The Large Employer Emergency Financing Facility (LEEFF) will provide support to employers with annual revenues of more than $300 million whose credit needs are not being met through conventional financing.
The objective of this support is to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies of otherwise viable firms where possible. This support will not be used to resolve insolvencies or restructure firms, nor will it provide financing to companies that otherwise have the capacity to manage through the crisis. The additional liquidity provided through LEEFF will allow Canada’s largest businesses and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery.
Further details on the LEEFF support are still to come. Here’s what we know so far:
- Companies seeking support must demonstrate how they intend to preserve employment and maintain investment activities.
- Recipients will need to commit to respect collective bargaining agreements and protect workers’ pensions
- Strict limits to dividends, share buy-backs, and executive pay
- An assessment may be made of a company’s employment, tax and economic activity in Canada
- Program will not be available to companies that have been convicted of tax evasion
- Recipient companies will be required to commit to publish annual climate-related disclosure reports