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

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Council talks trash: New garbage bylaw in the works

Draft bylaw to be voted on at Monday, May 25 council meeting

UPDATE: Police oversight agency investigating after shots fired Saturday night in Chilliwack neighbourhood

RCMP reported a ‘distraught male’ fired at police officers on Christina Drive – IIO is on scene Sunday

Prospera Credit Union, Westminster Savings lay off over 100 staff following historic merge

2020 merger was largest credit-union merger in Canadian history

‘Service beyond the classroom’: Gerry Palmer wins UFV award

Palmer has been involved with UFV for more than 30 years, starting as an instructor

Trudeau to seek 10 days of paid sick leave for Canadian workers, says talks are ongoing

Paid sick leave is key to keeping COVID-19 spread under control, prime minister says

Vancouver Island hasn’t seen a new homegrown case of COVID-19 in two weeks

Island’s low and steady transmission rate chalked up to several factors

Eight people arrested in Victoria homeless camp after enforcement order issued

Those living in tents were given until May 20 to move indoors

Andrew Weaver says he was ready to defeat John Horgan government

Independent MLA blasts B.C. Greens over LNG opposition

20 dead in COVID-19 outbreak at Langley Lodge

There were two new cases detected, according to the Lodge’s update

44% fewer passengers flew on Canadian airlines in March 2020 than in 2019

COVID-19 pandemic has hit airlines hard as travel remains low

UPDATE: One person dead, two in critical condition after Highway 1 collision in Langley

A man and woman were taken to hospital in critical condition

Commercial rent relief applications open as feds encourage landlords to apply

Program would see government cover 50 per cent of the rent

COVID-19: B.C. park reservations surge as campgrounds reopen

Keep trying, many sites not reservable, George Heyman says

Most Read