Feds grant $1.2 billion in loans to 4,927 unidentified businesses

DM

The federal Business Development Bank of Canada (BDC) approved 100% loan guarantees of $1.2 billion to 4,972 unidentified businesses. The loans were disclosed in a recently released BDC report to the House of Commons finance committee. The BDC is a crown corporation, is wholly owned by the federal government and is a major lender and investor in companies across Canada. Loans were approved through a Highly Affected Sectors Credit Availability Program launched by the cabinet in February 2021. Companies that previously qualified for wage and rent subsidies and showed 50% revenue losses in three of the previous eight months before their application were eligible for 100% loan guarantees, as first reported by Blacklock’s reporter. Official estimates show that fifty-two banks and credit unions across Canada have enrolled in the program to date. Records show that loans reaching $6.25 million were made available to chain operators of hotels and restaurants. The program waives interest payments for a year, and the 4% loans have a decade-long repayment period. Spokesperson for the United Here union representing hospitality workers Michelle Travis urged borrowers to be identified.

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