Unveiled on May 11, 2020, the Large Employer Emergency Financing Facility (LEEFF) will provide bridge financing to Canada’s largest businesses who have been affected by the COVID-19 pandemic.
The program is designed to help companies maintain their operations and protect jobs, and will not be open to those undergoing insolvency proceedings or in the process of restructuring.
The LEEFF will be available to for-profit businesses (except those in the financial sector) and certain not-for profit organizations (such as airports) whose credit needs are not being met by conventional financing. To qualify, businesses must:
- have annual revenues of $300 million or higher
- be seeking financing of $60 million or more
- have significant operations or a large workforce in Canada
Those seeking access to funding will be required to:
- demonstrate how they intend to maintain employment and investment activities
- respect collective bargaining agreements and pensions obligations
- abide by limits on dividends, share buy-backs and executive pay
- publish annual climate-related disclosure reports that will include how future operations will support environmental sustainability and national climate goals
- undergo an evaluation of employment tax, economic activity in Canada, international organizational structure and financial arrangements.
Organizations that have been convicted of tax evasion will not be eligible for funding.
This program will be delivered by the Canada Development Investment Corporation (CDEV), in cooperation with the Innovation, Science and Economic Development Canada and Department of Finance. More details will follow.
