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.
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
The government said in a release that another goal of the financing program, aimed at companies with $300 million or more in revenues, is to avoid bankruptcies of otherwise viable firms wherever possible.
Rules on access to the money will place limits on dividends, share buy-backs and executive pay.
Any companies convicted of tax evasion won’t be eligible for the money, which will be open to all sectors of the economy.
Finance Minister Bill Morneau said 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.