BDC commits $500M to help struggling energy firms

Small and medium-sizedbusinesses impacted by the crash in oil prices will have access to a share of$500 million infinancing announced today by the Business Development Bank of Canada.

"We want to ensure that the manywell-runcompanies that enjoyed success before the downturn continue to receive the financing and advice they require,"MichaelDenham, president and CEO of BDC, said in a release.

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BDC is a federal crown corporationwith a mandate to fosterCanadian businesses, particularlysmall and medium-sized enterprises.

Denhamsaid BDCwill also provide "advisory solutions" to companies as they adjust their operations in the wake of the economic downturn.

'Critical time'

Senior vice president of BDC MichaelSelcisays it's a critical time for many companies.

"There are some companies that won't make it and some will emerge stronger," he said.

"So it's very, very important, we believe, that entrepreneurs sit down look at their business plans, theirfinancialsand their projections and make sure that they are ready and able to survive."

Chamberapplauds increase

The Calgary Chamber of Commerce applauds the increase and urges energy companies to seriously consider innovating and exploring new markets.

Adam Legge, the president of the chamber,says the prolonged downturn proves that it's time to stop talking about diversification and forcompanies to start doing it.

"The reality is that we have to put some effort and muscle into doing it, so we need to be very purposeful inhow we're looking into new markets for our companies," he said.