Canada Offers Bridge Loans to Big Firms in Widening Rescue

Canada unveiled a loan program for large firms that have been hit by Covid-19 and can’t get financing by conventional means. The Large Employer Emergency Financing Facility is for companies and non-profit organizations with annual revenue of C$300 million ($214 million) or more, Bloomberg News reported. Firms in all sectors can apply for the funding except the finance industry. Companies that receive money will have to accept limits on executive pay, dividends and share buybacks. “We need to make sure that we are supporting these employers so that Canadians can continue to have jobs once we bounce back from this pandemic,” Prime Minister Justin Trudeau said at an Ottawa press conference, adding “these are bridge loans, not bailouts.” The lending facility aims to stop bankruptcies of otherwise viable firms and protect the Canadian economy, Trudeau told reporters. It isn’t intended to bail out companies that were already in financial trouble before the pandemic. Read more