On March 27, 2020, the Prime Minister of Canada announced significant changes to their economic package to help small businesses and entrepreneurs.
We are closely following the recent changes announced and we plan to provide more specific details as soon as possible. Here is what we know so far:
The Wage Subsidy Program
The subsidy will be increased to 75% with conditions. The new subsidy will be back-dated to March 15th (previously, March 18th). We understand that those that receive this benefit will likely not also qualify for the Canada Emergency Response Benefit (CERB).
Bank Loans Guaranteed by Government
Banks will be able to offer loans of up to $40,000 to qualifying small businesses and will be guaranteed by the government. These loans will be interest-free in its first year, and under certain conditions, up to $10,000 of the loan could be forgivable.
GST and HST Payments
GST and HST payments, as well as duties and taxes owed on imports will be deferred until June 30, 2020.
More Information Coming
Further details will be provided this week. We will continue to update you on these measures as they become available.
For more details, here is a link to the government’s news release: Additional Support for Canadian Businesses from the Economic Impact of COVID-19
Horizon CPA
