Feds offer new COVID-19 relief measures for small businesses

Canada’s federal government has announced new relief measures for small and medium-size business owners during the COVID-19 crisis.

The measures 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, the government said, and will allow companies to keep the money they would have sent to the government and use it instead for immediate needs.