Today, Prime Minister Justin Trudeau unveiled additional details on the Federal Government’s Large Employer Emergency Financing Facility (LEEFF) including the application process, updated eligibility criteria, terms and conditions and the availability of these loans. He also provided more information on the Canada Emergency Commercial Rent Assistance Program aimed at helping smaller businesses cover their rents between April and June.
Large Employer Emergency Financing Facility (LEEFF)
The PM announced that starting today, large employers impacted by the COVID-19 economic downturn can apply to receive funding through the Large Employer Emergency Financing Facility (LEEFF) program. The loans will be offered for the next 12 months on a case-by-case basis dependent on individual needs. “I want to be very clear – we are not offering companies a bailout,” said Trudeau. “We are making loans available so companies can weather the storm and continue to employ millions of hard-working Canadians.”
According to the application process, companies can apply as long as the “current economic situation persists.”
Eligible companies include businesses which have a “significant impact” on the Canadian economy, including having a large workforce or operation in Canada. Companies must make a demonstrable commitment to keeping their domestic business activities alive with the assistance of the loan.
The program will be delivered through a subsidiary of the Canada Development Investment Corporation. You can read the full release here.
Canada Emergency Commercial Rent Assistance Program
The PM also announced a new Canada Emergency Commercial Rent Assistance Program. Commercial property owners will be offered forgivable loans to cover 50 per cent of three-monthly rent payments. The loans will be forgiven if the property owner agrees to reduce eligible businesses’ rent by at least 75 per cent for the three months. “If you are a landlord, and you and your tenant are eligible – please apply,” Trudeau said.
Applications will be accepted through the Canada Mortgage and Housing Corporation website beginning on May 25.
The PM also noted that the government is working to provide new supports for larger retailers, promising more information “soon.”
He closed his remarks by reminding parents that those who receive the Canada Child Benefit today will be getting an additional $300 per child. “This is money to help your family get through this difficult period,” he said. “We want all parents to know that we are there for you and that we will get through this together.”