Canadian Federation of Independent Business surveys small business confidence, in a March 25, 2020 story. (Photo by THE CANADIAN PRESS)

Trudeau announces 75% wage subsidy for small businesses amid COVID-19

This is up from the previously announced 10 per cent wage subsidy

Editor’s note: Since this article was published, the federal government has updated the wage subsidy program to encompass businesses and charities of all sizes. The new information is available here: Canada expands 75% wage subsidy to COVID-19 affected businesses of all sizes

Small businesses will now be able to receive up to 75 per cent in federal government funds in order to keep paying their employees during the COVID-19 pandemic – up from the previously announced 10 per cent subsidy plan.

During his daily news conference outside Rideau Cottage in Ottawa on Friday, March 27, Prime Minister Justin Trudeau announced a suite of new measures to support small business.

“Small business owners and entrepreneurs are the backbone of our economy and make our communities better places to live – but they’re facing difficult decisions and are worried about the coming months,” Trudeau said.

In addition, under the new Canada Emergency Business Account, storefront businesses will also qualify for up to $40,000 in loans which will be interest-free for one year, with up to $10,000 forgiven, he said. Business owners will have until June to pay GST and HST payments while taxes on imports will also be suspended.

Trudeau said that this is the equivalent of $30 billion in loans, interest free.

The subsidy is only available to Canadian-controlled private corporations or businesses who are paying salary, wages, bonuses or remuneration between March 18 and June 20. .

READ MORE: How to apply for employment insurance

“We hope these new measures will encourage employers who felt forced to lay off their employees to keep them on the payroll, and for those who did lay off their employees will hire them back,” he said.

Last week, during the unveiling of the $82 billion in relief to those hard hit by the COVID-19 pandemic, Trudeau announced a 10 per cent wage subsidy for businesses. On Friday, he said government officials have heard from business owners that that isn’t enough.

The increased subsidy will be retroactive to March 15. Finance Minister Bill Morneau wouldn’t confirm whether the wage subsidy would have a cap, saying more details will be rolled out soon.

The Canadian Chamber of Commerce called the subsidy boost “exactly what the doctor ordered.”

The announcements comes as the Bank of Canada implemented an unscheduled cut to its bechmark interest rate, bringing it down to 0.25 per cent.

Trudeau said further details on how the new supports will be implemented can be expected by Monday.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nine passengers on first flight after Campbell River airport reopens

Pacific Coastal flight 715 arrived from Vancouver on Tuesday morning

Danger tree removal work in progress along Sayward Highway 19

Delays up to 30 minutes expected between 7 a.m. to 1 p.m. on June 5

Zeballos approved for emergency preparedness funding to install generator

Under the Community Emergency Preparedness Fund, the village will receive $25,000 to install generator

Cortes Island affordable housing project hangs by a thread after SRD defers hearing

Regional decision makers resort to COVID-19 concerns despite virtual meeting option and push hearing to September

Gold River ready to welcome visitors and restart local businesses

In contrast to single-industry remote communities, Gold River’s diversified economy might help it better survive after reopening

March dental conference key to many of B.C.’s COVID-19 cases

Early infections from China, Iran were quickly contained

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Mirror business directory and map

If you’d like to be added to the list, shoot us an email

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

North Island recreation camping site closed due to vandalism

Damage happens every year, forcing site manager to reallocate improvement budget to repairs

Tla-o-qui-aht First Nation woman, 26, fatally shot by police in Edmundston, N.B.

Police were conducting a well-being check at the time of the incident

Seniors to receive up to $500 in promised COVID-19 emergency aid in early July

The Liberal government first promised the extra help in mid-May, but had to create a new system to deliver the aid

VIDEO: Revelstoke bear wanders into Animal House pet store

Staff got ready to chase it out with a broom

Man found dead in his tent at Island homeless camp

Facebook posts tell of personal struggles and attempts to stay clean and sober

Most Read