"Millions of Canadians pay their bills and feed their families by working for large and medium-sized businesses. The government will offer support to those businesses affected by COVID-19 based on a number of conditions," the statement said.
The key component program is the Large Employer Emergency Financing Facility (LEEFF), the intent of which is to provide large for-profit and non-profit entities with enough liquidity to survive the COVID-19-induced economic devastation.
The statement explained that LEEFF will be available for companies with more than $215 million in annual revenues and that are seeking in excess of $43 million in funding. However, the program will not be available to companies in the financial sector and those convicted of tax evasion.
All companies will have to outline how they intend to use the funding and the financial aid will be distributed through the Canada Development Investment Corporation in cooperation with other government agencies, the statement said.
The announcement includes the expansion of the Business Credit Availability Program to mid-sized business, through which companies can apply for loans of up to $43 million and guarantees of up to $57 million, the statement added.
The announcement follows a devastating jobs report for the month April that revealed the Canadian economy shed nearly 2 million jobs in April, pushing the unemployment rate to 13 percent.
According to a report from the country’s Office of the Parliamentary Budget Officer, the Canadian economy is projected to contract by 12 percent in 2020, while a think tank said earlier this month that the country has been in a recession from the first quarter of 2020.