On September 25, 2020, the Canada Enterprise Emergency Funding Corp. (CEEFC) announced its first loan under the Large Employer Emergency Financing Facility (LEEFF). The agreement provided Gateway Casinos & Entertainment Limited with access to $200 million of liquidity.
Other applications for LEEFF financing are currently under consideration. To protect the financial interests of taxpayers, rigorous due diligence is required.
LEEFF is intended to provide bridge financing to Canada's largest employers, whose needs during the pandemic are not being met through conventional financing. It provides large Canadian employers with access to credit in order to preserve jobs and continue operations during this challenging period.
CEEFC will maintain an updated list of approved LEEFF loans, which can be found here. Key terms of the LEEFF loan facility can be found here.
"LEEFF was created to provide bridge financing to Canada's largest employers whose needs during the pandemic are not being met through conventional financing, and to help protect Canadian jobs during a period of unprecedented challenges and uncertainty," David Mansell, the CEO of Canada Enterprise Emergency Funding Corp., has been quoted as saying. "With this first loan, we are supporting thousands of Gateway employees and their families by providing the company with the liquidity it needs to begin to resume operations and return to profitability."
"COVID-19 closed businesses across Canada, with the hospitality and entertainment sectors severely affected. It hit our employees and their families and communities hard. The LEEFF financing will support restarting our operations and returning people to work when it is safe and viable to do so," Anthony Santo, the CEO of Gateway Casinos & Entertainment Limited, has been quoted as saying. "We are appreciative of the LEEFF program and, through a successful and sustainable restart of operations, we will bring jobs back and begin the work of repaying the LEEFF facility."
Since the beginning of the COVID-19 pandemic, the Government of Canada has taken action to protect jobs and promote economic growth.
For additional information, click here.
(With files from the Canada Enterprise Emergency Funding Corporation)