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

COVID-19 closes Okanagan College summer camps

Popular Camp OC put on shelf from Salmon Arm to Penticton, and Revelstoke, until 2021

UPDATE: Penticton RCMP find no evidence of early morning gunshots

Loud blasts reported by several residents, RCMP say one person likened blasts to a car backfiring

COVID-19: SD67 approves budget reductions

Staff positions will be cut to balance budget

COVID-19: Pre-recorded graduation events planned for students in School District 67

Graduates from Penticton Secondary have created petition to urge postponement of grad ceremonies

COVID-19: SD67 plans restart program for Penticton, Summerland students

District following provincial guidelines as students return to classrooms on June 1

Video: Okanagan mayors encourage water conservation this summer

Water conservation this summer could be more important than ever, experts say

Paid parking in Kelowna to resume in stages

Paid parking back June 1 around Kelowna General Hospital and some downtown parking, further restrictions lifted June 15

Public asked to leave Okanagan bear and cubs alone

Sow and babes spent the day up a tree Saturday in a busy area

B.C. man with Alberta plates gets car keyed and aggressive note

Some out-of-province people are finding hostile reception due to COVID-19 worries

B.C. drive-in theatre appeals COVID-19 concession rules, 50-car limit

With 50 cars and the removal of concession sales, drive-in owner says theatre might have to close

COVID-19: B.C. grants aim to stabilize sexual assault recovery programs

$10 million fund not yet ready to take applications

B.C. mom’s drug-pricing petition on behalf of son garners thousands of signatures

Petition geared to gaining access to new medicines drew support of Chilliwack-Hope MP Mark Strahl

Body of missing woman found in Kelowna

Kelly Joy Zuchotzki was last seen on May 24

‘Paralyzed by fear’: B.C. woman details anxiety, grief at Italian relief hospital

Sheila Vicic spent two months in Italy as the country grappled with COVID-19

Most Read