COVID-19: Economic Relief Measures Announced to Date

  • On May 11, 2020, the Prime Minister of Canada announced the LEEFF to provide bridge financing to Canada’s largest employers.
  • The objective of this support is to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies of otherwise viable firms where possible.
  • Companies seeking support from the LEEFF must demonstrate how they intend to preserve employment and maintain investment activities.
  • To qualify for LEEFF support, eligible businesses must be seeking financing of about $60 million or more, have significant operations or workforce in Canada, and not be involved in active insolvency proceedings.
  • The LEEFF is administered by the Canada Development Investment Corporation.
  • For more information, see the Prime Minister’s news release of May 11, 2020 and see our detailed publication on the LEEFF here. Additional information on the application process is available on the CDEV website.[29][30][31]

Support for debtors

  • Due to concerns about debtors defaulting on their proposals, the CRA is offering a waiver of the default pursuant to section 62.1 of the BIA and is granting a deferral of payments up to September 1, 2020.
  • For consumer proposals under the BIA, the CRA is offering to accept an amended proposal which calls for a deferral of payments up to September 1, 2020.
  • New measures for consumer proposals have been introduced in all provinces. As a result of these orders, debtors who have submitted consumer proposals will be able to “skip” three additional payments between March 13, 2020, and December 31, 2020, without defaulting on their proposal.
  • This relief is available to taxpayers and Licensed Insolvency Trustees in circumstances where the CRA is the majority creditor and the debtor is facing financial hardship.
  • For more information, see the CRA’s news release of April 23, 2020.[32]

Regional Relief and Recovery Fund (RRRF)

  • The RRRF will devote up to $962 million to help more small businesses and organizations in sectors that are key to their regions and to local economies. The funding will be provided through the six regional development agencies (RDA) covering every region of Canada. Businesses interested in receiving support can apply, starting on May 13, 2020, for the RRRF through their local RDA.
  • For more information, see the Government of Canada’s news release of May 13, 2020.[33]

Business Credit Availability Program

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