On October 9, the Government of Canada announced additional supports for businesses affected by COVID-19, including targeted support specifically for the hardest hit businesses. The Canadian Chamber of Commerce stated that they think the announcement is promising, however it falls short of some of our recommendations.
The new supports include a 65% wage subsidy to December, a new rent support program and an expansion of the CEBA. Technical details on a number of fronts are yet to be released. We have called for programs to be implemented on an immediate basis.
- The new Canada Emergency Rent Subsidy, which would provide rent and mortgage support until June 2021
- A top-up Canada Emergency Rent Subsidy of 25 per cent for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 per cent subsidy.
- The extension of the Canada Emergency Wage Subsidy until June 2021
- An expanded Canada Emergency Business Account (CEBA), which would enable access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000.
READ the full announcement from the federal government.
Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce, released a statement in response to the Government’s announcement on expanded business supports that includes this statement:
"While up to $10,000 of this additional $20,000 is forgivable, businesses facing virtually no revenues cannot continue to responsibly participate in loan programs. Broader forgiveness needs to be discussed."
READ the statement from the CCC.