The Bank of Montreal (BMO) has announced it will raise its credit available to small and medium-sized businesses by C$10 billion ($10 billion) over the next three years, representing a 26 percent increase over its current C$38 billion book of loans to the segment (Rueters).
"We are seeking to boost lending in every region of the country by actively reaching out to entrepreneurs, including women, and aboriginal entrepreneurs. We are also connecting with younger entrepreneurs..." , said Frank Techar, president and CEO of personal and commercial banking for BMO, in a release.
"We're sending a signal on all fronts that this is a great time for Canadian businesses to be investing for the future."
Before you start cheering and throwing your cap into the air, remember that this doesn't mean that BMO (or any financial institution) is going to be lowering their standards for borrowers; they're not going to be any more open to risky business ideas than they've ever been. (See How to Get a Small Business Loan for more on what lenders expect from small business borrowers.)
And in the Globe and Mail, Grant Robertson more of a marketing ploy than anything else, as Canadian small business borrowing has been slow to recover since 2009.
The BMO, though, is taking an "if we build it they will come," mentality and I can only see this as a good news story as small businesses that do want to start and grow will have more resources available.
More on Finding Small Business Funding
- 10 Things You Need to Know About Small Business Funding in Canada
- How to Get a Small Business Loan
- The Canada Small Business Financing Program
- 10 Sources of Canadian Small Business Loans
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