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

Considerations made to keep Crofton drive-by birthday celebrations going

Trucks will tone it down or not use horns at all to bring some joy to kids and older folks

May weather all over the map in the Chemainus Valley

Dramatic departure from monthly normals seen over the last few years

North Cowichan Mayor assesses drive-by celebration situation in Crofton

Siebring says bylaw officer’s response to a complaint routinely done all the time

COVID-19 birthday drive-by celebrations snuffed out in Crofton

Bylaw officer visit with threats of a fine mean parade trucks taken off the road

Hot ticket: Tickets on sale tonight for drive-in theatre at Cowichan Exhibition

Fresh Air Cinema bringing Onward and The Lion King to the big screen at the Cowichan Exhibition

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Facing changes together: Your community, your journalists

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

Be cautious expanding COVID-19 bubble, Dr. Bonnie Henry tells B.C.

Senior homes stay off-limits as schools, businesses reopen

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

RCMP, coroner investigate ‘unexpected deaths’ on Salt Spring Island

Two dead, police say there is no risk to the public

Summer tubing ban on Cowichan River lifted

The Tube Shack opening on June 27

Most Read