Large Enterprise Tariff Loan (LETL)

Overview of the Large Enterprise Tariff Loan (LETL) program:

The LETL Facility, launched on March 21, 2025, by the Government of Canada, offers financing to large Canadian enterprises affected by new tariffs and trade countermeasures that face difficulty obtaining market financing. Managed by Canada Development Investment Corporation (CDEV) through its subsidiary Canada Enterprise Emergency Funding Corporation (CEEFC), the program provides loans designed to cover an eligible enterprise’s 36-month liquidity and operational needs after all other funding options have been explored. This facility ensures that large Canadian employers can maintain domestic operations, preserve jobs, and stabilize financially during trade disruptions. The LETL loans are interest-bearing and commercial in nature, with both secured and unsecured components, and are assessed case-by-case based on demonstrated need and repayment capacity. Borrowers must have a plan to return to financial stability, sustain Canadian business activities, and align with climate and governance transparency expectations, including annual climate-related financial disclosures by June 2026. The LETL Facility serves as a safety net for viable large-scale enterprises essential to Canada’s economic fabric, allowing them to bridge temporary liquidity gaps and continue contributing to national employment and production until traditional financing becomes accessible again.

Benefits of the Large Enterprise Tariff Loan (LETL) program:

• Minimum loan: $30 million.
• Loans are assessed based on each applicants demonstrated 36-month liquidity and operational needs.
• Loans can be advanced quarterly during a 36-month availability period.
• Interest terms:
• Unsecured portion (75%): Term CORRA (3 months) + 200bps; increases by 200bps per annum (max +1000bps). Interest may be paid in kind for the first two years.
• Secured portion (25%): Matches the borrowers existing secured debt rate.
• Loan term: 7 years for the unsecured facility; the secured portion aligns with the borrowers existing secured term debt.

Eligibility criteria of the Large Enterprise Tariff Loan (LETL) program:

• Eligible applicants must:
• Be large, for-profit Canadian enterprises operating in any sector.
• Have annual Canadian revenue of approximately $150 million or more.
• Require a minimum loan of $30 million.
• Have significant Canadian operations or workforce.
• Demonstrate solvency as of December 31, 2024 (no insolvency filings).
• Have exhausted other traditional financing sources.
• Be commercially viable prior to tariff impacts.
• Commit to retaining domestic employment and maintaining Canadian operations.
• Not have been convicted of tax evasion or be a public institution, politically owned entity, or organization promoting violence or discrimination.
• Provide an officers attestation of financial condition and a plan for financial recovery and domestic reinvestment.
• Demonstrate compliance with collective bargaining agreements and pension obligations.
• Commit to publishing annual climate-related financial disclosures by June 2026.