Good Afternoon All,
Prime Minister Justin Trudeau has announced a major increase to the wage subsidy for small- and medium-sized businesses, boosting it to 75 per cent, up from the 10 per cent previously promised.
This decision, to help “qualifying businesses” keep employees on staff, is being back-dated to March 15, with more information coming soon.
The federal government is launching a special emergency business account for small businesses that will see banks offer $40,000 government-guaranteed loans interest-free for the first year. If certain conditions are met, the first $10,000 will be forgiven.
As well, an additional $12.5 billion is being made available through federal programs, to help with “operational cash flow requirements,” and HST and GST payments are being deferred until June, giving businesses more time to make their payments.
Directing his remarks to small business owners and entrepreneurs, Trudeau said he knows the last few weeks have been “heartbreaking,” and the federal government realized much more help would be needed than initially committed.
“You’ve had to slow down your operations, in some cases you’ve even had to close up shop for the foreseeable future, and because money isn’t coming in, you can’t afford to keep your employees on the payroll. These are really tough decisions,” Trudeau said.
Across Canada, businesses have been rolling with a series of evolving restrictions as each province and territory operates in an emergency state, a “climate of uncertainty” as Trudeau said Friday.
The prime minister said he hopes these measures will allow employers to retain staff through this global pandemic, and help keep businesses afloat.
“I know many Canadians across the country are saddened to see their favourite neighbourhood spots closed, these are the places that make our communities feel like home,” Trudeau said.