June 30, 2021
LEEFF loan to Porter Airlines protects Canadian jobs
Today, the Canada Enterprise Emergency Funding Corporation (CEEFC) announced a new loan under the Large Employer Emergency Financing Facility (LEEFF). The agreement will provide a repayable loan to Porter Airlines (Porter) to restart operations and support jobs in Canada’s airline sector.
Porter will receive loan financing of $250 million through LEEFF. As a condition of the loan, Porter has agreed to provide refunds for certain pandemic-related flight cancellations to eligible customers. An additional $20 million in financing will be provided to Porter for this purpose. Customers will be able to request refunds by August 29, 2021.
As a part of this agreement, Porter has committed to maintaining jobs and honouring collective agreements and pension benefits. Porter has also agreed to place restrictions on executive compensation, dividends, and share buybacks.
LEEFF loans provide bridge financing to Canada’s largest employers whose needs during the pandemic are not being met through private market financing. The program provides large Canadian employers with access to credit to preserve jobs and continue operations during this recovery period.
Other applications for LEEFF financing are currently under consideration. To protect the financial interests of taxpayers, rigorous due diligence and the collaboration of existing lenders is required.
Quick facts
- LEEFF is open to all large, for-profit Canadian employers who have a significant impact on Canada’s economy and provide millions of jobs to Canadians. Companies in the financial sector are not eligible for LEEFF. In order to qualify for LEEFF, a company must have more than $300 million of annual revenues and require a loan of at least $60 million. Certain not-for-profit enterprises, such as airports, may also be eligible. Any company that has been found guilty of tax evasion is not eligible.
- Companies that receive financing through LEEFF are required to commit to publishing annual climate-related disclosure reports consistent with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures, including how their future operations will support environmental sustainability and national climate goals.
- Companies must agree to sustain their domestic operations, make reasonable commercial efforts to minimize the loss of jobs, and demonstrate a clear plan to return to financial stability.
- Key terms of LEEFF can be found at https://www.ceefc-cfuec.ca/leeff-factsheet/.
- A list of approved LEEFF financing can be found at https://www.ceefc-cfuec.ca/approved-loans/.
For media inquiries please contact: Canada Enterprise Emergency Funding Corporation, Media Relations Team, media@ceefc.cfuec.ca