Information on the Business Credit Availability Program (BCAP) Program

As part of the federal government’s new $65 billion Business Credit Availability Program (BCAP), Kawartha Credit Union and Export Development Canada (EDC) and Business Development Bank of Canada (BDC) have partnered to provide small-and medium-sized businesses with financing during the COVID-19 pandemic.

Eligible businesses can apply for this loan to cover payroll and other operating expenses BCAP loans cannot be used to accelerate repayment or refinance existing debt, and further restrictions apply to other non-operational costs. Export sales are not required to qualify for the program.

Fees related to the loan will be deferred for the first six months, giving some short-term relief to your business.

The BCAP program has two components: (1) An Export Development Canada (EDC) guaranteed cash flow loan which must be used to finance short term operational costs such as payroll, rent and ordinary course payments such as business lease, equipment or supplier financing payments. Terms and conditions of the loans include eligibility qualifications and a maximum term/amortization of 5 years; and (2) A Business Development Bank of Canada (BDC) and Kawartha Credit Union co-lending cash flow loan which must also be used to finance short term operational costs such as payroll, rent and ordinary course payments such as business lease, equipment or supplier financing payments. Terms and conditions of the loans include eligibility qualifications and a maximum term of 10 years and maximum amortization of 20 years.

Export Development Corporation: https://www.edc.ca/en/campaign/bcap-guarantee.html

Business Development Corporation: https://www.bdc.ca/en/pages/co-lending-program.aspx

BCAP Guarantee Product Sheet: http://www.kawarthacu.com/AboutUs/MediaCenter/MemberNotices/BCAP/EDCBCAPGuaranteeProductSheet.pdf