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Feds pledge COVID-19 financing help for the country's biggest companies

Minister of Finance Bill Morneau responds to a question during a news conference in Ottawa, Friday, March 27, 2020. THE CANADIAN PRESS/Adrian Wyld

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.

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.