Prime Minister Justin Trudeau pauses as he delivers a message specifically to kids, ahead of Mother’s Day, at the beginning of his daily news conference on the COVID-19 pandemic outside his residence at Rideau Cottage in Ottawa, on Saturday, May 9, 2020. THE CANADIAN PRESS/Justin Tang

Feds pledge aid, financing for large and medium sized businesses affected by COVID-19

Programs will place limits on dividends, share buy-backs and executive pay.

The federal government on Monday (May 11) announced a plan to help large and medium-sized businesses affected by COVID-19.

Included in the plan is a Large Employer Emergency Financing Facility (LEEFF) to provide bridge financing to large for-profit businesses – except those in the finance sector – and some not-for-profit companies, including airports, with annual revenues hitting $300 million or higher.

Federal officials also announced an expansion to the Business Credit Availability Program (BCAP) to medium-sized businesses, which will include loans of up to $60 million per company and guarantees of $80 million.

“Our purpose is to keep Canadian companies on their feet,” Prime Minister Justin Trudeau said during his near-daily address at Rideau Cottage Monday.

The programs will place “strict limits” on dividends, share buy-backs and executive pay.

“If a company wants to access this public financing… the money has to go to support employees and not high-paid executives,” Trudeau said, but did not provide details about how Ottawa would guarantee that.

The prime minister said Ottawa was a “lender of last resort” meant to prevent “longterm damage to the Canadian economy.”

Any companies convicted of tax evasion won’t be eligible for the money, which will be open to all sectors of the economy. Companies engaging in tax avoidance will be expected to restructure their finances to pay a fair amount, Trudeau said. Oil and gas companies are not restricted from applying, he noted, but will be expected to show how they are supporting environmental sustainability and national climate goals.

The prime minister noted the low-cost lending isn’t for companies who don’t need it, nor is it to rescue those that were facing insolvency before the crisis.

The program does not exclude those businesses that have applied for the wage subsidy, which provides companies with 75 per cent of its employees’ salaries, up to $847 per employee each week.

In a press conference following the announcement, Conservative Party Leader Andrew Scheer said the funding was devoid of necessary details and that it did not provide enough money to the oil ad gas sector.

READ MORE: More COVID-19 restrictions being lifted across the country

READ MORE: COVID-19 wage subsidy program extended as pandemic pushes millions out of workforce

COVID-19 in Canada
Infogram


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

CanadaCoronavirusJustin Trudeau

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Man found dead in his tent at Chemainus homeless camp

Facebook posts tell of personal struggles and attempts to stay clean and sober

Simpson staying sharp for the baseball call

Pirates’ Chemainus player scraps initial plans for Houghton College in New York

CBIA ad campaign a business booster

Great to learn more about the people serving the community

Chemainus Inn experiences a direct hit from Theatre shutdown

Occupancy down 80 per cent in large part to cancelled bookings

3 people found violating court imposed curfews in Cowichan

People are placed on curfews for a variety of public safety reasons.

March dental conference key to many of B.C.’s COVID-19 cases

Early infections from China, Iran were quickly contained

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Cortes Island affordable housing project hangs by a thread

Regional decision makers resort to COVID-19 concerns despite virtual meeting option and push hearing to September

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

North Island recreation camping site closed due to vandalism

Damage happens every year, forcing site manager to reallocate improvement budget to repairs

Tla-o-qui-aht First Nation woman, 26, fatally shot by police in Edmundston, N.B.

Police were conducting a well-being check at the time of the incident

Seniors to receive up to $500 in promised COVID-19 emergency aid in early July

The Liberal government first promised the extra help in mid-May, but had to create a new system to deliver the aid

VIDEO: Revelstoke bear wanders into Animal House pet store

Staff got ready to chase it out with a broom

New study is first full list of species that only exist in Canada

Almost 40 per cent of them are critically imperilled or imperilled and eight are already extinct

Most Read