LEEFF aid for large employers to protect millions of jobs across Canada

In this morning’s daily briefing, Prime Minister Justin Trudeau announced a new wave of federal funding for COVID-19 relief. The Business Credit Availability Program will be expanded and the Large Employer Emergency Financing Facility (LEEFF) will be introduced to support big businesses in Canada in all sectors and provinces and territories.

“We will be expanding the Business Credit Availability Program, which was originally created so that small businesses can remain financially sound, by including mid-size businesses that need more capital,” Prime Minister Trudeau said. “Export Development Canada and Business Development Canada will be working with private sector lenders to increase access to capital by tens of millions of dollars for Canadian companies in all industry sectors and all regions of the country. We will also be introducing the Large Employer Emergency Financing Facility (LEEFF) to help large companies that cannot receive funding through other means get through this crisis. I want to be clear, this is bridge financing, not a blank cheque. We are providing support to these large employers to protect millions of jobs cross the country.”

Prime Minister Trudeau went on to explain that he funding is based on three main principles:

“First, the goal of the Business Credit Program is not to fund non-viable businesses or allow them to restructure. It is not our intention either to provide low-interest loans to large companies that don’t need them.

“Second, we want to be fair. This funding will be accessible to all sectors and all provinces and territories.

“Third, we will protect peoples’ jobs — that is the most important thing. Businesses that receive this assistance will have to make certain commitments. For example, maintain jobs and investments, abide by collecting agreements and their obligations with respect to pensions. And, make specific commitments with respect to the environment. There will be strict limits on dividends, share buybacks and executive pay. In order to counter tax evasion and tax avoidance, businesses will have to disclose their financial structure when they apply for this funding.”

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LEEFF federal aid for large employers to protect millions of jobs cross Canada