Large Canadian enterprise with significant operations in Canada or a significant Canadian workforce
Services
Large Enterprise Tariff Loan (LETL) Facility
$10B federal facility launched 2025, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC, a CDEV subsidiary), providing interest-bearing term loans for liquidity to large Canadian enterprises affected by US tariffs and countermeasures; new flexibilities added August 2026 (liquidity support to 36 months, loan term to 15 years).
Overview
$10B federal facility launched 2025, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC, a CDEV subsidiary), providing interest-bearing term loans for liquidity to large Canadian enterprises affected by US tariffs and countermeasures; new flexibilities added August 2026 (liquidity support to 36 months, loan term to 15 years).
Key numbers
| Item | Value |
|---|---|
| Instrument | loan |
| Level | federal |
| Region | Canada |
| Administrator | Canada Enterprise Emergency Funding Corporation (CEEFC), subsidiary of Canada Development Investment Corporation (CDEV) |
| Budget | $10,000,000,000 |
| Intake status | Open - applications accepted while the tariff situation persists |
| Non-US bias | Interest pricing rewards actual and potential exports to non-US markets; proceeds must support diversification |
Eligibility
Approximately $150 million or more in annual Canadian revenue
No going concern qualification in the most recent annual or interim financial statements (other than directly related to tariffs and countermeasures)
Has not filed for protection under bankruptcy or insolvency legislation
Must have sought to secure financing through traditional sources of market financing first
Not eligible
companies found guilty of tax evasion, certain public institutions, entities with significant ownership by political office holders, and entities promoting violence, incitement, or discrimination
What it covers
Interest-bearing term loans providing liquidity to cover 24-36 months of operating and liquidity needs after exhausting traditional financing
Working capital to sustain Canadian operations, maintain employment, and support a more sustainable, diversified business model
Loan advances in tranches (once per fiscal quarter during the availability period)
Employment plan and Buy Canadian commitments are conditions of the loan
Market and diversification rules
No market restriction, but interest rates factor in the degree of the borrower's actual and potential exports to non-US markets
Proceeds must primarily sustain operations in Canada, not fund operations or expenses outside Canada
Proceeds cannot refinance or repay existing debt, nor fund major acquisitions, expansion projects, or new ventures
Borrowers commit to a Buy Canadian policy prioritizing domestic suppliers and efforts to replace non-Canadian inputs
How to apply
Submit the enquiry form via the CEEFC website (ceefc-cfuec.ca)
CEEFC sends a non-disclosure agreement, application form, and instructions
Provide information on the applicant, current financial condition, and projected cash flow requirements
CEEFC assesses demonstrated need and the reasonableness of management's business plan assumptions on a case-by-case basis
Stacking notes
LETL loans complement other federal tariff support (BDC Pivot to Grow, Regional Tariff Response Initiative, Canada Strong Diversification Fund)
Availability of advances is subject to conditions precedent at closing and before each subsequent draw
Notes
Facility is $10B; launched 2025; delivered through CDEV via its subsidiary CEEFC
No minimum loan amount; loan size based on estimated cash needs net of available liquidity
Interest at least the Canada 10-year bond yield plus 25 basis points; term up to 10 years (raised to 15 years August 2026); liquidity support raised from 24 to 36 months August 2026
Conditions
no dividends/capital distributions, executive compensation limits, pension and collective agreement obligations; warrants up to a 20% voting interest may be required for public companies
Approved loans include Algoma Steel ($400M), C.A.T. North America ($90M), Millar Western ($100M), Arbec ($60M), and Conifex ($30M)
trade-help summary attributes LETL to ISED/BDC, but the operating administrator is CEEFC (a subsidiary of CDEV)
Relevant services
The services below are grant-eligible: CanExport and EDC reimburse up to 50% for incorporated Canadian exporters.
Book a free readiness call
Grant programs can reimburse up to 50% of eligible market-entry costs. In one free call we tell you honestly whether your product fits a non-US market.
Book a free readiness call