Trudeau Announces Additional Supports for Small Businesses

Prime Minister Justin Trudeau announced additional new measures to support small businesses dealing with the economic impacts of the pandemic. These measures will provide a 75% wage subsidy for qualifying businesses retroactive to March 15, 2020.

“Small businesses are the backbone of our economy, and an important source of good jobs across the country.  They are facing economic hardship and certainty during the COVID-19 pandemic,” Prime Minister Justin Trudeau said.  Other changes include:

• Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.
• Launch the new Canada Emergency Business Account. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero per cent interest rate, so they can pay for rent and other important costs over the next number of months.
• Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.

Opposition React to 75% Wage Subsidy

Conservative Leader Andrew Scheer credited the government for taking his advice he says he made last Saturday.  “Today, they took my advice,” Scheer said on Twitter.  Conservatives are also pushing for a GST refund for small businesses dating back six months.  The changes currently allow for a deferral of all Goods & Services Tax (GST) payments until June.

NDP Leader Jagmeet Singh was pushing for the 75% wage subsidy in a letter he’d sent to Trudeau.  “Workers need this measure to protect their jobs and employers need this measure to protect their businesses,” he said in the letter.