Small businesses affected by the decline in oil prices may get a bit of a boost from the Business Development Bank of Canada (BDC), which has announced a new $500 million funding envelope for those companies.
The funding is aimed at businesses that provide services to the oil and gas sector, rather than production or exploration companies.
The BDC will also offer support in an advisory role to small businesses through their network of consultants in the companies subset, BDC Advantage.
"We are optimistic for the prospects of our small business clients," said Michael Denham, BDC's president and CEO. "With time, support, and the tools we and others can provide we're optimistic that they'll succeed."
The BDC loans will aim to help companies fund their investments and also "give themselves a bit more time to improve their business and make sure they are able to thrive in today's environment," Denham added.
A key focus will be on diversification by helping small business expand their current client base or launch into new industries.
Many small businesses are focused on one or a few clients in the oil and gas sector and the decline in the price of oil has bred a substantial amount of concern.
"Small businesses and entrepreneurs (generally) aren't diversified," Denham said. "They a client of a couple of clients. We suspect they'll take advantage of this to diversify their client base and have more clients in the same industry or, even better, make moves into different industries."
