Business Development Bank of Canada (BDC) and Export Development Canada (EDC) announced that they will jointly offer $50m in new financing over two years for tech firms that are engaged in and have plans for international business expansion.
With the agreement, tech firms will have the access to working capital loans of up to $1m. To be eligible for financing, tech firms must earn at least 50% of their sales from exports or have an export business strategy that the loan is intended to support.
Under the partnership, BDC will manage the end-to-end transaction, including due diligence, authorization, disbursement, asset management, loan enforcement and special risk functions. EDC will act as a participant and take a participation interest in each loan, to create a 50-50 risk sharing.
BDC executive vice president for financing Pierre Dubreuil said the partnership will be able to help more of Canada's highly innovative tech entrepreneurs gain scale globally.
“As the only bank devoted exclusively to entrepreneurs, BDC is eager to help promising tech firms, which sometimes have difficulty accessing financing due to a lack of tangible assets. EDC’s network can be very appealing to these businesses, which have adopted an export mindset because their technology can be deployed globally,' Dubreuil said.
This article has been edited. It first appeared on Private Capital Journal, a site managed by CPE Media Inc, the official data provider for PCMA. Read the rest of the article here.
Click here to subscribe to the Private Capital Journal. PCMA members receive a 10% discount on all their subscriptions. Part of your subscription fee goes to support the PCMA.
Check out these subscriber-only news items on Private Capital Journal:
Polystyvert raised $11M from Quadriam Investments, Energy Foundry, Transition énergétique Québec, Anges Québec, Anges Québec Capital, Cycle Capital Management, SDTC
SoundBite Medical Solutions secured $5.2M Series A add-on led by an Asian investor, bringing total funding of Fidelity Investments Canada led Series A to $25M
Fexible workspace provider, Breather secured $60M strategic funding led by Caisse de dépôt et placement du Québec and with participation of Temasek, Ascendas-Singbridge, others