Canadian Chamber: liquidity program a step forward for larger companies

(OTTAWA) – May 11, 2020 – Canadian Chamber of Commerce’s President and CEO, Perrin Beatty, issued the following statement today regarding the updated financing program for businesses dealing with amid COVID-19:

“As businesses of all sizes have been hurt by COVID-19, they have responded by developing new business models and innovating their business practices to maintain operations and keep their relationships with their employees.

Like other businesses, larger companies, having invested significantly in worker safety while maintaining staff, cannot continue to do so for the near-term without financial help. Millions of Canadian workers depend upon those companies for their incomes.

We have seen the federal government put together a number of positive programs like the Canada Emergency Response Benefit to help Canadians adapt to the economic impacts of COVID-19. Notably absent in these programs were liquidity measures to help larger companies and the significant economic benefits they bring to Canada.

The Canadian Chamber has repeatedly recommended the Government provide liquidity assistance to larger companies, which are undergoing economic stresses that are different from those smaller businesses face, but no less serious.

We will await specific details about how these programs will be administered, and we will also look to governments for tailored measures to meet the needs of specific sectors that are particularly hard-hit.

The Canadian Chamber welcomes the Large Employer Emergency Financing Facility (LEEFF) as a bridge financing measure for larger companies, which are critical not only to millions of Canadians they employ, but also the significant supply chains that they anchor across Canada.

The Canadian Chamber also welcomes the expansion of the Business Credit Availability Program (BCAP), which will provide financing support for mid-market businesses, including loans of up to $60 million per company, and guarantees of up to $80 million.

Today’s liquidity measures are a step forward towards addressing the needs of some of Canada’s leading companies, and help them continue their leadership role into the eventual recovery.”

About the Canadian Chamber of Commerce – Because Business Matters

The Canadian Chamber of Commerce helps build the businesses that support our families, our communities and our country. We do this by influencing government policy, by providing essential business services and by connecting businesses to information they can use, to opportunities for growth and to a network of local chambers, businesses, decision-makers and peers from across the country, in every sector of the economy and at all levels of government, as well as internationally. We are unapologetic in our support for business and the vital role it plays in building and sustaining our great nation.

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For more information, please contact:

Phil Taylor