Within days of social distancing measures being imposed across Canada, revenue at Flashfood, a grocery deals app, plunged by up to 70 per cent.
For Flashfood and other companies that were in a rapid growth phase prior to the pandemic, but not yet profitable, BDC’s criteria appear to be a massive stumbling block in obtaining coronavirus-related loans. BDC said in an email to the Post that each financing request is evaluated based on a business’s viability, financial health, credit history, risk level, annual revenues and management team’s experience.
Daryl Ching, managing partner at Toronto-based Vistance Capital Advisory, said BDC’s stringent lending requirements at an unprecedented time go completely against the federal government’s public statements that it is launching stimulus programs to support small businesses. But obtaining this second type of loan appears to be tricky, said Adam Froman, founder and chief executive of Delvinia, a Toronto-based scale-up specializing in digital innovation.
Froman believes BDC is simply not designed to deal with startups and scale-ups because it is structured like a traditional bank.
Here we go folks. The National Post is looking in the direction of the BDC. Skirting around the EDC which is the big elephant in the room.Program,a $65-billion initiative that disperses loans through BDC and Export Development Canada (EDC).this is the company you need to dissect