Innovation Minister Navdeep Bains claims a loan that is federal little-loved by industry may be among the list of choices Ottawa weighs because it sits straight down with flight professionals to negotiate a federal government help package.

The big Employer Emergency Financing center (LEEFF) could play an integral part in raising providers from the serious economic straits brought on by the pandemic, Bains said at a news meeting Monday.

This program offers loans of $60 million or higher to large organizations dealing with money issues, but is sold with mortgage loan that jumps to eight % from five per cent following the very first 12 months — far above typical private-sector financing rates.

Only two companies have now been authorized for LEEFF loans because the Liberals announced the system may 11, based on the Canada Enterprise crisis Funding Corporation: a casino business and a producer of metallurgical coal.

Teams which range from the federal Conservatives to Unifor, a union representing 15,000 aviation workers, have criticized this system because of its working limitations and high rate of interest.Continue reading→