BREAKING: Trudeau announces the Government will cover up to 75% of wages for small to medium size businesses and the Canada Emergency Business Account which offers a $40,000 loan, interest free for one year.
CANADA - Prime Minister Justin Trudeau announced new measures to support small businesses and entrepreneurs.
Trudeau says they understand that when money is not coming, you can't afford to keep your employee's on the payroll. This is why the Government of Canada is increasing their support to help businesses pay employee's during the COVID-19 pandemic.
"Last week, we had announced that we would cover 10 percent of wages, but it is clear that we need to do more, much more, so we are increasing that to up to 75 percent for qualifying businesses. This means that people will continue to be paid, even though their employer has had to slow down or stop operations because of COVID-19. We are helping companies keep people on the payroll so that workers are supported and the economy is in position to recover from this."
The subsidy is for small and medium size businesses and will be back dated to Sunday March other. Trudeau adds that for people who lost their job or are self employed, the Canada Emergency Response benefit guaranteeing $2,000 a month for four months will still be available for you.
Trudeau also announced a Government loan for small to medium businesses.
"We also know that for small store front businesses, are struggling with cash flow right now, it is hard to raise money and make money in this climate. We are launching the Canada Emergency Business Account. With this new measure banks will start offering $40,000 loans, which will be guaranteed by the Government to qualifying businesses. The loan will be interest free for the first year and if you meet certain conditions, the loan will be interest free for the first year and $10,000 of it will be forgivable if you meet certain conditions."
The Government is also going to defer GST and HST payments, as well as duties and taxes owed on imports until June.