COVID-19 Update for May 11, 2020 – 12:00pm
Today, Prime Minister Justin Trudeau announced additional measures including a new aid program aimed at supporting large- and medium-sized employers who have been severely impacted by COVID-19.
Large Employer Emergency Financing Facility (LEEFF)
The new Large Employer Emergency Financing Facility, which comes with certain terms and conditions, will allow big companies to access additional liquidity so they can keep their operations going, retain workers on payroll and avoid bankruptcy.
Eligible Companies with large financing needs and annual revenues of $300 million or more across all sectors of the economy will now be able to access these loans. “Let me be very clear,” warned Trudeau. “These are bridge loans, not bail outs.”
Business Credit Availability Program (BCAP)
The federal government is also expanding the Business Credit Availability Program (BCAP) to mid-sized companies with larger financing needs. Support for mid-market businesses will include loans of up to $60 million per company and guarantees of up to $80 million. The government will also continue to provide financing to businesses through Farm Credit Canada, the BDC and EDC, including through the Canada Account, to effectively respond to the needs of large employers facing high risks, and establish stricter terms to adequately protect taxpayers.
“The objective of this aid package is to avoid bankruptcies, keep workers on the payroll and keep Canadian companies up and running,” said Trudeau. “We will not allow millions of people to lose their livelihoods because of unprecedented events beyond their control.”
We hope you are finding these COVID-19 updates useful. In addition to trying to keep on top of the fast-changing situation, Enterprise is also working to support local charities during these challenging times. If you are able, your contributions to this effort would be deeply appreciated.
To donate, please click on the organization below:
- Toronto – Food Banks Canada
- Thunder Bay – Food Banks North West
- Hamilton/Niagara – Hamilton Food Share
- Alberta – Hope Mission
Stay safe. Stay healthy.
The Enterprise Team