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

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

Island Health chief medical officer Dr. Richard Stanwick receives a first dose of Pfizer vaccine, Dec. 22, 2020. (B.C. government)
COVID-19: B.C. seniors aged 90+ can start to sign up for vaccination on March 8

Long-term care residents protected by shots already given

The Majagaleehl Gali Aks Elementary School in Hazelton is being shut down for a week by the Gitanmaax Band Council following a confirmation of a COVID-19 exposure there on Feb. 26. (Black Press Media File Photo)
COVID-19 exposure notice shuts down Hazelton school

Closure to last for one week and school is to be sanitized

Dave Livesey, right, has been elected as Telkwa councillor defeating Klaus Kraft (middle) and Erik Jacobsen. (Interior News composite photo)
Dave Livesey elected to Telkwa council

Livesey received 60 votes to Klaus Kraft’s 51 and Erik Jacobsen’s 34 in preliminary results

Smithers Local Health Area reported just one new case of COVID-19 from Feb. 14-20. (BC CDC graphic)
Local weekly COVID infections drop to one

The Smithers Local Health Area (Houston to Witset) reported a single case between Feb. 14 and20

A health care worker prepares to test a Coastal GasLink field worker for COVID-19. (Coastal GasLink photo)
Coastal GasLink begins COVID screening of pipeline workers

Construction is once again ramping up following Northern Health approval of COVID management plan

Langley resident Carrie MacKay shared a video showing how stairs are a challenge after spending weeks in hospital battling COVID-19 (Special to Langley Advance Times)
VIDEO: Stairs a challenge for B.C. woman who chronicled COVID-19 battle

‘I can now walk for six (to) 10 minutes a day’

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation, May 8, 2020. (B.C. government photo)
B.C.’s weekend COVID-19 cases: 532 Saturday, 508 Sunday, 438 Monday

Fraser Health still has most, eight more coronavirus deaths

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Attorney General David Eby speaks in the legislature, Dec. 7, 2020. Eby was given responsibility for housing after the October 2020 provincial election. (Hansard TV)
B.C. extends COVID-19 rent freeze again, to the end of 2021

‘Renoviction’ rules tightened, rent capped to inflation in 2022

Face mask hangs from a rear-view mirror. (Black Press image)
B.C. CDC unveils guide on how to carpool during the pandemic

Wearing masks, keeping windows open key to slowing the spread of COVID-19

Churches, including Langley’s Riverside Calvary Church, are challenging the regulations barring them from holding in-person worship services during COVID-19. (Langley Advance Times file)
Det. Sgt. Jim Callender. (Hamilton Police Service screenshot)
B.C. man dead, woman seriously injured after shooting in Hamilton, Ont.

The man was in the process of moving to the greater Toronto area, police say

(Black Press file photo)
Child in critical condition, homicide investigators probe incident near Agassiz

The child was transported to hospital but is not expected to survive

Most Read