The Large Enterprise Tariff Loan Facility (LETL) is now open for applicants as the Government of Canada announces a slew of new measures for Canadian businesses and entities affected by the tariff dispute between Canada and the United States (US)
“We’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on US suppliers.”
François-Philippe Champagne
The facility is managed by the Canada Development Investment Corporation (CDEV) through its Canada Enterprise Emergency Funding Corporation (CEEFC) subsidiary.
CEEFC was formed in 2020 to provide bridge financing to large Canadian employers affected by COVID-19, and will now support Canadian enterprises having trouble accessing traditional financing due to US tariffs and Canada’s countermeasures.
According to the CEEFC, LETL-eligible companies require a minimum loan of $60 million, and have either “significant operations” or a “significant workforce” in Canada, plus more than $300 million in annual Canadian revenue.
Large for-profit enterprises in all sectors, and certain not-for-profit enterprises, can apply for funding under the LETL facility.However, applicants must commit to minimizing the loss of employment, sustaining their business activities in Canada, and demonstrating that the funding supports a transition plan to return to financial stability. More application details are on the CEEFC website.
BetaKit has asked the Department of Finance how much funding is available to be deployed from the LETL, but did not hear back by press time.
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Prime Minister Mark Carney first raised the creation of a new financing facility for businesses when he met with provincial and territorial premiers on March 21 to discuss strengthening the Canadian market amidst the US tariff conflict. That same day, Carney also met with the leaders of the National Indigenous Organizations to double the Indigenous Loan Guarantee Program from $5 billion to $10 billion and open it up to sectors outside of energy and natural resources.
In addition to LETL, the federal government has announced a remission framework for automakers, allowing them to import a certain number of US-assembled vehicles into Canada free of countermeasure tariffs, provided the company continues to produce vehicles in Canada.
The government also said it intends to provide a temporary six-month relief for goods imported from the US that are used in Canadian manufacturing, processing and food and beverage packaging, and those that support public health, health care, public safety, and national security.
“Today, we’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on US. suppliers,” Finance Minister François-Philippe Champagne said of the measures in a statement. “This will help make our economy stronger and more resilient.”
When US tariffs first went into effect in early March, the Government of Canada unveiled a $6-billion relief package to help affected businesses access financing and support. Measures included a $5-billion Trade Impact Program for Export Development Canada (EDC), $1 billion in new financing through Farm Credit Canada, and $500 million in new loans through the Business Development Bank of Canada (BDC).
Feature image courtesy François-Philippe Champagne via LinkedIn.