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 announced that the Canada Emergency Wage Subsidy (CEWS) will be extended until June 2021. The subsidy, which covers up to 75% of an employee’s wages, was set to expire in December 2020.
Trudeau also announced that the government will be implementing a new rent subsidy program for businesses that have seen a decline in revenue due to the pandemic. The program will cover up to 65% of eligible expenses for businesses, including rent and property taxes, for the period of September 27 to December 19, 2020.
The prime minister emphasized the importance of supporting small businesses, stating that they are the backbone of the Canadian economy and have been hit hard by the pandemic. He also acknowledged that the second wave of the virus is causing further economic challenges for these businesses.
In addition to the wage and rent subsidies, the government will also be providing additional support for businesses in the tourism and hospitality sectors, which have been particularly impacted by the pandemic. This includes a new program to help businesses cover fixed costs such as rent and utilities, as well as an extension of the Canada Emergency Business Account (CEBA) to provide interest-free loans of up to $20,000.
Trudeau also announced that the government will be expanding the eligibility criteria for the Canada Emergency Business Account to include businesses that have been operating through personal bank accounts or have been using a personal credit card for business expenses.
The prime minister urged businesses to take advantage of these programs and emphasized that the government will continue to support them as long as necessary.
The announcement was welcomed by business groups, with the Canadian Federation of Independent Business (CFIB) stating that the extensions and new measures will provide much-needed relief for struggling businesses.
The government’s latest measures come as Canada is experiencing a surge in COVID-19 cases, with many provinces implementing stricter measures to curb the spread of the virus. The prime minister acknowledged that the road to recovery will be long and challenging, but reiterated the government’s commitment to supporting Canadians through this difficult time.
The new measures are expected to cost the government an additional $20 billion, bringing the total cost of COVID-19 support programs to over $200 billion. However, Trudeau stated that the government’s priority is to support Canadians and businesses during this crisis, and that the cost of inaction would be much higher.
The government will continue to monitor the situation and make adjustments to the support programs as needed. Canadians can stay updated on the latest developments by visiting the government’s COVID-19 website or by contacting their local government representatives.
