Thursday April 16, 2020 ~ NATIONAL
~ West Shore Voice News
The federal government has adjusted their supports for business. This will help more businesses, but not all. Very small businesses and those that are home-based could still be missed by these programs.
“Small businesses are the backbone of our economy, and are vital for our families and communities across the country,” it was stated today in a release from the Prime Minister’s office.
“They are facing economic hardship and uncertainty during the COVID-19 pandemic. That is why the Government of Canada is working around the clock to give these businesses the support they need so they can continue to make our country strong at this critical time.”
Prime Minister Justin Trudeau today announced new measures to support Canadian businesses so they can keep their doors open and their employees on the job.
Said Trudeau today in Ottawa: “A few weeks ago, we launched the Canada Emergency Business Account to help small businesses struggling with cash flow. Under this program, banks are offering $40,000 loans, which are guaranteed by the government. To date, more than 195,000 loans have been approved. We’re talking about more than seven and a half billion dollars in credit to small and medium-sized businesses. It’s a start, but Minister Ng and others have heard from business owners who could really use this help, but who do not fit the current admissibility criteria. So we’re gonna make some adjustments because we want to be there to support you.”
The Government of Canada is:
- Expanding the Canada Emergency Business Account (CEBA) to businesses that paid between $20,000 and $1.5 million in total payroll in 2019. This new range will replace the previous one of between $50,000 and $1 million, and will help address the challenges faced by small businesses to cover non-deferrable operating costs. Since the launch of the CEBA on April 9, 2020, more than 195,000 loans have been approved by financial institutions, extending more than $7.5 billion in credit to small businesses.
- Announcing its intent to introduce the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June. Implementation of the program will require a partnership between the federal government and provincial and territorial governments, which are responsible for property owner-tenant relationships. We are working with the provinces and territories to increase rent support for businesses that are most impacted by the pandemic and we will have more details to share soon.
“These measures are part of the Government of Canada’s COVID-19 Economic Response Plan, which has committed more than $107 billion in support to Canadians and businesses facing hardship as a result of the pandemic.”
The government says it “will continue to monitor and respond to the wide-ranging impacts of COVID-19, and take additional actions as needed to protect the health and safety of Canadians and stabilize the economy.”