Prime Minister Justin Trudeau says financial aid announced for large businesses today will be bridge financing, not bailouts.
Trudeau says the Large Employer Emergency Facility will act as a supplement to the Canada Wage Subsidy Program for employers.
As a credit for companies that make more than $300 million, it will help ensure they don’t go bankrupt due to Covid-19.
“Just as we are finding ways to support small and medium-sized businesses,” said Trudeau, “we’ll provide loans to the largest enterprises to help them weather the storm and protect the millions of jobs they provide across Canada.”
Earlier Finance Minister Bill Morneau said the aid will support rent, leases and other key costs.
Trudeau adds there will be firm limits to dividends and share buybacks.
To fight against tax evasion, businesses must present their full plan for financing before accessing the program.
We know Canadians are worried about their jobs as a result of the pandemic. Today, we’re announcing new measures to save jobs by helping businesses of all sizes keep workers on the payroll. Get the details here: https://t.co/faG9yIPJHh
— Justin Trudeau (@JustinTrudeau) May 11, 2020
Canada’s mid and large-sized companies employ millions of Canadians. We need them to get through this crisis so that they can continue to support families across the country.
No matter where you work, we’ve got your back. https://t.co/DRIvJYHg6t— Bill Morneau (@Bill_Morneau) May 11, 2020
To watch Justin Trudeau’s full May 11th address, see below.