Canadian cannabis companies affected by the consequences of the coronavirus pandemic will be eligible for federal emergency assistance. The Business Development Bank of Canada (BDC), which is owned by the Government of Canada, has made available a one-time $40 billion credit line, open to all businesses.
Any legal business is eligible to be part of the program, which I think was a concern for some industry groups, said Michael Denham, CEO of the merchant bank. “This has been clarified and we will officially announce it on Monday.
Although it supports higher-risk loans than banks, the state-owned bank aims to be commercially viable. Businesses needing help will first have to approach their bank and prove that they could have handled a loan before the coronavirus hits. The BDC has also lowered its interest rates and waived its fees.
All of these changes are designed to make us as easy and accessible as possible,” said Denham. We’re doing what we need to do. »
The Impact of Coronavirus on the Canadian Cannabis Industry
The Canadian cannabis industry was already struggling before the pandemic. While online sales continue, in-store sales are not always permitted.
Ontario, Canada’s most populous province, initially regarded cannabis shops as essential businesses. However, they were excluded last week, retaining only online sales. Same-day guaranteed home delivery has also been discontinued due to a massive influx of orders. The order to close stores came into effect on Saturday evening. However, the province issued an emergency notice on Tuesday to allow cannabis stores to sell take-out cannabis in front of their stores.
In Quebec, the SQDC is continuing in-store sales and recommends that online sales be preferred if possible. Like supermarkets, the number of customers is limited in-store and employees are protected by masks and Plexiglas windows.