On May 11, 2020, the federal government announced that it will establish a Large Employer Emergency Financing Facility (“LEEFF”) to provide bridge financing to large employers who are affected by COVID-19. The purpose of LEEF is to help keep such big businesses continue to operate and keep employees on payroll.
The LEEFF program will be delivered by the Canada Development Investment Corporation (CDEV), in cooperation with Innovation, Science and Economic Development of Canada (ISED), and the Department of Finance.
Who can apply:
The following types of businesses can apply for LEEFF:
- large for-profit businesses, except businesses in the financial sector, with annual revenues of $300 million or higher; and
- some large not-for-profit businesses, such as airports, may also qualify.
How to qualify:
In order to qualify for LEEFF, the applying business must:
- be seeking financing of about $60 million or more;
- have significant operations or workforce in Canada;
- not be involved in active insolvency proceedings, and
- not have been convicted of tax evasion.
Other Requirements and Restrictions:
In addition to the qualification requirements, the government has also made it clear that recipient businesses will also need to:
- demonstrate how they intend to preserve employment and maintain investment activities; and
- commit to publish annual climate-related disclosure reports consistent with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures, including how their future operations will support environmental sustainability and national climate goals.
There will also be strict limits placed on the recipient’s business in relation to dividends, share buy-backs, and executive pay.
For more information or any further questions, please contact Jordanna Cytrynbaum.