Biannual Survey of Suppliers of Business Financing

Authorization level of client - the maximum amount of money that a client is permitted to borrow from a supplier. This may or may not be the amount that a client actually borrowed.

Business clients - clients who are engaged in the production of goods and/or services for gain or for profit: include sole proprietorships, partnerships and corporations.

Business credit - includes all term loans, mortgages, credit cards and lines of credit provided to businesses in Canada.

Entreprise - the parent unit that independently directs and controls the allocation of resources and economic activities relating to operations in Canada; and for which accounting records provide a complete set of financial statements.

Gross New Loans - the total amount of new loans disbursed to businesses over the period. (Gross new loans can be distinguished from "Net New Loans" in that gross new loans are calculated before making deductions for loan repayments, prepayments, or loan defaults). Gross new loans should represent the amount of new money disbursed to businesses.

Number of credit accounts in arrears - the total number of credit accounts that had principle or interest overdue by greater than 90 days.

Number of disbursements - the total number of accounts that were given funds during the last 6 month period, for a particular instrument type. This includes disbursements for both new and existing accounts.

Number of new authorizations - for operating credit instruments, the total number of accounts that were given either a new authorization or an increase to an existing authorization level. Example: when a lender gives a business a new credit card and increases its existing line of credit, the number of new authorizations has increased by 2, and should be reported as such.

Operating instruments - includes credit cards and lines of credit. Generally there is no fixed repayment schedule and they are used for the day-to-day operations of a business.

Term instruments - includes term loans and mortgage loans. Generally has a fixed repayment schedule, greater than one year in duration.

Number of business credit accounts - the number of business accounts with an amount outstanding during the current period.

Value of credit in arrears - the total dollar value of all credit accounts that had principle or interest overdue by greater than 90 days.

Value of credit outstanding - the principal amount of money that all business accounts have actually borrowed but not yet paid back.

Value of disbursements - the total dollar value of all funds supplied to business accounts for a particular instrument type.

A. Coverage - Question identifier:1.

This survey collects data on a biannual basis for the period of January 1st to June 30th or for the period of July 1st to December 31st. In reference to the periods above, provide the start and end date of the most recent six months preceding receipt of this questionnaire.

• 01: YYYY/MM/DD to YYYY/MM/DD

B. Forecasted to Lend - Question identifier:2.

Approximately how much, in total ('000), was forecasted to lend to businesses for the 6 months entered in Section A?

Include:
- term loans and mortgage loans
- lines of credit and credit cards
- umbrella credit
- letters of credit
- credit provided by a subsidiary or an affiliate to business clients
- credit provided under government guarantees
- credit provided to businesses in Canada only

Exclude:
- leases
- credit provided to a subsidiary or an affiliate
- equity investments
- credit provided through factoring (invoice discounting of purchase of receivables)
- loans or mortgages that you have received

C. Stock of Debt Financing - Question identifier:3.

Report all business credit outstanding as of the end of the 6 months indicated in Section A, for both 'Number of business credit accounts' and 'Value of loans and credit outstanding ('000)' by the following authorization levels of business client:

• 01: Less than $50,000
• 02: $50,000 - $99,999
• 03: $100,000 - $249,999
• 04: $250,000 - $999,999
• 05: $1,000,000 - $4,999,999
• 06: $5,000,000 or more
• 07: Total - all clients

C. Stock of Debt Financing - Question identifier:4.

Report all business credit outstanding as of the end of the 6 months indicated in Section A, for both 'Number of business credit accounts' and 'Value of loans and credit outstanding ('000)' by the following industry groups:

• 01: Agriculture (111,112,1151,1152)
• 02: Other Primary Industries (113,114,1153,21)
• 03: Construction (23)
• 04: Manufacturing (31-33)
• 05: Wholesale and Retail Trade (41,44,45)
• 06: Transportation and Warehousing (48-49)
• 07: Finance and Insurance (52)
• 08: Real Estate and Rental and Leasing (53)
• 09: Professional Services (54)
• 10: Accommodation and Food Services (72)
• 11: All other industries and/or unknown
• 12: Total - all industries
• 13: Of the amount reported for Total - all industries, enter an amount representing knowledge-based industries

C. Stock of Debt Financing - Question identifier:5.

Report all business credit outstanding as of the end of the 6 months indicated in Section A, for both 'Number of business credit accounts' and 'Value of loans and credit outstanding ('000)' by the following instrument types:

• 01: Term loans
• 02: Mortgage loans
• 03: Lines of credit
• 04: Credit cards
• 05: Other (please specify in comment section)
• 06: Total - all instruments

For questions 6 and 7, please report debt financing for term instruments only.

Include:
- term loans and mortgage loans
- umbrella credit
- credit provided by a subsidiary or an affiliate to business clients
- credit provided under government guarantees
- credit provided to businesses in Canada only

Exclude:
- lines of credit and credit cards
- letters of credit
- leases
- credit provided to a subsidiary or an affiliate
- equity investments
- credit provided through factoring (invoice discounting of purchase of receivables)
- loans or mortgages that you have received

D. Flow of Debt Financing - Question identifier:6.

Report all new term credit (gross) disbursed and number of disbursements during the 6 months indicated in Section A, by the following authorization levels of business client:

• 01: Less than $50,000
• 02: $50,000 - $99,999
• 03: $100,000 - $249,999
• 04: $250,000 - $999,999
• 05: $1,000,000 - $4,999,999
• 06: $5,000,000 or more
• 07: Total - all clients

D. Flow of Debt Financing - Question identifier:7.

Report all new term credit (gross) disbursed and number of disbursements during the 6 months indicated in Section A, by the following industry groups:

• 01: Agriculture (111,112,1151,1152)
• 02: Other Primary Industries (113,114,1153,21)
• 03: Construction (23)
• 04: Manufacturing (31-33)
• 05: Wholesale and Retail Trade (41,44,45)
• 06: Transportation and Warehousing (48-49)
• 07: Finance and Insurance (52)
• 08: Real Estate and Rental and Leasing (53)
• 09: Professional Services (54)
• 10: Accommodation and Food Services (72)
• 11: All other industries and/or unknown
• 12: Total - all industries
• 13: Of the amount reported for Total - all industries, enter an amount representing knowledge-based industries

For question 8, report debt financing for all new operating instruments only.

Include:
- lines of credit
- credit cards
- letters of credit
- other credit instruments used to finance the day to day operations of a business
- credit provided by a subsidiary or an affiliate to business clients
- credit provided under government guarantees
- credit provided to businesses in Canada only

Exclude:
- term loans and mortgage loans
- umbrella credit
- other term credit instruments reported in C
- leases
- credit provided to a subsidiary or an affiliate
- equity investments
- credit provided through factoring (invoice discounting of purchase of receivables)
- loans or mortgages that you have received

D. Flow of Debt Financing - Question identifier:8.

Report all new operating credit (gross) disbursed and number of disbursements during the 6 months indicated in Section A, by the following authorization levels of business client:

• 01: Less than $50,000
• 02: $50,000 - $99,999
• 03: $100,000 - $249,999
• 04: $250,000 - $999,999
• 05: $1,000,000 - $4,999,999
• 06: $5,000,000 or more
• 07: Total - all clients

E. Arrears - Question identifier:9.

Report all business credit that was in arrears by more than 90 days at the end of the 6 month period indicated in Section A, for both 'Number of credit accounts in arrears' and 'Value of credit in arrears ('000)' by the following authorization levels of business client:

• 01: Less than $50,000
• 02: $50,000 - $99,999
• 03: $100,000 - $249,999
• 04: $250,000 - $999,999
• 05: $1,000,000 - $4,999,999
• 06: $5,000,000 or more
• 07: Total - all clients

F. Conclusion - Question identifier:10.

Approximately how long did you spend collecting the data and completing this questionnaire?

• 01: HH / MM

Comments:
If you have any comments concerning this survey please make note of them in the space below. Please explain any significant changes in accounting or basis of reporting affecting the comparison of this return with that of the previous 6 months.

Given Name:

Family Name:

Title:

Date:

Telephone:

Email:

Given Name of person to contact if different from above:

Family Name of person to contact if different from above:

Email of person to contact if different from above:

- Agriculture (111, 112, 1151, 1152)

111 Crop Production This subsector comprises establishments, such as farms, orchards, groves, greenhouses and nurseries, primarily engaged in growing crops, plants, vines, trees and their seeds (excluding those engaged in forestry operations). 112 Animal Production This subsector comprises establishments, such as ranches, farms and feedlots, primarily engaged in raising animals, producing animal products and fattening animals. 1151 Support Activities for Crop Production This industry comprises establishments primarily engaged in providing support activities for growing crops. 1152 Support Activities for Animal Production This industry comprises establishments primarily engaged in providing support activities related to raising livestock, including companion animals.

- Forestry, Fishing and Hunting (113, 114, 1153)

113 Forestry and Logging This subsector comprises establishments primarily engaged in growing and harvesting timber on a long production cycle (of ten years or more). 114 Fishing, Hunting and Trapping This subsector comprises establishments primarily engaged in harvesting fish and other wild animals from their natural habitats. 1153 Support Activities for Forestry This industry comprises establishments primarily engaged in performing particular support activities, related to harvesting timber.

- 21 Mining, Quarrying, and Oil and Gas Extraction

This sector comprises establishments primarily engaged in extracting naturally occurring minerals. These can be solids, such as coal and ores; liquids, such as crude petroleum; and gases, such as natural gas. The term "mining" is used in the broad sense to include quarrying, well operations, milling (for example, crushing, screening, washing, or flotation) and other preparation customarily done at the mine site, or as a part of mining activity.

- 23 Construction

This sector comprises establishments primarily engaged in constructing, repairing and renovating buildings and engineering works, and in subdividing and developing land.

- 31-33 Manufacturing

This sector comprises establishments primarily engaged in the physical or chemical transformation of materials or substances into new products.

- 41 Wholesale Trade

This sector comprises establishments primarily engaged in wholesaling merchandise and providing related logistics, marketing and support services. The wholesaling process is generally an intermediate step in the distribution of merchandise and is therefore organized to sell merchandise in large quantities to retailers, and business and institutional clients.

- 44-45 Retail Trade

This sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise and they are organized to sell merchandise in small quantities to the general public.

- 48-49 Transportation and Warehousing

This sector comprises establishments primarily engaged in transporting passengers and goods, warehousing and storing goods, and providing services to these establishments.

- 52 Finance and Insurance

This sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions.

- 53 Real Estate and Rental and Leasing

This sector comprises establishments primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets.

- 54 Professional, Scientific and Technical Services

This sector comprises establishments primarily engaged in activities in which human capital is the major input. These establishments make available the knowledge and skills of their employees, often on an assignment basis. The main components of this sector are legal services industries, accounting and related services industries, architectural, engineering and related services industries, surveying and mapping services industries, design services industries, management, scientific and technical consulting services industries, scientific research and development services industries, and advertising services industries.

- 72 Accommodation and Food Services

This sector comprises establishments primarily engaged in providing short-term lodging and complementary services to travellers, vacationers and others, in facilities such as hotels, motor hotels, resorts, motels, casino hotels, bed and breakfast accommodation, housekeeping cottages and cabins, recreational vehicle parks and campgrounds, hunting and fishing camps, and various types of recreational and adventure camps.

Knowledge based firms are considered the backbone of the "new economy." They have been considered to be consistently outperforming the total economy in terms of growth and job creation since the 1970s. Because of their smaller size and the nature of their activities, they imply different challenges for traditional suppliers of finance.

Typically, firms involved in pharmaceuticals, health biotech, new materials, telecommunications, information technology, software, medical equipment and avionics are considered to be in the knowledge-based industries. They have long product development cycles and their comparative advantage usually comes from innovative and creative people who make up the development team. These companies face particular financing challenges because of their lack of fixed assets, the difficulty that traditional lenders have in assessing their potential, and the unique operational risks they face. As a result of challenges faced by these firms in obtaining financing, we have been asked to undertake collection of data related to the knowledge based industries to see the extent of financing activities related to firms in these industries.

Definition:
In 1996, based on research undertaken by Industry Canada and the Business Development Bank of Canada, a definition of knowledge-based industries (KBI) was developed using the Standard Industrial Classification (SIC). This has since been converted to the North American Industrial Classification System (NAICS). Since there was no single definition of KBI, Industry Canada proposed the use of a two-tiered categorization of industries that would be appropriate for identifying industries as KBI.

- Tier I - a narrow band of science and technology-based firms, composed of knowledge producers; and

- Tier II - a broad band of "high knowledge" firms which, based on measures of research and development and knowledge worker inputs, could be considered to be business innovators and high-knowledge users

These are the industries included in the Tier I group:

NAICS 2007 Industry

325410 Pharmaceutical and Medicine Manufacturing 333310 Commercial and Service Industry Machinery Manufacturing 334110 Computer and Peripheral Equipment Manufacturing 334210 Telephone Apparatus Manufacturing 334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing 334290 Other Communications Equipment Manufacturing 334310 Audio and Video Equipment Manufacturing 334410 Semi-Conductor and Other Electronic Component Manufacturing 334511 Navigational and Guidance Instruments Manufacturing 334512 Measuring, Medical and Controlling Devices Manufacturing 335920 Communication and Energy Wire and Cable Manufacturing 336410 Aerospace Products and Parts Manufacturing 511210 Software Publishers 512110 Motion Picture and Video Production

512190 Post-Production and Other Motion Picture and Video Industries 515210 Pay and Specialty Television 517110 Wired Telecommunications Carriers 517210 Wireless Telecommunications Carriers (Except Satellite) 517310 Telecommunications Resellers 517410 Satellite Telecommunications 517910 Other Telecommunications 518210 Data Processing, Hosting and Related Services 541360 Geophysical Surveying and Mapping Services 541370 Surveying and Mapping (Except Geophysical) Services 541380 Testing Laboratories 541510 Computer Systems Design and Related Services 541620 Environmental Consulting Services 541690 Other Scientific and Technical Consulting Services 541710 Research and Development in the Physical, Engineering and Life Sciences

These are the industries included in the Tier II group:

NAICS 2007 Industry

221111 Hydro-Electric Power Generation 221112 Fossil-Fuel Electric Power Generation 221113 Nuclear Power Generation 221119 Other Electric Power Generation 221121 Electric Bulk Power Transmission and Control 221122 Electric Power Distribution 324110 Petroleum Refineries 324121 Asphalt Paving Mixture and Block Manufacturing 324190 Other Petroleum and Coal Product Manufacturing 325110 Petrochemical Manufacturing 325120 Industrial Gas Manufacturing 325130 Synthetic Dye and Pigment Manufacturing 325181 Alkali and Chlorine Manufacturing 325189 All Other Basic Inorganic Chemical Manufacturing 325190 All Other Basic Organic Chemical Manufacturing

325210 Resin and Synthetic Rubber Manufacturing 325313 Chemical Fertilizer (except Potash) Manufacturing 325314 Mixed Fertilizer Manufacturing 325320 Pesticide and Other Agricultural Chemical Manufacturing 325520 Adhesive Manufacturing 325910 Printing Ink Manufacturing 325920 Explosives Manufacturing 325991 Custom Compounding of Purchased Resins 325999 All Other Miscellaneous Chemical Product Manufacturing 332991 Ball and Roller Bearing Manufacturing 333110 Agricultural Implement Manufacturing 333120 Construction Machinery Manufacturing 333130 Mining and Oil and Gas Field Machinery Manufacturing 333210 Sawmill and Woodworking Machinery Manufacturing 333220 Rubber and Plastics Industry Machinery Manufacturing 333291 Paper Industry Machinery Manufacturing 333299 All Other Industrial Machinery Manufacturing 333413 Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing

333416 Heating Equipment and Commercial Refrigeration Equipment Manufacturing 333611 Turbine and Turbine Generator Sets Units Manufacturing 333619 Other Engine and Power Transmission Equipment Manufacturing 333910 Pump and Compressor Manufacturing 333920 Material Handling Equipment Manufacturing 333990 All Other General-Purpose Machinery Manufacturing 335311 Power Distribution and Specialty Transformers Manufacturing 335312 Motor and Generator Manufacturing 335315 Switchgear and Switchboard, and Relay and Industrial Control Apparatus Manufacturing 336320 Motor Vehicle and Electronic Equipment Manufacturing

486110 Pipeline Transportation of Crude Oil 486210 Pipeline Transportation of Natural Gas 486910 Pipeline Transportation of Refined Petroleum Products 486990 All Other Pipeline Transportation 541310 Architectural Services 541320 Landscape Architectural Services 541330 Engineering Services 541340 Drafting Services