The Canadian government has announced new measures to support small businesses and workers affected by the ongoing COVID-19 pandemic.
In a press conference on Monday, Prime Minister Justin Trudeau outlined the details of the new measures, which include an extension of the Canada Emergency Wage Subsidy (CEWS) until June 2021 and an increase in the maximum subsidy rate from 65% to 75%.
The CEWS, which was originally set to expire in December 2020, provides financial support to businesses to help them keep their employees on payroll during the pandemic. The extension will provide businesses with more certainty and stability as they navigate the ongoing economic challenges.
In addition to the extension, the government also announced changes to the eligibility criteria for the CEWS. Starting in December, businesses will only need to demonstrate a revenue decline of 15% in order to qualify for the subsidy, compared to the previous requirement of 30%.
The government also announced an increase in the maximum subsidy rate from 65% to 75%, which will provide businesses with more support as they continue to face financial difficulties due to the pandemic.
In his statement, Prime Minister Trudeau emphasized the importance of supporting small businesses and workers during this challenging time. He stated, “Small businesses are the backbone of our economy and the heart of our communities. We need to do everything we can to help them get through this crisis and come out stronger on the other side.”
The government also announced an extension of the Canada Emergency Rent Subsidy (CERS) until June 2021. The CERS provides rent and mortgage support to businesses, charities, and non-profits that have been impacted by the pandemic. The extension will provide businesses with more time to access this support and help them keep their doors open.
In addition to these measures, the government also announced an increase in the maximum loan amount available under the Canada Emergency Business Account (CEBA) from $40,000 to $60,000. This will provide small businesses with more financial support to help them cover their expenses and keep their operations running.
The government’s announcement has been met with positive reactions from business organizations, who have been calling for an extension of the CEWS and other support measures. However, some critics have raised concerns about the effectiveness of these measures and the need for more targeted support for industries that have been hit the hardest by the pandemic.
As the pandemic continues to impact the Canadian economy, the government’s new measures aim to provide much-needed support to small businesses and workers. The extension of the CEWS and other support programs will help businesses stay afloat and protect jobs, as the country works towards economic recovery.
