Jean-Rene Halde, president of the Business Development Bank of Canada.
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The Business Development Bank of Canada reported a stronger profit and a weaker flow of financing in fiscal 2011 -- a signal of improving financial health of the small businesses to which it provides support.
In its annual report for the fiscal year ended March 31, BDC reported net income of $346.7-million and said it provided $3.3-billion in financing to clients.
That figure, however, was down from the $4.4-billion it lent in 2010, the highest level of lending to entrepreneurs in BDC's history as a result of the credit crunch.
Easing credit conditions, it said, brought the dollar volume of BDC's lending in fiscal 2011 back to pre-recession levels. It lent $2.9-billion in 2009.
"Private-sector financial institutions now have more liquidity available for business financing, which is good news for Canadian entrepreneurs," said BDC president and chief executive officer Jean-René Halde in a release.
"This also means that BDC did fewer deals this year than last year, when the economic crisis was at its most severe. This is to be expected, given our complementary mode of operation."
BDC said that "close to half" of its profitability this year came as a result of reducing the amount of money it set aside for potential losses, "which means that our clients' financial positions have improved since last year," Mr. Halde also said. "We are delighted with what our profitability tells us about the rising financial health of our clients."
BDC noted that it also authorized $95.3-million in venture-capital investments, $150-million in asset-backed securities and started 2,300 "consulting mandates."
BDC has more than 100 business centres across the country, offering financig, venture capital, consulting and other services to 29,000 small and medium-sized companies.
Jack Layton's commitment to small business
With NDP leader Jack Layton's death today, here's a small reminder of what he had in mind for small businesses during the most recent election campaign.
Among his platform promises, he pledged to cut the small-business tax rate to 9 per cent from 11 per cent. He also proposed a job creation tax credit for employers of up to $4,500 for each hire. As well, he said his plans would extend the accelerated capital costs allowance for four years and return the corporate income tax rate to 2008 levels. (For a quick recollection comparison of the two leading parties' pledges during the campaign, click here.) It remains to be seen how the party under another leader will view Canada's small business community.
Montreal startup raises $8-million
Self-described Montreal-based "stealth startup" Hopper has raised $8-million in funding from early-stage investors Atlas Venture and Brightspark Ventures.
The company, founded in 2007 by a team of former Expedia employees, is developing a search engine for trip-planning...what it calls a website for "consumer travel discovery." Its idea is to let users find destinations and products using keywords. For instance, it says, a search of "best beaches in Europe" would instantly display a list of European destinations ranked by beach quality, with best flights, hotels and packages.
The new funding adds to the $2-million that Hopper raised in 2008. For a more detailed account and links, check out a report by TechCrunch.
EDITOR'S PICKS FROM REPORT ON SMALL BUSINESS
Put that website down, you don't know where it's been!
As Mom always said, if you hang around with the wrong crowd, you'll get a bad reputation. Now that theory is being used to detect unfriendly software.
FROM THE ROSB ARCHIVES
Does Expedia experience provide inspiration?
Speaking of former Expedia employees striking out on their own, back in January, we reported on RealSelf.com, a social-media website offering first-hand reviews and commentary by people who've had or are thinking about cosmetic treatment procedures. The site's founder, Tom Seery, said his inspiration came from his wife's experience researching a laser treatment, and his own experience working at Expedia, where, according to the story, he "learned about the power of consumer contributions to websites by watching the success of TripAdvisor.com, which Expedia acquired.
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