May 12, 2020by Israel Foulon LLP
Since our May 7, 2020 E-Bulletin, the Federal Government has announced additional measures to help Canadian businesses confront the economic hardship caused by COVID-19.
Large Employer Emergency Financing Facility (LEEFF)
- The LEEFF will provide bridge financing for Canada’s largest employers.
- It is intended as a last resort lending program. Employers with access to conventional lending measures will not be eligible.
- The LEEFF will be available to businesses with annual revenue in excess of $300,000,000.
- To qualify, eligible businesses must be seeking financing of at least $60,000,000.
- Eligibility will be determined by reference to the following principles:
- Protection for Tax Payers and workers: Recipients will be required to make firm commitments on restrictions to limit share buy back, dividends, and executive pay.
- Climate Change: Recipients must commit to publishing annual reports detailing their efforts to support national climate goals.
- Fairness: Financing will be available across all business sectors.
- Timeliness: The LEEFF will apply a standard set of economic terms to ensure an expedient rollout.
- To access the government’s official announcement, please CLICK HERE.
Expanding the Canada Emergency Wage Subsidy (CEWS)
- The CEWS provides eligible employers a subsidy of 75% of employee wages up to a maximum of $847 per employee per week. Applications for the CEWS opened on April 27, 2020.
- Employment Minister Carla Qualtrough has announced that the government is planning to extend the CEWS by several months. Exact details will be revealed following an assessment of the CEWS’ efficacy.
Expanding the Business Credit Availability Program (BCAP)
- The Economic Development Council (EDC) has announced that the program will be expanded to provide liquidity for mid-sized businesses with average annual revenues ranging from $50 to $300 million.
- The expanded program will provide eligible businesses with operating credits and cashflow loans ranging in size from $16.75 million to a maximum of $80 million.
- The expanded guarantee will include exporters, international investors, and businesses that sell products within Canada.
- For more details on the expanded BCAP, CLICK HERE.
The Economic Development Council has published a Database of Economic Assistance programs available for Businesses navigating COVID-19.
- To access the database, CLICK HERE.
Given the exceptional and unprecedented situation, we expect further developments in the coming days.
Israel Foulon’s Response to COVID-19
Israel Foulon is assessing the situation as it evolves, and is taking all necessary precautions within its workplace. To slow the spread of COVID-19 and for the health of our team and clients, absent extraordinary circumstances we are working remotely until further notice whenever possible. However, please be aware that our offices remain open and are fully functioning. In the circumstances, we encourage our clients to contact us by phone and email to the extent possible. Voicemail messages left at our office phone numbers are immediately forwarded via email. All messages will be promptly responded to. We remain steadfast in our commitment to our clients and would be more than happy to assist you with concerns regarding COVID-19 or any other employment or labour matters.