BDC has partnered with Export Development Canada (EDC) to provide $50 million in funding to Canadian tech businesses involved in exporting over two years.
Through the partnership, tech companies engaged in or planning to engage in international business can access loans of up to $1 million. Companies looking to receive funding must earn at least 50 percent of their sales from exports or have an export strategy that the loan will support.
“This partnership…is about recognizing that potential and providing those companies with the capital they need to scale up and reach a new level of success.”
“I am delighted to announce this partnership with EDC, which will help more of Canada’s highly innovative technology entrepreneurs grow and scale their businesses and develop global markets,” said Pierre Dubreuil, executive vice-president of financing at BDC. “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.”
BDC and EDC said they will also refer clients to each other in order to improve access to funding and offer more networking opportunities for entrepreneurs. When providing funding to businesses, BDC will manage the end-to-end transactions of loans, while EDC will act as a participant in each loan.
“EDC is Canada’s leader in helping companies of all sizes expand internationally and, in that role, has a front-row seat to Canadian businesses competing against the world’s best,” said Mairead Lavery, senior vice-president of business development at EDC. “We see how Canada’s tech sector companies are second-to-none and we’re meeting with more of them, every day, that are primed and ready to become global champions in the industry. This partnership with BDC is about recognizing that potential and providing those companies with the capital they need to scale up and reach a new level of success.”
In the past, BDC has announced several initiatives to support Canadian tech entrepreneurs. In March, BDC announced a partnership with Women’s Enterprise Organizations Canada to better connect and support women entrepreneurs across Canada, and in April, BDC announced that it is providing $40 million in funding to four Canadian cleantech companies.