Breaking News: Trudeau announces government will pay 75% of wages for small and medium-sized businesses
In a major boost to small and medium-sized businesses, the Prime Minister, Justin Trudeau, announced today the that the federal government will cover 75% of wages for qualifying businesses, backdated to March 15.
Trudeau stated that the previous announcement last week of a 10% subsidy will not be enough. This updated measure, along with more necessary support for small businesses dealing with the economic impacts of the pandemic will help Canadian businesses protect the jobs that Canadians depend on.
“We’re helping companies keep people on the payroll so workers are supported and the economy is positioned to recover from this. That is our priority.”
- Justin Trudeau
The government’s COVID-19 Economic Response Plan, which already commits $107 billion in support to Canadians through this difficult time, will now include further support to small businesses in the following measures:
- Announce a 75% wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020
- Allow businesses, including self-employed individuals, to defer all (GST/HST) payments until June, as well as customs duties owed for imports until June 2020. This is the equivalent of giving $30 billion in interest free loans to businesses.
- Launch the new Canada Emergency Business Account, providing up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. This new measure will offer $40,000 loans which will be gauranteed by the government to qualifying businesses. The loans will be interest free for the first year, and for businesses that meet certain conditions, $10,000 of the loan will be forgivable.
- Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19.
These new investments will help Canada’s financial institutions provide the credit and liquidity options that a range of Canadian businesses need immediately.
More information and details are expected to come after the weekend.
Read the Prime Ministers announcement on the official government website.
Sarah Visca is the Operations Manager at ConnectsUs HR, a company that provides tools & resources to quickly set up a Human Resources department.
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