What Trudeau is offering small businesses struggling amid COVID-19

PHOTO: Justin Trudeau/via Wikimedia Commons

TORONTO — Small and medium business owners and entrepreneurs got a boost from Prime Minister Justin Trudeau on March 27 as he handed more out relief for companies grappling amid COVID-19.

The measures he announced include:

Wage subsidies:

The federal government will cover 75% of salaries for workers of qualifying small businesses affected by COVID-19, an increase from the 10% announced previously. The subsidy, which will be backdated to March 15, gives companies who have asked employees to stop or reduce working help in continuing to pay staff.

Loans:

The government has launched the Canada Emergency Business
Account, which will involve banks soon providing government-guaranteed loans of up to $40,000 for small businesses.
Those loans will be interest-free for the first year and up to $10,000 could be waived for repayment.

The government will also make another $12.5 billion in loans available through Export Development Canada and the Business Development Bank of Canada to help small- and medium-sized businesses with operational cashflow requirements.

Taxes:

GST and HST payments will be deferred as well as duties and taxes owed on imports until June. These moves are equivalent with giving $30 billion in interest-free loans to businesses, Trudeau said. This will allow companies to keep the money they would have sent to the government and use it instead for immediate needs.