Federal Government Support: https://www.canada.ca/en/department-finance/economic-response-plan.html

 

Provincial Government Support: https://www2.gov.bc.ca/gov/content/employment-business/covid-19-financial-supports#BCEBW

 

BDC Support for COVID-19 Crisis: https://www.bdc.ca/en/pages/special-support.aspx

 

Info from BDC:

BDC is available to assist companies that are in need for financial support to weather this storm. We are able to support companies that were already profitable (declaring a net income in the last year- end financial statements, at least) with short term financing to pay for expenses for the next few months

 

Here are a few details about the offer, that is subject to change:

• Maximum $2MM (amount will be based on how much is required to keep the business afloat for the next 6 months);

• Up to 6 months interest only payments

• Amortization: 24 month amortization (excluding 6 month initial principal postponement, so 30 month total term); 40% of the loan will be payable after the initial postponement with a 60% balloon payment at the end;

• Pricing: Floating base rate (currently 5.05%) minus 1.75% (total of 3.30%)

• 2nd rank security behind Senior Lender

• Security: Personal guarantee (not collateralized), General Security Agreement and/or potential real estate charge (case dependent);

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Here is a list of documents that we will need to collect for the Borrower and all related companies:

• Copy of Front and Back of the Driver’s License (all shareholders)

• Statement of Personal Affairs Form to be completed and signed by all the shareholders. Please use one form per shareholder.

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The following supporting documents may be required at the time of due diligence, please have them handy:

• BC Assessment of all properties owned personally by the shareholders

• Mortgage Balance Statements of all properties owned personally by the shareholders.

• Supporting bank statements for Savings, RRSP, etc.

• Financial Statements of all the companies owned personally by the shareholders.

• Ownership Chart (name of shareholders and % of ownership in the Borrower and other companies owned by the shareholders)

• Accountant prepared year-end financial statements for all companies for the past three years

• Comparative, inhouse interim financial statements as at Dec 31, 2019 vs. Dec 31, 2018 (Income Statement and Balance Sheet).

• Aged Accounts Receivable & Accounts Payable Listing at Dec 31, 2019 and year-end

• Month to month cash flow statement from April 1 – Dec 31, 2020.

• As part of the cashflow and forecasts, please answer the following questions:

  • A brief description of the company’s key issues (related to Covid-19 crisis).

• At what activity level do you anticipate operating at, over the next six months (i.e. full shut down or reduced capacity)?

• • What are the main impacts on your activities?

  • Complete or partial closure of your premises?

  • Specialized staff / employees required?

  • Access to premises: common workspace (number of employees) or remote work possible?

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• What are the key carrying costs for the next 6 months?

Examples:

• rent, insurance, electricity, salaries, financial fees, etc.

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• With a working capital loan and/or postponement (and support from other lenders) does this cover your cash needs for the next six months?

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Examples :​

• Cash and availability on your current bank line of credit?

• Do you have other sources of funding available?

• Personal ability to inject funds in addition to BDC loan?

 

• What are your agreements with key suppliers (and customers) on payment terms / support for the next six months?

 

Examples :

• Have you undertaken discussions / negotiations with third parties?

• Do you have line-of-sight to required raw materials for the next six months?

• Availability or access to raw material?

• If there is a franchisor involved have they suspended required payments?

 

• Confirmation about continued availability to Bank Line of Credit

• Certificate of Incorporation

• Share Register