Trudeau Announces New Measures to help Small, Medium Size Businesses

Prime Minister Justin Trudeau announced new measures to help small, and medium sized businesses battle the COVID-19 pandemic.  “Many Canadian businesses are facing economic hardships and uncertainty during the COVID-19 pandemic,” Trudeau said.

The federal government has committed another $1.7 billion in targeted measures including the following:

• $675 million to give financing support to small and medium-sized businesses that are unable to access the government’s existing COVID-19 support measures, through Canada’s Regional Development Agencies.
• $287 million to support rural businesses and communities, including by providing them with much-needed access to capital through the Community Futures Network.
• $500 million to establish a COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations to help address the financial needs of affected organizations within these sectors so they can continue to support artists and athletes. This measure is consistent with the government’s other existing COVID-19 support measures for wages and fixed costs for organizations.
• $250 million to assist innovative, early-stage companies that are unable to access existing COVID-19 business support, through the National Research Council of Canada’s Industrial Research Assistance Program.
• $20.1 million in support for Futurpreneur Canada to continue to support young entrepreneurs across Canada who are facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.

Trudeau also announced new job creation measures to sectors that are hardest hit by the pandemic. Those measures include the following:

• provide up to $1.72 billion, including funding to the governments of Alberta, Saskatchewan, and British Columbia, and the Alberta Orphan Well Association, to clean up orphan and/or inactive oil and gas wells – creating thousands of jobs and having lasting environmental benefits.
• provide up to $750 million to create a new proposed Emissions Reduction Fund to reduce emissions in Canada’s oil and gas sector, with a focus on methane. This fund will provide primarily repayable contributions to conventional and offshore oil and gas firms to support their investments to reduce greenhouse gas emissions. Of this amount, $75 million will be allocated to the offshore sector.
• expand eligibility for the new Business Credit Availability Program announced on March 13, 2020, to help Canadian businesses get the financing they need during this period of uncertainty. The support will be available to medium-sized businesses with larger financing needs, beginning with companies in Canada’s energy sector, to help them maintain operations and keep their employees on the job.

“We are working in close consultation with all impacted businesses across the country to take action where it is required, and are preared to take further actions as necessary,” Finance Minister Bill Morneau said.