Today the federal government announced the Large Employer Emergency Financing Facility (FEEFF) program aimed at helping retailers with larger financing needs access loans and to avoid bankruptcies, whose needs during the pandemic have not been met through conventional financing. The program is applicable for retailers who have annual revenues of $300 million or more and are seeking financing of $60 million or more.
There will be strict rules to access funding, such as disclosing financial records, limiting stock buybacks, rules on bonuses, etc. Retailers hoping to access this credit will also need to make certain commitments, such as keeping jobs and investments, respecting collective bargaining agreements, pension obligations, and sustainability initiatives.
Also announced today was an expansion of the Business Credit Availability Program (BCAP) to medium-sized retailers and businesses with larger financing needs. Through the BCAP, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), will work with private sector lenders to support access to capital for Canadian businesses in all sectors and regions.
RCC is seeking clarity on the program details and will provide information as soon as it is available.