The federal government announced a new financial aid plan for big businesses on Monday morning, which looks to provide loans and financing to the country’s largest employers affected by the COVID-19 economic crisis.
Named the Large Employer Emergency Financing Facility, this new program will provide bridge financing to companies whose financial needs aren’t being met by traditional credit, so that they can continue to stay open, and keep employees on their payrolls.
Aimed at supporting companies with $300 million or more in revenues, another goal of the financing program is to avoid bankruptcies for businesses that would otherwise be viable.
Also announced today was an expansion to the Business Credit Availability Program to medium-sized businesses, which will include loans of up to $60 million per company and guarantees of $80 million.
“Let me be clear: these are bridge loans, not bailouts,” said Prime Minister Trudeau during his daily address on Monday.
“If a company wants to access this public financing… the money has to go to support employees and not high-paid executives.”
The programs will place strict limits on dividends, share buy-backs and executive pay, and any companies convicted of tax evasion will not be eligible for the money.
The program will be open to all sectors of the economy.