Business Development Bank of Canada
|Type||Crown corporation, financial services|
|Industry||Financial services, consulting, venture capital|
|Founded||Montreal, Quebec, Canada, 1944|
|Key people||Jean-René Halde (President and CEO), Thomas R. Spencer (Acting Chairman)|
|Total assets||$18.2 billion (F2013)|
The Business Development Bank of Canada (BDC) (French: Banque de Développement du Canada) is a federal Crown corporation wholly owned by the Government of Canada. Its mandate is to help create and develop Canadian businesses through financing, subordinate financing, venture capital and consulting services, with a focus on small and medium-sized enterprises.
The bank was established by an Act of Parliament as the Industrial Development Bank (IDB) in September 1944. IDB was initially an arm of the Bank of Canada, and the Governor of the Bank was also Chief Executive Officer of the IDB. During its first years, the bank’s main role was to help small “industrial enterprises” convert from military production to peace-time operations after the Second World War.
IDB was one of the first and largest development banks in the world.
The IDB Act was first amended in 1952 to allow the bank to offer financing to companies in the commercial airlines industry. By the mid-1950s, one out of every 10 planes in Canada was financed by IDB. Later, IDB’s Act was amended two more times to allow the bank to lend to companies in almost all industries.
By 1964, twenty years after its foundation, IDB had 22 branches across Canada, covering main cities such as Halifax, Montreal, Toronto, Winnipeg, Calgary and Vancouver and also had operations in relatively rural areas. In the mid-1970s, the bank added consulting and training to its financial offerings to help entrepreneurs better manage their businesses.
In 1975, the name of the bank changed to Federal Business Development Bank (FBDB) and its venture capital operations were started. At the time, the bank was known as “a lender of last resort”—supporting businesses in difficulty.
In 1995, Parliament passed the Business Development Bank of Canada Act, leading to a new name and mission for the bank. The Act mandates BDC to promote entrepreneurship, with a special focus on the needs of small and medium-sized enterprises (SMEs) and to fill the market gaps and maximize financing alternatives for businesses by offering services that were complementary to those available from other financial institutions.
BDC is financially self-sustaining. Since 1997, it has been profitable and paid a total of $303 million in dividends to its sole shareholder, the Government of Canada. Every ten years, the Minister of Industry must conduct a review of the provisions and operations of the BDC Act. BDC is currently undergoing a regular legislative review that started in the fall of 2010.
BDC provides financing, subordinate financing, consulting and venture capital with a focus on small and medium-sized companies. It reports to Parliament through the Minister of Industry.
The bank is a complementary lender, offering commercial loans and investments that fill out or complete services available from private-sector financial institutions. It also provides advice to businesses through its consulting division.
Current members of the Board are: Thomas R. Spencer (Acting Chairman), Jean-René Halde (President and Chief Executive Officer), Eric Boyko, Michael Calyniuk, Sue Fawcett, Shahir Guindi, Brian Hayward, Jean Martel, Prashant Pathak, Rick Perkins and Rosemary Zigrossi.
Events and competitions organized by BDC
Small Business Week (SBW) is an annual celebration of entrepreneurs and their contribution to Canadian society. A wide range of activities is held across the country during the third week of October. Small Business week was launched by BDC in 1979 and became a nationwide event in 1981.
The BDC Young Entrepreneur Award is a competition open to young Canadian entrepreneurs aged 18 to 35 that BDC has organized since 1988. In 2012, for the first time, a young entrepreneur was awarded a top prize of $100,000 to implement an innovation project in their business.
E-Spirit is a national Aboriginal youth business plan competition sponsored by BDC. The goal of E-Spirit is to encourage Aboriginal youth in grades 10 to 12 to learn about entrepreneurship through the use of the Internet.
BDC has been named one of Canada’s Top 100 employers for 7 years in a row (2007-2013).
In 2011, BDC Venture Capital won the CVCA “Deal of the Year Award” for the venture capital category, along with Brightspark Ventures and Summerhill Venture Partners, for its investment in Radian6 Technologies Inc.
- Business Development Bank of Canada Official Website
- Canadian Department of Justice - Business Development Bank of Canada Act text
- Industry Canada
- Treasury Board of Canada Secretariat
- Government of Canada
- Canada’s Top 100 Employers
- Annual Report 2013, p. 60 http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2013.pdf
- Canada's Department Of Justice. http://laws-lois.justice.gc.ca/eng/acts/B-9.9/FullText.html. Retrieved 2012-05-04
- Industry Canada. http://www.ic.gc.ca/eic/site/sbrp-rppe.nsf/eng/rd02522.html. Retrieved 2012-06-06
- Treasury Board of Canada Secretariat. http://www.tbs-sct.gc.ca/pas-srp/remarks-observations_e.asp?id=34355. Retrieved 2012-05-04
- Official website. http://www.bdc.ca/EN/about/overview/history/Pages/pioneer_years.aspx. Retrieved 2012-05-04
- Official website. http://www.bdc.ca/EN/about/overview/history/Pages/pioneer_years.aspx Retrieved 2012-05-04
- Official website. http://www.bdc.ca/EN/about/overview/history/Pages/diversification_years.aspx. Retrieved 2012-05-04
- Canada’s Department of Justice. http://laws-lois.justice.gc.ca/eng/acts/B-9.9/FullText.html. Retrieved 2012-05-04
- Official website. http://www.bdc.ca/en/about/faq/Pages/general.aspx Retrieved 2012-06-06
- BDC 2013 Annual Report, p. 62. http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2013.pdf
- Official website. Retrieved 2012-06-07 http://www.bdc.ca/EN/about/legislative_review/Pages/default.aspx
- Government of Canada. http://www.appointments.gc.ca/prflOrg.asp?OrgID=FBD&lang=eng. Retrieved 2012-06-06
- Official website. http://www.bdc.ca/EN/about/overview/Pages/what_we_do.aspx. Retrieved 2012-05-04
- Official website. http://www.bdc.ca/EN/about/corporate_governance/board_of_directors/Pages/default.aspx. Retrieved 2012-05-04
- Canadian Intellectual Property Office. http://www.ic.gc.ca/app/opic-cipo/trdmrks/srch/vwTrdmrk.do;jsessionid=0001FWVNs03YvSo3G1oQ7l97_Vu:-U0PF90?lang=eng&status=OK&fileNumber=0902337&extension=0&startingDocumentIndexOnPage=1
- Official website. Retrieved 2012-05-04 http://www.bdc.ca/EN/Documents/SBW/BDC_SBW_Fiche_Info_EN.pdf
- Official website. http://www.bdc.ca/EN/about/mediaroom/news_releases/Pages/yea_major_prize.aspx Retrieved 2012-05-04
- Official website. Retrieved 2012-05-04 http://www.bdc.ca/EN/i_am/aboriginal_entrepreneur/bdc_initiatives/Pages/bdc_initiative_espirit.aspx
- Canada’s Top 100 Employers. Retrieved 2012-05-04 http://www.canadastop100.com/national/
- Canada’s Venture Capital & Private Equity Association. http://www.cvca.ca/files/News/CVCA_2011_DOYA_VC_Release_FINAL.pdf