OTTAWA — Mid-sized Canadian companies which are strapped for cash due to COVID-19 can now apply by their very own banks to get loans of as much as $60 million from the federal authorities.
The loans, to be administered by the Enterprise Growth Bank of Canada, are a part of a package deal of federal credit score packages Finance Minister Invoice Morneau promised in late March.
Firms within the oil trade which are dealing with significantly robust instances due to plummeting oil costs have been ready anxiously to see the phrases of the loans, however this system is open to firms from any financial sector so long as they meet the qualifying phrases.
That features firms with revenues between $100 million and $500 million who had been financially viable earlier than the pandemic, however noticed their operations negatively affected by the financial shutdown or falling oil and fuel costs.
loan quantities will fall between $12.5 million and $60 million, with the Enterprise Growth Bank of Canada protecting 90 per cent and an organization’s personal monetary establishment the remaining.
Ben Brunnen, the vice-president of fiscal and financial coverage for the Canadian Affiliation of Petroleum Producers mentioned this week the packages had the potential to assist struggling firms however that there was frustration and nervousness within the oil sector at how lengthy it was taking to start.
This report by The Canadian Press was first printed June 18, 2020.
The Canadian Press