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

Greater Victoria’s first BC Cannabis Store could open at Saanich shopping centre

Store application for Uptown Shopping Centre headed for public hearing

MISSING: Victoria police on the lookout for woman last seen April 28

Leah Parker, 41, is described five-foot-five and about 140 pounds with brown/blonde hair, blue eyes

Victoria’s 75,000 veggie plants ready to find a home

New gardeners line-up for Get Growing Victoria

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

Homeless shelter at Save-On-Foods Memorial Centre creates 40 jobs

The arena can house 45 people in pop-up pods

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

Facing changes together: Your community, your journalists

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

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

$10 million fund not yet ready to take applications

Case of missing Vancouver Island woman inspires new true crime podcast

‘Island Crime’ Season 1 covers 2002 disappearance of Nanaimo’s Lisa Marie Young

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

‘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

Dr. Bonnie Henry given new name in B.C. First Nation ceremony: ‘one who is calm among us’

The provincial health officer was honoured in a May 22 ceremony at elementary school in Hazelton

Most Read