BDC Fact #8

1 response

  1. jp says:

    Section 4(2)of the BDC Act
    “In carrying out its activities, the Bank must give particular consideration to the needs of small and medium-sized enterprises.”

    see the Act here:

    Unfortunately the meaning of “small” and “medium sized” is left undefined in the Act. The wording of the above section is vague too, being modified by “particular consideration”, as if the Bank might, in certain circumstances, be able to lend to large-sized enterprises.

    Though they could be viewed as operating within their mandate, given your other post about Industry Canada’s definition of a SME, it would seem that they are being inconsistent with government practice.

    Another example to add to your list:
    The Office of Small and Medium Enterprises uses the Industry Canada definition of SMEs as well. If they do, why doesn’t the BDC?

    Here is a link to different Canadian definitions of SMEs, everyone from the CBC to the CCRA. Enjoy!

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