The federal government is committing to a new program to bolster the finances of the country’s largest employers.
Ottawa announced Monday (May 11) the launch of the Large Employer Emergency Financing Facility (LEEFF), which aims to provide bridge financing to big businesses that aren’t able to tap into conventional financing to maintain operations.
The government says the financing can’t be used to resolve insolvencies or restructure firms.
The LEEFF program also will not provide financing to businesses that otherwise have access to capital to make it through the pandemic.
“Companies seeking support must demonstrate how they intend to preserve employment and maintain investment activities. Recipients will need to commit to respect collective bargaining agreements and protect workers’ pensions,” the federal government said in its announcement.
The LEEFF program will be open to large businesses as well as some not-for-profit businesses such airports that have annual revenue of at least $300 million.
Ottawa is also promising to expand its Business Credit Availability Program (BCAP) to mid-sized companies needing more financing.
The changes to BCAP will include loans for mid-market companies of up to $60 million and guarantees of up to $80 million.
Export Development Canada and the Business Development Bank of Canada will be working with private-sector lenders to help companies access the financing through BCAP.
More to come …
