75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll. More details on eligibility criteria will start with the impact of COVID-19 on sales and will be shared before the end of the month.
The Federal Government will allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills and help ease cash-flow challenges across the country.
The Federal Government will implement the Canada Emergency Business Account. This $25 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus.
Government is providing $675 million to give financing support to small and medium-sized businesses that are unable to access other COVID-19 business supports, through Canada’s Regional Development Agencies.
Government will provide a taxable benefit of $500 week for up to 16 weeks to eligible workers who have lost their income due to COVID-19.
Government is introducing enhancements to the ‘Work-Sharing Program’ (a program designed to help employers and employees avoid layoffs) to help employers experiencing a downturn in business as well as their employees.
Ottawa has established a Business Credit Availability Program (BCAP) with approximately $40B in new funding through the Business Development Bank of Canada (BDC) to provide additional credit support for businesses.
The maximum annual Child Care Benefit (CCB) will be increased by $300 per child.
Students will receive a 6-month moratorium on the repayment of Canada Student Loans.
Income Tax Deferrals
Business and individuals can now defer paying income tax amounts due until after August 31.