Toronto, September 29, 2025 – Today, Canada Development Investment Corporation, through its subsidiary, Canada Enterprise Emergency Funding Corporation (CEEFC), announced the first loan under the Large Enterprise Tariff Loan (LETL) facility to protect Canadian jobs and strengthen strategic industries.
This inaugural loan will provide Algoma Steel Inc. (Algoma) with access to $400 million in liquidity. Based in Sault Ste. Marie, Ontario, Algoma is an integrated steel producer that provides approximately 2,500 full-time jobs. The Government of Ontario is contributing an additional $100 million under the same terms for a total support of $500 million.
The objective of this transaction is to help stabilize a major Canadian player in the competitive global steel industry, amid current tensions in the global steel trade.
As announced by the Government of Canada on September 5, 2025, the LETL facility has been updated to expand eligibility and provide lower cost financing to all industries.
The new terms and conditions of the facility are as follows:
• The minimum annual revenue requirement is reduced from $300 million to $150 million.
• The minimum loan size is reduced from $60 million to $30 million.
• The loan size, structured to support liquidity, extends from one to three years.
• The loan maturity is extended from 5 to 7 years.
• The initial interest rate is reduced.
• CEEFC has an ability to participate in equity, up to 20% of the loan value or 20% of the market cap.
Under these new conditions, proponents are still required to prioritize worker retention.
Companies interested in applying for the LETL facility can assess their eligibility and submit an enquiry form to CEEFC via the CEEFC website at https://ceefc-cfuec.ca/
Quick facts
• Established in 2020 by CDEV, CEEFC currently manages the Large Employer Emergency Financing Facility (LEEFF) program in response to the economic impact of the COVID-19 pandemic and the Large Enterprise Tariff Loan (LETL) facility to support large Canadian enterprises affected by actual or potential tariffs and countermeasures.
• The LETL facility was launched on April 15, 2025. On July 16, 2025, the Government of Canada announced that the program will be updated to expand eligibility and provide lower cost financing to firms in the steel industry. On September 5, 2025, the Government of Canada announced that additional flexibility will be provided through the LETL facility to all industries.
• CDEV provides the Government of Canada with specialized financial advisory around the country’s most complex and diverse commercial interests. For over 40 years, CDEV, a federal Crown corporation reporting to the Minister of Finance, has been the entity of choice for critical financial transaction needed to help Canada achieve its goals and maximize the value of government corporate assets.