Business Credit Availability Program High Level Overview “BCAP”

What is BCAP? BCAP is an agreement that was reached between the Federal Government and a number of Canadian financial institutions in January 2009 BCAP was introduced as part of the Canadian Federal Budget in response to a reduced supply of credit in the global and local markets The objective of BCAP is to build on, and enhance where possible, existing relationships to facilitate access to incremental credit for Canadian businesses This is to be achieved through the effective coordination of the activities of financial Crown Corporations, specifically Export Development Canada (EDC) and Business Development Bank of Canada (BDC) and Canadian financial institutions To further help small businesses access financing, the Government also increased the maximum eligible loan amount under the Canadian Small Business Financing Act effective April 1, 2009.

How is BCAP being funded? EDC and BDC will provide at least $5 billion in additional loans and other forms of credit support and enhancement at market rates to businesses with viable business models whose access to financing would otherwise be restricted These additional loans are being funded through: BDC - Authorized capital was increased by $1.5B in addition to a $350MM increase provided in November 2008 EDC - Authorized capital was increased by $1.5B to $3B. Also their contingent liability limit was increased from $30B to $45B to grow guarantees and insurance; and the Canada Account limit was increased from $13B to $20B; and EDC is temporarily authorized to finance in the domestic market including accounts receivable insurance for a two year period

What is Scotiabank’s BCAP commitment? Scotiabank has agreed to work with EDC and BDC to find solutions for creditworthy business customers who would otherwise have insufficient access to credit Scotiabank has agreed to ensure that the extension of credit by EDC and BDC is incremental for Canadian businesses and does not displace or substitute existing Bank approved credit lines in aggregate Scotiabank will participate in the revised CSBFA program by providing small business financing up to the new program limits

What is Scotiabank’s BCAP Commitment? (continued) Small Business Bankers, Commercial Bankers, Scotia Capital and Global Transaction Banking are encouraged to become familiar with the different programs and opportunities under BCAP through this training program and other information sources Referrals to EDC and BDC along with the use of the CSBFA program should be considered when additional credit or credit enhancement is required