Business Development Bank of Canada

{{Infobox company

| name = {{nowrap|Business Development Bank of Canada}}

| logo = Business_Development_Bank_of_Canada_Logo.svg

| key_people = {{unbulleted list|Isabelle Hudon (President and CEO)|Mike Pedersen (Chair)}}

| industry = Development banking Consulting

| revenue =

| net_income =

| assets = $30.6 billion (2019){{cite web |url=https://www.bdc.ca/en/documents/annualreport/bdc-annual-report-2019.pdf |title=2019 Annual Report |website=www.bdc.ca |access-date=2019-08-07}}{{rp|30}}

| num_employees = 2,300 (2019)

| foundation = 1944 in Montreal, Quebec, Canada

| hq_location = Place Ville Marie
Montreal, Quebec, Canada

| homepage = [https://www.bdc.ca/ www.bdc.ca]

}}

The Business Development Bank of Canada (BDC; {{langx|fr|Banque de développement du Canada}}) is a Crown corporation and national development bank wholly owned by the Government of Canada, mandated to help create and develop Canadian businesses through financing, growth and transition capital, venture capital and advisory services, with a focus on small and medium-sized enterprises.{{cite web |url=http://laws-lois.justice.gc.ca/eng/acts/B-9.9/FullText.html |title=Business Development Bank of Canada Act |website=Justice Laws Website |access-date=2012-05-04}}

Founded in 1944,{{cite web|url=https://www.bdc.ca/en/about/who-we-are/pages/history.aspx|title=History of the Business Development Bank of Canada|website=BDC|access-date=September 2, 2022}} its corporate headquarters is located in Montreal and it has more than 123 business centres working with 60,000 clients.[https://www.bdc.ca/EN/Documents/annualreport/bdc-annual-report-2017.pdf BDC Annual Report, 2017] Retrieved 2018-01-23 BDC's debt obligations, secured by the Government of Canada, are issued to public and private sector institutions.

History

The bank was established by an Act of Parliament[http://www.tbs-sct.gc.ca/pas-srp/remarks-observations_e.asp?id=34355 Treasury Board of Canada Secretariat] Retrieved 2012-05-04 as the Industrial Development Bank (IDB) in September 1944.{{cite journal |last1=Curtis |first1=C.A. |title=Evolution of Canadian Banking |journal=The Annals of the American Academy of Political and Social Science |date=September 1947 |volume=253 |issue=1 |pages=115–124 |doi=10.1177/000271624725300117 |url=https://journals.sagepub.com/doi/pdf/10.1177/000271624725300117 |access-date=14 February 2025}} 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 peacetime operations after World War II. IDB was one of the first and largest development banks in the world.

The Industrial Development Bank 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 in ten planes in Canada was financed by IDB. Later, the Industrial Development Bank Act was amended twice more to allow the bank to lend to companies in almost all industries.

By 1964, 20 years after its foundation, IDB had 22 branches across Canada, covering main cities such as Halifax, Montreal, Toronto, Winnipeg, Calgary and Vancouver, including 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.{{cite web |url=http://www.bdc.ca/EN/about/overview/history/Pages/diversification_years.aspx |title=1965 - 1974 A decade of diversification |website=BDC |access-date=2012-05-04 |archive-url=https://web.archive.org/web/20110401134056/http://www.bdc.ca/EN/about/overview/history/Pages/diversification_years.aspx |archive-date=2011-04-01 |url-status=dead}}

In 1975, its name was 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.{{cite web |url=https://www.bdc.ca/en/documents/about/history/LF_ENG_BD1604_eBook_histoireBDC_INTERACTIF.PDF |title=History of the Business Development Bank of Canada - The FBDB period (1975-1995) |page=32 |first=Donald |last=Layne |access-date=2018-01-23 |archive-url=https://web.archive.org/web/20180124071253/https://www.bdc.ca/en/documents/about/history/LF_ENG_BD1604_eBook_histoireBDC_INTERACTIF.PDF |archive-date=2018-01-24 |url-status=dead}}

In 1995, the Business Development Bank of Canada Act was passed, leading to a new name and mission for the bank. It mandated BDC to promote entrepreneurship, focusing on the needs of small and medium-sized enterprises (SMEs), to fill gaps in the market and maximize financing alternatives for businesses by offering services that were complementary to those available from other financial institutions.

BDC is financially self-sustaining.{{cite web |url=https://www.bdc.ca/en/about/what-we-do/faq |title=General FAQ |website=BDC |access-date=September 3, 2022 |quote=So you don't give money? Shouldn't a crown corporation be helping Canadians? - BDC has been supporting Canadian businesses since 1944. Our innovative financing and advisory services are specifically designed to respond to the needs of today's Canadian businesses while allowing the bank to be financially sustainable.}} Since 1998, it has been profitable and paid a total of more than $746 million in dividends to its sole shareholder, the Government of Canada.[http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2015.pdf BDC 2015 Annual Report] p. 31.

[https://www.bdc.ca/en/documents/annualreport/bdc-annual-report-2019.pdf BDC 2019 Annual Report 2019] p.35 On June 8, 2022, BDC’s Board of Director authorized the repurchase of $5.0 billion of its common shares.

Every ten years, the Minister of Industry must conduct a review of the provisions and operations of the BDC Act. The last legislative review was completed in December 2014.{{cite web |url=https://www.bdc.ca/en/about/corporate-governance/laws-reports |title=Laws and reports |access-date=September 3, 2022}}

In April 2021, the Bank announced the appointment of Isabelle Hudon as President and Chief Executive Officer as of August of the same year, at the end of the term of current CEO Michael Denham.{{Cite web|title=Nomination d'une première femme à la tête de la BDC: Isabelle Hudon|url=https://www.lesaffaires.com/secteurs-d-activite/general/nomination-d-une-premiere-femme-a-la-tete-de-la-bdc-isabelle-hudon/624630|url-status=live|archive-url=https://web.archive.org/web/20210430132707/https://www.lesaffaires.com/secteurs-d-activite/general/nomination-d-une-premiere-femme-a-la-tete-de-la-bdc-isabelle-hudon/624630 |archive-date=2021-04-30 }} In 2023, current and former staff raised concerns about spending at the bank, including expenditure on consulting services from McKinsey & Company and air transport for a private chauffeur.{{Cite news |last=Leblac |first=Daniel |date=23 Jan 2023 |title=Crown corporation faces staff backlash over McKinsey contract, spending decisions |work=CBC |url=https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914}}

Services

File:BDCLogo-3114.jpg

File:MacNabStreetBDC.JPG]]

BDC offers loans and advisory services with a focus on small and medium-sized companies. It reports to Parliament through the Minister of Innovation, Science and Economic Development.{{cite web |url=http://www.appointments.gc.ca/prflOrg.asp?OrgID=FBD&lang=eng |title=Organization Profile - Business Development Bank of Canada |website=Governor in Council Appointments |archive-url=https://web.archive.org/web/20131120092017/http://www.appointments.gc.ca/prflOrg.asp?OrgID=FBD&lang=eng |archive-date=2013-11-20 |url-status=dead}} BDC Capital, a subsidiary of BDC, offers specialized financing, including venture capital, equity as well as growth and business transition capital.{{cite web |url=https://www.bdc.ca/en/about |title=About us |website=BDC |access-date=September 3, 2022}}

BDC's Venture Capital arm makes strategic investments in Canadian companies through its Energy/Cleantech Fund, Healthcare Fund and IT Fund. Notable investments include GradeSlam, Q1 Labs, Radian6, Canopy Labs, D-Wave Systems, CoolIT Systems,{{cite web | url=https://www.hpcwire.com/off-the-wire/coolit-receives-growth-investment-to-further-fund-innovation-and-international-expansion/ | title=CoolIT Receives Growth Investment to Further Fund Innovation and International Expansion |work=HPCwire |date=March 4, 2021 |access-date=September 3, 2022}}{{cite web | url=https://privatecapitaljournal.com/coolit-secures-growth-investment-from-bdc-and-nvent/ | title=CoolIT secures growth investment from BDC and nVent - Private Capital Journal |work=CPE News |date=March 4, 2021 |access-date=September 3, 2022}} Protiva Biotherapeutics,{{Cite web |date=2003-05-29 |title=Protiva Biotherapeutics completes private financing round |url=https://scrip.pharmaintelligence.informa.com/Deals/200130380 |url-status=live |archive-url=https://archive.today/20230904181402/https://scrip.pharmaintelligence.informa.com/Deals/200130380 |archive-date=2023-09-04 |access-date=2023-09-04 |website=Citeline}} Sanctuary AI{{cite web |title=Sanctuary AI gets new funding to make robots more human |url=https://thetechfactor.ca/sanctuary-ai-gets-new-funding-to-make-robots-more-human/ |website=The Tech Factor |date=3 July 2024 |access-date=7 July 2024}} and Klipfolio Dashboard.{{cite web |url=https://www.bdc.ca/en/bdc-capital/venture-capital/funds/it-venture-fund |title=IT Venture Fund |website=BDC |access-date=September 3, 2022}}{{cite web |url=https://www.bdc.ca/en/bdc-capital/venture-capital/funds/energy-cleantech-venture-fund |title=Industrial, Clean and Energy Technology (ICE) Venture Fund |website=BDC |access-date=September 3, 2022}}

BDC 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 advisory services division.{{cite web |url=https://www.bdc.ca/en/about/what-we-do |title=What we do |website=BDC |access-date=September 3, 2022}}

Launched by FBDB in 1979, Small Business Week[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 Canadian Intellectual Property Office] is a yearly celebration of entrepreneurs and their contribution to Canadian society. It became a nationwide event in 1981.{{cite web |url=http://www.bdc.ca/EN/Documents/SBW/BDC_SBW_Fiche_Info_EN.pdf |title=Fact Sheet - Small Business Week® |website=BDC |access-date=2012-05-04 |archive-url=https://web.archive.org/web/20111226052657/http://www.bdc.ca/EN/Documents/SBW/BDC_SBW_Fiche_Info_EN.pdf |archive-date=2011-12-26 |url-status=dead}}

Tax Exemption

BDC is exempt from taxes imposed by the Income Tax Act.{{Cite web |last=Branch |first=Legislative Services |date=2020-03-25 |title=Consolidated federal laws of Canada, Business Development Bank of Canada Act |url=https://laws-lois.justice.gc.ca/eng/acts/b-9.9/page-3.html |access-date=2023-02-09 |website=laws-lois.justice.gc.ca}}

Recognition

BDC was named among Canada's Top 100 employers[http://www.canadastop100.com/national/ Canada's Top 100 Employers]. Retrieved 2012-05-04 from 2007 to 2018.

BDC Capital won multiple Deal of the Year Awards from the Canadian Venture Capital and Private Equity Association in the venture capital category. It won in 2011, for its investment in Radian6 Technologies Inc.;{{cite web |url=http://www.cvca.ca/files/News/CVCA_2011_DOYA_VC_Release_FINAL.pdf |title=Summerhill, Brightspark and BDC Winners of CVCA's 2011 Venture Capital 'Deal of the Year' Award |work=Canada's Venture Capital & Private Equity Association |date=September 21, 2011 |archive-url=https://web.archive.org/web/20120818143235/http://cvca.ca/files/News/CVCA_2011_DOYA_VC_Release_FINAL.pdf |archive-date=2012-08-18 |url-status=dead}} in 2012, for its investment in Q1 Labs Inc.;{{cite web |url=https://www.bdc.ca/en/about/mediaroom/news_releases/pages/bdc_venture_capital_secures_deal.aspx |title=BDC Venture Capital secures the CVCA's Deal of the Year Award for the second year in a row |website=BDC |date=September 20, 2012 |access-date=2018-01-23 |archive-url=https://web.archive.org/web/20180124135724/https://www.bdc.ca/en/about/mediaroom/news_releases/pages/bdc_venture_capital_secures_deal.aspx |archive-date=2018-01-24 |url-status=dead}} and again in 2014, for its investment in Layer 7 Technologies.{{cite web |url=https://betakit.com/bdc-and-growthworks-win-cvcas-deal-of-the-year-for-layer7-technologies/ |title=BDC and GrowthWorks Win CVCA's "Deal of The Year" For Layer7 Technologies |website=Betakit |date=May 22, 2014 |access-date=2018-01-23}}