The Canadian Chamber of Commerce issued a statement following the information on several important changes to the wage subsidy program that will help more businesses access funding.
- A business will now be able to compare its revenue to the same month last year OR an average of January and February 2020. This will help new and growing firms who may not have qualified based on a comparison to the same month in 2019.
- A business needs only to demonstrate a 15% reduction in gross revenues for March. A 30% reduction will still be required to receive the subsidy in April and May.
- The program will now allow businesses to use either accrual or cash accounting methods.
- Employer paid Employment Insurance (EI), Canada Pension Plan (CPP), Quebec Pension Plan (QPP) and Quebec Parental Insurance Plan premiums will be reimbursed.
- Registered charities and not-for-profit organizations are eligible employers to apply for the wage subsidy. They also have the choice of whether or not to include government funding in their revenue calculations.
- Businesses can start applying for interest-free loans on April 9. Applications are available through local financial institutions.
While these are positive changes, the Canadian Chamber continues to focus on the importance of getting funds to businesses in days, not weeks.