Innovation, adaptability, service and commitment have been hallmarks of the Business Development Bank of Canada from the very outset - a legacy of those many pioneering men and women who have contributed to its half-century of heritage. Their collective vision and unique approach to helping small businesses have resulted in an organization unlike any other in the world.
Plans for the creation of the Bank date back to 1939 and to the onset of the World War II. With an eye to the future, the government recognized that it would need to stimulate economic growth and help create new jobs for Canadians once the war ended.
The pioneering years - 1944-1954
On September 1944, the Canadian Parliament proclaimed the creation of the Industrial Development Bank (IDB).
IDB was created as an arm of the Bank of Canada and the Governor of the Bank was also chief executive officer of the IDB.
IDB focused initially on " industrial enterprises" engaged, for the most part, in manufacturing.
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Charting a course for expansion - 1955-1964
From 1952 until the early 1960's, the IDB Act was amended several times to allow the institution to grant loans in nearly every activity sector. At the end of the second decade, the IDB had 22 branches across the country and was serving a wide variety of industry sectors.
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A decade of diversification - 1965-1974
By the 1970s, the IDB also realized that the challenges facing small business owners were not related exclusively to financing. Many entrepreneurs needed ongoing advice about how to effectively manage their businesses. The IDB addressed this need by becoming the first national organization to provide management services such as counselling, training and planning for small business owners.
The federal government recommended that the IDB's mandate be expanded. It would become, in effect, a one-stop shopping centre for small businesses. It was decided that a separate crown corporation owned directly by the federal government would succeed the IDB.
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A "first"new mandate - 1975-1984
The Federal Business Development Bank succeeded the IDB on October 2, 1975, and its first four years were banner ones. In 1983, an Investment Banking Division was created within FBDB, which was to focus on equity financing for small businesses. The revamped Bank began to decentralize authority for approving loans and opened more branch offices.
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Building partnership - 1985-1994
Innovation was key to the success the Bank enjoyed during its fifth decade, as it concentrated on finding new and better ways to address the needs of Canada's small and medium-sized businesses. Building working partnerships with business owners and other organizations which support entrepreneurship further enhanced FBDB's development.
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From 1995 to today
On July 13, 1995, the new Business Development Bank of Canada Act was adopted. This statute gives BDC a new broadened and dynamic public interest mandate under which the Bank pays special attention to exporting businesses and to businesses in the technology sector. In April 2002, the Bank's mandate was renewed for a period of ten years.
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