The Canadian government has announced new measures to support small businesses during the ongoing COVID-19 pandemic. The announcement was made by Prime Minister Justin Trudeau on Friday, April 16th.
The new measures include an extension of the Canada Emergency Wage Subsidy (CEWS) until September 2021. This subsidy covers up to 75% of an employee’s wages for eligible businesses that have experienced a decline in revenue due to the pandemic. The extension will provide businesses with more certainty and support as they navigate the ongoing challenges of the pandemic.
In addition, the government is also introducing a new Canada Recovery Hiring Program (CRHP). This program will provide eligible employers with a subsidy of up to 50% on the incremental remuneration paid to employees between June 6th and November 20th, 2021. This will encourage businesses to hire more workers as the economy begins to recover.
Furthermore, the government is proposing to expand the Canada Recovery Benefit (CRB) to provide support to those who are self-employed or have gig jobs. This will ensure that these individuals have access to the same support as those who are eligible for Employment Insurance (EI).
Prime Minister Trudeau also announced that the government will be extending the deadline for businesses to apply for the Canada Emergency Business Account (CEBA) until June 30th, 2021. This program provides interest-free loans of up to $60,000 to small businesses and not-for-profits, with 25% of the loan being forgivable if repaid by the deadline.
The government is also proposing to increase the maximum wage subsidy rate to 75% for the period of March 14th to June 5th, 2021. This will provide additional support to businesses that have been hardest hit by the pandemic.
In his announcement, Prime Minister Trudeau emphasized the importance of supporting small businesses, stating that they are the backbone of the Canadian economy and play a crucial role in creating jobs and driving growth. He also acknowledged the ongoing challenges that businesses are facing and reassured them that the government will continue to provide support.
These new measures are part of the government’s commitment to helping businesses and individuals weather the impacts of the pandemic. The government will continue to monitor the situation and make adjustments as needed to ensure that Canadians have the support they need during these challenging times.
