BDC Fact #2

Between 2005 and 2007, the Business Development Bank of Canada (“BDC”) grew its loan book by more than 17%, even though the Canadian economy only grew about 5.3% in aggregate over the same period (according to OECD figures).

If the BDC isn’t adding undue leverage to its existing client base, and it isn’t taking market share from the private sector (BDC’s governing legislation requires that they play a “complementary” role with other financial players and not a competitive one), how can the BDC grow its portfolio by more than three times the growth rate of the domestic economy??

MRM