OTTAWA – The federal government said it will provide loans and financing to the country’s largest employers to help them weather the COVID-19 economic crisis.
The Large Employer Emergency Financing Facility will provide bridge financing to companies whose financial needs aren’t being met by conventional credit, so they can stay open and avoid layoffs.
“Our message to Canadian workers remains the same: We have your back,” Finance Minister Bill Morneau said.
He added after announcing supports for small and medium-sized businesses, the government’s focus is now turning to large employers who are struggling through this pandemic.
“But let me be clear — these are bridge loans, not bailouts,” Prime Minister Justin Trudeau said Monday.
In a statement, prime Minister @JustinTrudeau announces new economic supports for large employers suffering due to #COVID19 pandemic #cdnpoli pic.twitter.com/E1WouDk9gi
— Cormac Mac Sweeney (@cmaconthehill) May 11, 2020
The program is aimed at companies with $300 million or more in revenues and comes with conditions to protect workers and taxpayers.
“Those include maintaining jobs and investment, respecting collective agreements and pension obligations, and environmental and climate commitments,” Trudeau explained, reiterating comments made by Morneau.
This will be available for all sectors across the economy, including those struggling most, like the airline and tourism industries.
There will be restrictions around executive pay, and companies convicted of tax evasion are disqualified.
Here are the restrictions that come with the bridge financing for large businesses #cdnpoli #COVID19 pic.twitter.com/eZF4TP430R
— Cormac Mac Sweeney (@cmaconthehill) May 11, 2020
Morneau noted the low-cost lending isn’t for those who don’t need it, nor is it to rescue companies that were facing insolvency before the crisis.
“It’s there to make sure that companies that came into this crisis on strong footing get to the other side, and can rebound quickly,” he said.
Meanwhile, the federal government is also expanding business and farm credit options so mid-market businesses can get loans of up to $60 million per company.
Conservative Leader Andrew Scheer said he’s not happy with the announcement, adding the prime minister had promised specific, unique support for sectors like energy.
“Because if this is it, this is certainly not what was promised nor what was expected,” Scheer said earlier Monday.
Alberta Finance Minister Travis Toews said the government is pleased with the help for large companies, including those in the oil and gas sector.
“Our government appreciates today’s announcement which responds to our repeated advocacy over the last two months to ensure a future for Canada’s largest employers during this time extraordinary adversary.”
He said there are still some details to be worked out but believes that the announcement is in line with what they have been advocating for.
“This package would include the oil and gas or energy sector. It certainly is not specific to that sector. It includes our airline industry and the energy industry.”
