Government of Canada Announces $450 Million in New Funding for BDC to Assist Canadian Businesses

The funding will lead to financing for Canadian small businesses in all sectors, including manufacturing, science and technology, construction, tourism, forestry and fishing. It is expected that a large proportion of this support will be extended to the manufacturing and tourism sectors, which currently represent about 45 percent of the BDC portfolio.

As well, the Government of Canada is providing $350 million to the BDC over three years to help drive venture capital investment in promising Canadian businesses and build an industry that is sustainable over the long term. The funding will allow the BDC to make additional direct investments of $260 million in Canadian businesses already in the BDC portfolio, as well as investments in new seed technology companies and later-stage technology companies. It will also allow the BDC to commit $90 million in investments over three years in private, independent Canadian venture capital funds. Venture capital fundraising refers to funds raised by venture capital firms in order to make investments in companies, whereas venture capital investment refers to the actual disbursements made by the venture capital firms.

Of this $350 million in funding, $125 million will be provided in 2009-2010 and 2010-2011 and $100 million will be provided in 2011-2012. This is in addition to the $75 million allocated in the Government of Canada's 2008 Budget, which is being used to support the creation of a privately run late-stage venture capital fund.

The BDC holds a loan portfolio of about $11 billion. Broken down by industry sector, this translates into 31.3 percent of its loans for the manufacturing sector, 21.5 percent for wholesale and retail trade, 12.4 percent for tourism, 6.9 percent for construction, 5.5 percent for transportation and storage, 5.5 percent for commercial properties, 4.6 percent for business services, and 12.3 percent for other industries.

The BDC has both a physical and a virtual pan-Canadian presence, serving over 28 000 Canadian entrepreneurs through 100 branches in all regions of the country. It provides advice and financing to entrepreneurs from diverse backgrounds, venture capital for start-ups, and working capital to help small exporters bridge the gap between the Canadian market in which they operate and their targeted international market. The BDC is well positioned to help its clients and will continue to support Canadian entrepreneurs as a whole.

Contacts: Office of the Honourable Tony Clement Minister of Industry Pema Lhalungpa - Press Secretary 613-995-9001 Industry Canada Media Relations 613-943-2502 Business Development Bank of Canada Johanne Bissonnette Media Relations Manager 514-283-7929 johanne.bissonnette@bdc.ca