[et_pb_section fb_built=”1″ _builder_version=”4.16.1″ background_color=”#4B4B4D” background_image=”https:\/\/canada.coop\/wp-content\/uploads\/Lettre-oo-cmc.png” background_blend=”multiply” custom_padding=”40px|0px|40px|0px|true|false” animation_style=”fade” animation_duration=”1200ms” animation_delay=”100ms” global_colors_info=”{}”][et_pb_row _builder_version=”4.16.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px||0px||false|false” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”3%” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16.1″ custom_padding=”0px||0px||true|false” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16.1″ text_font=”||||||||” header_font=”|700||on|||||dotted” header_text_align=”center” header_text_color=”#FFFFFF” header_font_size=”40px” header_line_height=”1.3em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”0px||0px||true|false” custom_padding=”9px||1px||false|false” animation_style=”fade” header_font_size_last_edited=”off|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.17.0″ _module_preset=”default” background_image=”https:\/\/canada.coop\/wp-content\/uploads\/circle-background-pattern.png” global_colors_info=”{}”][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Background” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_heading][et_pb_text _builder_version=”4.23.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Th<\/span>e<\/span> <\/span><\/span>BDC Legislative Review 2010<\/span><\/span>\u2013<\/span><\/span><\/span>2022<\/span><\/span><\/span><\/a> <\/span>states that <\/span><\/span>\u201c<\/span><\/span><\/span>[t]he <\/span><\/span><\/span>Business Development Bank of Canada (BDC) is a financial Crown corporation wholly owned by the Government of Canada that provides support to small and medium-sized enterprises (SMEs) and entrepreneurs.\u201d In addition, \u201c[t]he <\/span><\/span><\/span>BDC is required to operate as a complementary player in the market, offering financing, capital, and advisory services for Canadian entrepreneurs that fill out or complete offerings available from private sector providers.\u201d<\/span><\/span><\/span><\/p>\n Although the positive impact of the BDC was well documented,<\/span><\/span><\/span> many gaps and barriers were also <\/span>identified<\/span>. For example, a<\/span><\/span><\/span>s of 2022, the BDC had assets of $<\/span><\/span><\/span>47.8\u202fbillion committed to 95,000 SMEs, but only 54 co-o<\/span><\/span><\/span>perative<\/span><\/span><\/span>s were part of its client portfolio, and this number has <\/span><\/span><\/span>remained <\/span><\/span>low through the years. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Moreover, the report has an entire section which emphasizes that co-operatives (as well as social enterprises) are underserved, and that <\/span>additional<\/span> focus is needed to support them. This section also recognized that co-operatives, along with social enterprises, \u201coperate within unique contexts that require a clear understanding of their business models by lenders, as well as eligibility criteria that explicitly express support for and target this subset of businesses.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n CMC<\/span><\/span> strongly endorse<\/span><\/span>s<\/span><\/span><\/span> the <\/span><\/span>recommendation on page<\/span><\/span><\/span>\u202f<\/span><\/span><\/span>65 of the report<\/span><\/span><\/span><\/span><\/a>, that BDC should <\/span>consider<\/span> expanding and clarifying eligibility requirements t<\/span>o better meet the needs <\/span>of new<\/span> businesses, co-operatives, and social enterprises.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In fact, C<\/span><\/span>MC<\/span><\/span>\u00a0<\/span><\/span>along with <\/span><\/span><\/span>Buy Social Canada (BSC) and the Canadian Community Economic Development Network (<\/span>CCEDNet<\/span>)<\/span><\/span>,<\/span><\/span><\/span> have offered to <\/span>assist<\/span> the BDC in <\/span>accelerating action on<\/span> th<\/span>is<\/span> recommendation, <\/span>by <\/span>helping to improve reach and visibility, addressing <\/span>accessibility,<\/span> and<\/span> build<\/span>ing<\/span> strong partnerships to <\/span>fill <\/span>market gaps<\/span>.\u00a0<\/span><\/span>\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n BDC\u2019s a<\/span><\/span>ction<\/span> on this would be aligned with the <\/span><\/span>Minister of Small Business\u2019<\/span><\/span><\/span>s<\/span><\/span><\/span> mandate letter<\/span><\/span><\/span><\/span><\/a> to e<\/span>xpand <\/span>borrower eligibility in <\/span>the Canada Small Business Financing Program to include non-profit and charitable social enterprises<\/span>. <\/span>It would also<\/span> <\/span>be a timely complement to the <\/span>Social Finance Fund<\/span><\/span><\/span><\/a><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> which is available to co-operatives, non-profits, charities, and other social purpose organizations.<\/span><\/span><\/p>\n <\/span><\/span><\/p>\n [\/et_pb_text][et_pb_heading title=”The Path Forward” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_heading][et_pb_text _builder_version=”4.23.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n The Legislative Review Report confirmed<\/span> CMC\u2019s <\/span>understanding that the BDC does not currently have the expertise to serve the 25,000-strong social enterprise and co-operative sectors. And yet, c<\/span><\/span><\/span>o-operatives and social enterprises make up a vital part of Canada\u2019s small business landscape.<\/span><\/span><\/span><\/span><\/span><\/p>\n CMC and others a<\/span>re<\/span> <\/span>advocating for <\/span>the <\/span>BDC <\/span>to amend its<\/span> policies, procedures<\/span>,<\/span> and practices<\/span> <\/span>to include the implementation, measurement and reporting of specific programs to <\/span>increase the number of co-operatives and social enterprises in BDC\u2019s broader <\/span>capacity<\/span> building and lending portfolios<\/span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n CMC is<\/span><\/span><\/span> also seeking a commitment by the Government of Canada and the BDC to explore formal partnerships and an allocation of funds to better serve,<\/span><\/span> and ensure accessibility for <\/span><\/span><\/span>non-traditional business models. <\/span>This would include providing capacity-building tools, resources, consulting and financing for emerging co-operatives and social enterprise businesses, as <\/span>well as<\/span> providing internal training and support to BDC staff.<\/span>\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n [\/et_pb_text][et_pb_heading title=”Additional Information” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_heading][et_pb_text _builder_version=”4.23.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n If you are interested in <\/span><\/span><\/span>