By Chris Brown

Update from the PM

Trudeau announces aid for big businesses with strings attached

May 11, 2020 | 9:41 AM

The federal government has moved to the next phase of its aid program to help Canada through the COVID-19 pandemic, this one aimed at mid-sized and large businesses.

The Business Credit Availability Program is being expanded to mid-sized companies with a greater need for capital, Prime Minister Justin Trudeau said on Monday.

He said Export Development Canada and the Business Development Bank of Canada private lenders will work to “free up access to capital in the tens of millions for Canadian companies in every industry and in all regions across Canada.”

The federal government is also establishing a large employer emergency financing facility to “provide bridge financing for our largest employers” if they can’t obtain financing elsewhere.

“But let me be clear – these are bridge loans, not bailouts,” said Trudeau, adding this will help large employers weather the storm and protect millions of jobs across the country.

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The plan will be guided by principles of avoiding bankruptcies, fairness across industries and sectors across the country and accountability.

“Any company that receives this support will be expected to make and keep certain commitments, the prime minister said.

“Those include maintaining jobs and investment, respecting collective agreements and pension obligations and environmental and climate commitments,” he said. “In particular there will be strict limits on dividends, share buybacks and executive compensation.”

Trudeau said any company applying will need to share its complete financial structure with the government so it can guard against tax avoidance.

When asked about monitoring the executive pay, he said details will be announced in the future. He added that “We need to make sure the money is going to support workers every step of the way.”

At his daily address outside Rideau Cottage, Trudeau said everyone wants to get their lives back to something that resembles normal.

“We’re not out of the woods yet, and we can not squander the sacrifices we’ve made over the past two months,” he said. “So when in doubt, if you can, stay home, avoid gatherings, wash your hands frequently and thoroughly and maintain two metres’ distance from everyone else.”

“This is how we will keep fellow Canadians who can’t stay home those who are working on the frontlines safe.”

On how confident he is about testing and the planned reopenings across the country, Trudeau said more testing is needed.

“As we reopen it’s important that we have strong testing protocols right across the country. We need to see more lab capacity opening up.”

Trudeau said all governments are feeling pressure to get reopening right and that everything could go up in smoke if the wrong decisions are made.

“That’s why being cautious and gradual and vigilant is essential for how we move forward. We’ll be held to account if reopening happens too quickly and Canadians have to lockdown once again in a few weeks because people were overeager … we have to get that balance right and that means being cautious.”

He added the government will stay open and flexible on the programs announced and that “every step of the way, we will do what is necessary to protect Canadians and to ensure that we have an economy to go back to.”

As of Monday morning, Canada had 69,156 confirmed cases, zero probable cases and 4,906 deaths. There have been 1,119,026 Canadians tested.

In Alberta, there are 6,253 cases and 117 deaths. A total of 173,023 Albertans have been tested.