No Fixed Amount
Type of Program:
The Large Employer Emergency Financing Facility (LEEFF) program will provide emergency funding support for large Canadian enterprises facing financial challenges in light of the economic impact of the global COVID-19 pandemic.
Comments on Funding:
Funding will take the form of loans of $60 million and above, based on the applicant’s cash flow needs for the next 12 months. The loan size for each applicant will be assessed on a case by case basis based on demonstrated need.
Loan terms and conditions:
In addition to the security interest on the secured facility and the interest rate charged for the loans, if the borrower is a Canadian public company (or the private subsidiary of a Canadian public company), the borrower must issue warrants with the option to purchase the borrower’s (or parent public company’s) common shares totaling 15% of the principal amount or receive cash consideration equivalent to the value of the warrants.
The warrants will enable CEEFC to share in the upside of the borrower’s recovery. These warrants may be settled with the borrower prior to being exercised or sold to third party buyers after the loan is repaid. Borrowers without publicly-traded shares will be required to provide CEEFC with compensation in the form of additional fees at a level commensurate to the value of the warrants for public company borrowers.
When It Ends:
Applicant must be:
Certain not-for-profit enterprises, such as airports, could also be eligible. Companies that have been found guilty of tax evasion are not eligible under the program.
Applicants should register their interest at firstname.lastname@example.org.
A CEEFC representative will promptly send applicants a non-disclosure agreement, application form and instructions. The application form will request important information relating to the applicant and its financial condition.
Applicants will be contacted by both representatives of CEEFC and ISED Canada to begin the process. Broader sectoral dynamics for LEEFF applicants will be considered by Innovation Science and Economic Development Canada.
Other Things to Note:
CEEFC is a subsidiary of CDEV (Canada Development Investment Corporation) that has been formed to administer the Large Employer Emergency Financing Facility (LEEFF). CEEFC’s and CDEV’s mandate relates exclusively to the Government of Canada’s LEEFF Program.
Covid Related Measures:
COVID business support program