Business Credit Availability Program Expansion & Large Employer Emergency Financing Facility Creation

On May 11th, the Federal Government announced an expansion of the Business Credit Availability Program (BCAP) and established the Large Employer Emergency Financing Facility (LEEFF). BCAP is expanding to include mid-sized companies with larger financing needs. Business Development Canada (BDC) and Export Development Bank of Canada (EDC) will deploy these programs through financial institutions to provide loans of up to $60 million per company and guarantees of up to $80 million for mid-market businesses.

The LEEFF is designed to provide bridge financing to Canada’s largest employers in order to keep their operations going during the pandemic.

Employers must:

  • Have annual revenues of more than $300 million
  • Be looking for financing of $60 million or more
  • Have significant operations or large numbers of employees in Canada
  • Disclose their climate action plans

Employers cannot:

  • Be involved in any ongoing insolvency proceedings
  • Pay their executives “excessive salaries”
  • Have been found guilty of tax evasion

Further details on both programs are still being worked out and information on application processes is expected shortly.

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