Lower oil prices are causing a crisis for many businesses throughout Canada, especially smaller businesses that often operate on much thinner profit margins. For businesses like this, a difficult economic year can mean the difference between staying afloat and shuttering. In an effort to lend additional support Canada’s economy and business world, Business Development Bank of Canada (BDC) announced today that it has earmarked an extra $500 million in financing available for small- and medium-sized enterprises (SMEs) that have been negatively impact by the fluctuation in oil prices.
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“The best way for Canada’s economy to thrive is to build resilient businesses that can take advantage of opportunities, survive economic slowdowns and prosper,” said Michael Denham, President and CEO of BDC, in a statement issued by the company. “We want to ensure that the many well-run companies that enjoyed success before the downturn continue to receive the financing and advice they require.”
The BDC aims to use this funding to help SMEs with projects that could improve profits on a more sustainable basis—projects like product or service diversification, operational efficiency improvements, new equipment, and improvements in financial management.
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“Uncertainty can create opportunity and our support is intended to help these companies diversify and bounce back more strongly than ever,” Denham added. “As Canada’s only bank devoted exclusively to entrepreneurs, we are committed to helping affected companies ride out these turbulent times and take advantage of new business opportunities.”