Prime Minister Justin Trudeau says the federal government will help mid-size businesses and larger employers to access financing amid the COVID-19 crisis.
Trudeau says the business credit availability program created to help small businesses will be expanded to also help mid-size businesses stay afloat.
The new Large Employer Emergency Financing Facility will help larger employers access loans with the help of Export Development Canada, the Canada Development Bank and the private sector.
“These are bridge loans, not bailouts,” Trudeau says.
The goal is to help businesses avoid bankruptcies and job losses, Trudeau says.
Rules on access to the money will place limits on dividends, share buy-backs and executive pay.
Any companies convicted of tax evasion won’t be eligible for the money, which will be open to all sectors of the economy.
Finance Minister Bill Morneau says the low-cost lending isn’t for those who don’t need it, nor is it to rescue companies that were facing insolvency before the crisis.
The Canadian Press
