Financial Support For Businesses - Clarington Board of Trade

Financial Support
    For Businesses
Initiative of:
  Durham Economic Task Force

February 26, 2021

Keith Cowley
                        Senior Commercial Account Manager
BDC                     Durham Region Business Centre
                        D 905-666-2966
BDC_ca                  M 289-927-0562

                        E keithb.cowley@bdc.ca
BDC
         Mat Dallaire
         Senior Commercial Account Manager
         Durham Region Business Centre
         D 905-666-2787

         M 705-772-3015

         E mathieu.dallaire@bdc.ca

                bdc.ca
                1-888-INFO-BDC

Numerous
Challenges             Extensive List of Relief Programs
Facing Business
Owners Through         Navigating What is Available?

Pandemic, and          Which Do I Qualify For?
Recovery
                       How Do I Access / Apply?
- Financial Aspect -
                       How Has Financing Changed?

                       What Other Tools Are Available?

                                                           3

COVID-19 Resources
Where Do I Find What Is Still Available and How To Access?

Invest Durham
 • Support programs from all levels of government (grants, loan programs, subsidies)
 • Support programs by industry sector
 • Guides and calculators for various programs
 https://www.investdurham.ca/covidresponse/government-support-and-funding/

BDC (Business Development Bank of Canada)
 • Support programs for Canadian Businesses
 • Fully comprehensive pdf available to download
 https://www.bdc.ca/en/special-support?special-initiative=covid19

                                                             BDC – A complementary partnership   4

COVID-19 Resources
Where Do I Find What Is Still Available and How To Access?

BDC
 • Business Planning Tools for Entrepreneurs
 • Articles & tools to help navigate unprecedented challenges facing management
    • i.e. How to Communicate / Connect with Customers to Get Them to Return
 https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-
 guides/covid19-planning-tools/covid19-planning-tools-toolkit

Government of Canada
 • Support programs for Individuals, Businesses, Self-Employed Businesses
 https://www.canada.ca/en/department-finance/economic-response-plan.html

Government of Ontario
 • Support grants on provincial level
 https://www.ontario.ca/page/businesses-get-help-covid-19-costs                                   5
                                                              BDC – A complementary partnership

COVID-19 Resources
Where Do I Find What Is Still Available and How To Access?

Various Chambers of Commerce & Boards of Trade
 • Exceptional Job of Keeping Their Members Informed

Municipalities (Regional & Each Community)
 • Ongoing webinars, communications

BACD
 • Durham’s Small Business Centre for training, networking, advisory, funding

                                                           BDC – A complementary partnership   6

BDC – How Do We Fit?
    Direct COVID-19 Response Measures

Loan payment                      BDC Capital Bridge
postponements                     Financing
                Working Capital                            BDC Advisory
                Loan (

BDC – A Great Resource . . .
Just One of Many Business Partners
Download 14-Page Summary of Programs with Website Links
https://www.bdc.ca/en/special-support?special-initiative=covid19

                                                          BDC – A complementary partnership   8

Relief Programs
CEBA – Canada Emergency Business Account
•   Up to $60,000 in interest-free loans to mitigate impact of pandemic on business
•   Application through primary financial institution
•   Initially $40,000 with additional $20,000 later made available
•   Expanded qualifying criteria beyond payroll to make more businesses eligible
•   Application Deadline March 31, 2021
•   $20,000 forgiven if $40,000 balance paid off by December 31,2022
•   835,000 approved for initial loan but only 460,000 for additional

    CEWS – Canada Emergency Wage Subsidy
    •   Subsidy covering portion of employees’ wages to help keep them on payroll
    •   Application through CRA My Business Account
    •   Application Deadline March 31, 2021

Federal Relief Programs
BCAP – Business Credit Availability Program
•   Working Capital Loan to cover operational costs (3 different loan offerings)
•   Application through primary financial institution
•   Business be financially stable with positive cash flow pre-COVID
•   Deadline is June 30. 2021

      HASCAP – Highly Affected Sectors Availability Program
      •    Working Capital Loan
           •   for businesses with revenue drop of 50% or more due to pandemic
      •    Application through primary financial institution
      •    4% interest rate with repayment up to 10 years, with 12-month interest
           only period to start
      •    Deadline is June 30. 2021

Federal Relief Programs

Ontario Small Business Support Grant
•   One-time grant of $10-20,000 required to close or restrict services due to
    Provincial Shutdown
•   Experienced minimum of 20% revenue decline April 2019 to April 2020

        MANY Other Programs
        •    Refer to resource links, accountant, financial institution as to what
             is best available for your business

Lending Environment
 - What is Different?

   Business Financing Still Available
    - More difficult if business not financially viable pre-COVID
   Increased Due Diligence on Business
    - Was business profitable pre-COVID?
    - Adherence to established protocol to keep customers & employees safe
    - Is management capable in new environment? Working with outside expertise to assist?
    - Are foundations of business solid with good basis for recovery, still competitive in new
     world now in?
   Credit Decisions Will Assess on Pre-COVID Results AND Forecast
    - Difficult to complete forecast with so many uncertainties . . . but essential and must be
     realistic in current environment
                                                                       BDC – A complementary partnership   12

Trends
affecting small
businesses

Retail e-Commerce Sales
•   Increased expectation by customers to search and buy on-line
•   Many still want in-person experience – are you able to provide both?

Working Remote Will Remain Popular (presently 83%)
•   Does your business have the technology to keep those employees efficient?
•   Are you able to effectively manage in that environment?

Investment in Technology Essential
•   40% of businesses surveyed will increase investment in technology in next 3 years
•   Needs range from survival to reducing costs to remaining competitive to expansion
•   Canada United Small Business Relief Fund – grant up to $5K to offset cost of digital technologies
    to move more business on-line
•   Technology will transform the manufacturing sector (computing to robotics to . . .)

Labour Shortages Projected
•   Are you able to automate any processes to reduce reliance on manual labour?

                                                                                                        14

BDC Advisory Services
                                                    HR management
Our network of specialized
                                                       HR infrastructure, performance
management consultants can                              management and workplace
help your client face challenges                        health and safety
in areas such as:
                                                    Operational efficiency
                                                       Lean training, process
Business planning & management                          improvement
   Strategic planning, financial and performance       and waste reduction, quality
    management and leadership development               management (HACCP, ISO)

Market development & online sales                   Digital Transformation
   Market planning, lead generation and               Technology roadmapping and
    sales strategy (online and offline)                 selection
   International expansion and export                 Business model refresh

Free business
advice on
bdc.ca

                16

Keith Cowley
                        Senior Commercial Account Manager
BDC                     Durham Region Business Centre
                        D 905-666-2966
BDC_ca                  M 289-927-0562

                        E keithb.cowley@bdc.ca
BDC
         Mat Dallaire
         Senior Commercial Account Manager
         Durham Region Business Centre
         D 905-666-2787

         M 705-772-3015

         E mathieu.dallaire@bdc.ca

                bdc.ca
                1-888-INFO-BDC