What is BDC Offering?
- Working capital loans of up to $2 million with flexible terms and payment postponements for up to 12 months for qualifying businesses;
- Postponement of payments for up to six months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less
- BDC Prime Floating rate minus -1.75% (e.g. Current rate is 5.05% – 1.75% = 3.3%)
Who Does Not Qualify?
- Companies currently in special loans
- Businesses that are sexually exploitive, operate bars, lounges or similar establishments; gaming operations (casinos, bingo halls, racetracks, on-line gambling sites, etc.) pawnshops, nursing homes, rent-to-own firms, pay day loan companies, cheque discounting centers, or similar quasi-financial institutions.
- Businesses whose financials statements would indicate that the business would not have qualified prior to COVID-19
- Companies in breach of Senior Lender covenants (note exceptions may be made if your Senior Lender is willing to waive those covenants)
What you Need?
STATEMENT OF PERSONAL AFFAIRS* (for each Shareholder)
- Municipal value of principal residence and income properties less mortgage balance (s) owing
- Current value of RRSPs, TFSA and other Marketable Investments (Stocks, Bonds, GICs, etc.)
- Unsecured personal debts (bank loans, line of credit, other liabilities, etc.)
APPLICATION FOR FINANCING* (for the Corporation seeking the financing)
- Shareholder details (Name, ownership %, address, date of birth, etc.)
- Corporate details (Corporate name, address, etc.)
- Borrower project details (why are you seeking financing)
- Borrower’s financial institution(s), external accountant
- Driver’s license or passport for each shareholder
- Corporate organizational chart
- Last 3 years Accountant prepared year-end financial statements for the business, including any related companies (i.e. Holding Company)
- Most recent interim financial statements (if year-end is more than 3-months old) with comparisons to the previous year’s interim statements
- Six-month cash flow forecast
- Profile of the Management team
*BDC is experiencing higher than normal volumes at the moment. If you are not an existing client and would like to apply for working capital support, please reach out to us and we can provide you with the necessary applications to speed up the progress. Whether you are a BDC client or not, Welch Capital Partners and Welch LLP are here to help.