75% Wage Subsidy and Interest-Free Loans Announced by Federal Government for COVID-19
Friday, March 27 – The Government of Canada has just announced a significant increase to the COVID-19 supports announced previously, including a 75% wage subsidy and interest-free loans for small businesses.
This is a very significant announcement for our business community and the the Burnaby Board of Trade applauds the federal government for this announcement.
The Burnaby Board of Trade has been working tirelessly to push the federal government to move quicker and act bolder in supporting our business community during this crisis. From daily calls with the federal small business ministry, to direct advocacy with government MPs and with federal NDP leader Jagmeet Singh, to raising the issue repeatedly in the media, we have not stopped representing your interests, bringing you the very latest information, and fighting for your businesses.
Details are yet to be announced on these new programs, but we will share those with you as soon as they are available. We will also continue our engagement with the federal government to ensure the roll-out is quick, and helps as many businesses as possible.
75% Wage Subsidy
The wage subsidy will apply to wages payable back-dated to March 15. Eligibility criteria and caps per business/per employee have not been announced.
The new “Canada Emergency Business Account” will provide interest-free loans of up to $40,000 to qualifying small businesses. The qualifications and eligibility have not yet been announced. These loans will be provided by financial institutions, and guaranteed by the federal government.
If certain criteria are met by the businesses, up to $10,000 of this loan will be forgiven and will not need to be repaid.
Remittance of GST to the federal government is being deferred for businesses until June. This will help maintain cash flow in many businesses as it equals $30 billion in deferrals. This is also applied to import/export duties owed.
The government will provide an additional $12.5 billion in funding to support the Business Credit Availability Program through BDC and EDC, to provide operating loans to businesses.