TORONTO, April 23, 2020 /CNW/ - Starting today, BMO business clients can apply for the Business Development Bank of Canada (BDC) financial relief program, as part of the Government of Canada's Business Credit Availability Program (BCAP). Business clients are encouraged to reach out to their BMO Relationship Manager to understand how this and other relief measures may help their business.
"We will, as we always have, stand behind Canadian businesses. We are focused on continually looking for ways to support our clients to help them overcome any cash flow concerns and with business continuity," said Nadim Hirji, Co-Head, Canadian Commercial Banking, BMO Financial Group. "The BDC program provides an additional relief option to clients who have been affected by COVID-19 and offers a flexible financing solution for businesses. BMO business clients have many relief options, including other Government-backed programs and existing BMO relief programs, and we're encouraging them to reach out to us to understand how we can support their individual needs," said Christine Cooper, Co-Head, Canadian Commercial Banking, BMO Financial Group.
The BDC Co-Lending program offers eligible BMO business clients term loans up to $6.25 million, 80 per cent of which would be provided through BDC. Financing amounts available differ based on business revenue. Loans can be interest-only for up to 12 months, with a term of up to 10 years and amortization up to 20 years. Loans are determined on a case-by-case basis.
As well, the Export Development Canada (EDC) BCAP Guarantee is available to qualifying businesses. The program provides new operating lines of credit or term loans of up to $6.25 million, with 80 per cent guaranteed by EDC. It is designed to help with payroll and operating costs. To apply, business clients can connect with their BMO Relationship Manager.
The Canada Emergency Business Account is also available for businesses with annual payroll between $20,000 and $1.5 million and provides interest-free loans of up to $40,000. Full criteria for eligible businesses, as well as the application to apply, can be found on BMO's secure site.
Standing behind Canadian businesses
Additional relief measures in support of Canadian businesses announced by BMO include:
- Deferral of payment on small business credit cards and credit lines
- Payment deferral on the principal of a small business loan
- Increases on small business operating lines to help with short-term working capital. For clients requesting an increase on an operating line, BMO may advance payroll to help ensure consistency with employee pay
- Tailored relief programs for other businesses, which may include payment deferrals on loans, lines of credit and access to additional working capital
- One-on-one advice on business plans and options to overcome any liquidity concerns, for medium-sized businesses
"Canadian businesses – especially small businesses – are economic drivers of our economy," said Andrew Irvine, Head, Canadian Business Banking, BMO Bank of Montreal. "Every day our team is helping our clients navigate one of the hardest financial periods in history. We are here standing with them."
Commercial banking clients can stay updated with BMO on COVID-19 and find the latest insights from experts on the bank's commercial relief page.
Business banking clients are encouraged to visit BMO's dedicated COVID-19 small business support page for regular updates and to learn more about relief measures.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $880 billion as of January 31, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group