Canada: LEEFF loan to Sunwing Airlines
To print this article, simply register or connect to Mondaq.com.
On February 1, 2021, the Canada Business Emergency Financing Corporation (CEEFC) announced a new loan under the Large Employer Emergency Financing Facility (LEEFF). The deal gives Sunwing Vacations Inc. and Sunwing Airlines Inc. access to $ 375 million in cash to protect jobs in Canada’s airline industry.
Sunwing Airlines Inc. and Sunwing Vacations Inc. together provide nearly 3,000 Canadians with full-time jobs. Sunwing has agreed to maintain an account with money received from customers for trips that have been canceled due to the COVID-19 pandemic. This account will be maintained until the conclusion of broader government discussions with the airline industry and until a policy is established for the treatment of these prepaid amounts.
LEEFF loans provide bridge financing to Canada’s largest employers whose needs during the pandemic are not being met by private market financing. It provides large Canadian employers with access to credit to preserve jobs and continue to operate during the pandemic.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
POPULAR POSTS ON: Coronavirus (COVID-19) from Canada