BDC Launches New Loan for SMEs

A new loan recently launched by the Business Development Bank of Canada (BDC) can help Canadian small and medium-sized enterprises finance the expansion of their domestic and international markets.
Referred to as the Market Xpansion LoanTM, the new loan will help Canadian firms:

• participate in trade shows and conduct business development overseas;
• develop local or international contacts and distribution networks;
• develop export plans;
• develop e-commerce;
• produce and implement a marketing plan; and
• purchase additional inventory to expand and export to new markets.

According to BDC’s website, repayment terms are tailored for maximum flexibility. For example, SMEs can get up to $50,000 in long-term financing and BDC can re-advance any repaid portion of the loan starting at a minimum of $10,000, though conditions apply. This option offers businesses the flexibility to borrow more money when they need it.

The loan features a maximum amortization period of 8 years including the possibility to defer principle payments for the first 12 months of the loan. There is a prepayment privilege of up to 100% of the balance without penalty at any time during the term of the loan. Also, borrowers can make seasonal or semi-annual payments.

Canadian SMEs looking to develop an international business plan may want to contact BDC consultants who can help them assess their global readiness, identify areas that require focus, identify potential markets, conduct thorough market research, and access an extensive network through BDC's global partners, including the Canadian Trade Commissioner Service.

For more information, visit the BDC and the Canadian Trade Commissioner Service websites.