the slack arising from other parts of the market.  

Through BCAP, Canadian businesses will be able to build on, and enhance where possible, existing products and relationships to facilitate access to flexible, incremental credit.

Participating banks

The Canadian Bankers Association (CBA) is working with both the EDC and BDC and our member banks to promote BCAP.  Should you wish to learn more about BCAP, please contact one of the following banks:

• BMO Bank of Montreal
• Canadian Western Bank
• CIBC
• HSBC
• Laurentian Bank
• National Bank of Canada
• RBC
• Scotiabank
• TD Canada Trust

Bank lending remains strong

• Despite tough economic times, credit has continued to be available to creditworthy businesses.
• Lending to businesses continues at a sustainable pace, and banks have helped fill a credit gap as some other lenders have slowed their financing or pulled back.
• As economic circumstances deteriorate, the demand for credit usually decreases. Nevertheless, banks will continue to lend to those who are credit-worthy.

The CBA’s Bank Lending backgrounder has more information on bank lending and Canada’s banking system.