Small businesses hit by low oil prices get $500M extra financing from BDC

CALGARY – The Business Development Bank of Canada is setting aside $500 million in extra financing for small and medium businesses affected by low oil prices.

The Crown corporation says the money is intended to help businesses diversify, increase their efficiency, improve financial management and buy new technology and equipment.

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The increase is a 40 per cent boost compared with the bank’s normal lending in the sector, BDC spokesman Shawn Salewski says.

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He adds financing will likely be concentrated in Alberta, Saskatchewan and Newfoundland.

The development bank also plans to provide advice to companies to help them weather the current economic downturn.

BDC helps Canadian entrepreneurs through loans, investments and advisory services.

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