• This program is currently closed.

Amount:

$ 60,000,000.00

Type of Program:

Loan


Description:

The Mid-Market Financing Program provides loans ranging between $12.5 million and $60 million for medium-sized businesses particularly impacted by the COVID-19 pandemic and/or the recent decline in oil and gas prices.

Comments on Funding:

Funding is between $12.5 million and $60 million, out of which 90% of the loan amount comes from BDC participation and 10% from the primary lender or lending syndicate.

Loan terms and conditions:

  1. 1
    Spanning on four years, after which principal is to be repaid as a balloon payment. 
  2. 2
    Interest payments for the first 12 months will be capitalized and due at maturity loan period: four years.
  3. 3
    Interest payments will be made monthly after the maturity of the loan.
  4. 4
    This loan is priced higher than the business’ senior operating and term facilities, along with annual increases to interest rate.
  5. 5
    Upfront fees of 1.25%, with half payable upon acceptance of term sheet and the other half payable at close, with additional fees paid at each anniversary date on outstanding amounts.
  6. 6
    Restrictions include but are not limited to no shareholder withdrawals, increase in management compensation, share buybacks and no increase in dividends.
  7. 7
     The loan will be secured by the business’ assets and its subsidiaries as granted in favour of the Senior Lender.

When It Ends:

Closed

Deadline:

December 31, 2021

Eligibility:

Applicant must:

  • be medium-sized businesses with annual revenues in excess of about $100 million to $500 million, from any sector or industry;
  • be businesses that have been financially stable and viable prior to the current economic environment;
  • be businesses that were directly or indirectly impacted by COVID‐19 and/or the recent decline in oil and gas prices;
  • have its credit needs exceeding what is already available through the co-lending program and other measures.

Applications Steps:

1

Applicants must contact their primary financial institution or lending syndicate to see if this program is the right fit for their business and to apply.
The primary lender will then communicate with BDC regarding next steps.
This loan is subject to underwriting and approval by BDC and the primary lender(s) or lending syndicate(s).

Other Things to Note:

The Mid-Market Financing Program was available until or before December 31, 2021 (ended).

About the author 

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe's background and how he can help your business.

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