Large interview – Isabelle Hudon, CEO of BDC | After the torpor, the recovery begins

If the first three months of the year were marked by a strong reduction in BDC financing activities due to the uncertainty generated by the entry into office of Donald Trump and his pricing threats, the Bank of Canadian Entrepreneurs found its momentum in July, observes its CEO, Isabelle Hudon, who begins this week a fifth year at the head of the federal institution.

Posted at 6:00 a.m.

Entrance to the Pandemic post. Nevertheless, in August 2021, Isabelle Hudon noted certain similarities between the period of strong uncertainty that we knew at the time and that which companies are currently going through.

“The pandemic has helped us to better cross the troubled period that we know. Moreover, today because we know that it is possible to continue to go before even if everything is stopped. Meanwhile, From February. Nevertheless, I told our employees and our customers that we had to learn to live with uncertainty because it will last another 1000 days, “says the CEO of the Development Bank of Canada (BDC).

From the beginning of March. Meanwhile, knowing that the pricing threat came up there, the BDC set up the program Pivot to propel yourselfwith an envelope of 500 million, to help companies develop new markets, new products and new activity sectors.

“It is a program that has been very successful. Similarly, what is interesting is that SMEs have chosen to use advice services more than those of large interview – isabelle hudon, financing. Moreover, During the slowdown, they preferred to think and develop a strategy to ensure their future growth, ”underlines Isabelle Hudon. In addition. Furthermore, the BDC has set up a special program for SMEs in the steel sector which are affected by customs duties of 50 %.

For 15 years. Meanwhile, the BDC has offered advisory services to SMEs that have not had the reflex to consult a large office, while the BDC itself ensures the management of operations while using external resources.

Otherwise, BDC’s financial activities are summed up in several large figures. The institution that generates its own income achieves 9 billion funding per year per year. for 600 million investments in risk capital.

The company today has a 57 billion portfolio, including 5 billion in risk capital. The BDC had 65,000 client large interview – isabelle hudon, companies in 2021, when Isabelle Hudon undertook its mandate, and today count 108,000.

“We had 65,000 customers, it was a lot, but I told our teams that we could do better still. There are 1.1 million SMEs in Canada and we have a role to play to support them. It is certain that we cannot join them all. but we have identified our target market at 400,000 companies, so we reach today 25 % of our target, ”explains the CEO.

Large interview – isabelle hudon. – Large interview – isabelle hudon,

A higher risk profile

BDC does not compete with financial institutions, but assumes an additional role by providing companies with development capital. “We play where others do not play until they join us,” explains Isabelle Hudon.

This is why BDC has set up specific funds. including large interview – isabelle hudon, the platform Excellesendowed with 500 million risk capital, which supports women entrepreneurs since 2023.

“Women entrepreneurs collect only 2 % of the risk capital available while they represent 17 to 19 % of business owners. »»

BDC has a higher risk profile. is there to support SMEs in economic sectors that are strategic for the country, which is particularly the case in the security and defense sector, which has been defined as a priority for the Canadian government.

It is with this in mind that the CEO of BDC will participate in the next Fair Defense and Security International Equipment which will take place in London next month to establish a first link with companies in the sector.

CAP on business transfers

BDC will also take an interest. in the coming years in the phenomenon of business transfer in Canada.

“We are going to enter this sector in a more organized way. 700,000 large interview – isabelle hudon, companies will either change hands or that will close over the next five years. We want to be there for our SMEs to continue their growth, ”insists Isabelle Hudon.

BDC is often the only lending institution of an SME. but the company is becoming more and more collaborative funding with institutions such as Desjardins, the Royal Bank, TD and certain credit cooperatives where it acts as a support by ensuring a loan guarantee.

BDC was founded 81 years ago and now has 3,000 employees in the country, including 1,200 in its large interview – isabelle hudon, Montreal headquarters. The institution has a hundred offices throughout Canada. but it is in Quebec that its penetration is the most important, followed by the provinces of the Atlantic, British Columbia, the meadows and finally Ontario.

“The presence of the head office in Montreal is not unrelated to our good penetration of the Quebec market. There. we have to work on Ontario, where several companies in the automotive sector have called on our services, ”observes Isabelle Hudon.