UPDATES FROM YESTERDAY:
Our government is prepared to do whatever it takes to help small businesses and all Canadians get through this challenging time.
Yesterday, the Prime Minister announced that – as part of our government’s COVID-19 Economic Response Plan – we will provide up to $27 billion in direct support to Canadian workers and businesses, plus an additional $55 billion to support Canadian businesses and households through tax deferrals.
I want to thank you all for your valuable input and feedback over the past days and weeks – these measures are a direct response to what you’ve been telling us you need to get through this.
Whether you are self-employed, a small business owner, or an entrepreneur – you shouldn’t have to worry about losing your business or your job. These measures will help businesses with cash flow, will help employers keep employees on payroll, and help Canadians keep their jobs.
Our measures for businesses announced yesterday include:
- Essentially eliminating the payroll tax for three months by providing a 10% wage subsidy to small businesses – this will keep people employed;
- Helping businesses with cash flow by deferring tax payments until August 31st;
- Increase credit available to farmers through Farm Credit Canada.
- Introducing a new Emergency Care Benefit of up to $900 bi-weekly for up to 15 weeks for self-employed people who are not eligible for EI sickness benefits.
This is builds on our announcements earlier this week to help businesses:
- A coordinated approach with the financial sector: cutting interest rates to 0.75%, and major banks increasing lending capacity by $300 billion;
- Establishing a Business Credit Availability Program through BDC and EDC worth $10 billion – this means more short-term loans, working capital, and export insurance-credit so that more Canadian businesses are supported.
- Enhancing the Work-Sharing Program to help businesses pay wages so they don’t have to lay anyone off;
We also announced that Canada and the US are temporarily restricting all non-essential travel across our border. Essential travel will continue. We recognize it is critical to preserve supply chains between both countries to ensure things like food, fuel, and life-saving medicines reach people on both sides. People who must cross the border for work, and trucking will not be impacted by this new measure.
For more details on all measures announced including more support for workers, Indigenous peoples, and Canadians across the country: please see the Prime Minister’s News Release and Backgrounder.
WHERE TO START:
We understand that many Canadian business owners and entrepreneurs are anxious about how to get the help you need in the face of COVID-19. Here are a few good places to start:
- Visit our website for businesses for information about supporting your employees and your business. It will be constantly updated as the COVID-19 crisis evolve.
- Download the Canada Business App to find tailored supports to address your specific needs and questions about COVID-19.
- Consult the Canadian Chamber of Commerce’s pandemic preparedness guide to help prepare you business in the days and weeks to come.
- Contact your bank. Canada’s banks have made a commitment to support businesses and individuals through these difficult times in a responsible, fair, and compassionate way. To help provide some stability for businesses through this time of uncertainty, the Office of the Superintendent of Financial Institutions (OSFI) is lowering the Domestic Stability Buffer requirement, releasing more than $300 billion of additional lending capacity for Canadian financial institutions.