Canada Unveils Aids for Businesses during Coronavirus Pandemic
The federal government of Canada promises to offer $82-billion economic aid package as a temporary wage subsidy for small businesses impacted by the covid-19 outbreak. The wage subsidy program is aimed at helping Canadian employers curb payroll deductions and retain employees amid the covid-19 outbreak. The coronavirus pandemic has sickened 7,298 people, and taken the lives of 89 people.
In its efforts to support small businesses, the Canadian government has also extended the Work-Sharing Program from 38 weeks to 78 weeks. The work-sharing is an adjustment program aimed at helping employers to avoid layoffs during situations which are beyond their control. The program offers income support to qualifying employers as well as employees for the employment insurance benefits.
In addition to this, the government has also established a new Business Credit Availability Program (BCAP) where small businesses will get a wage up to $65 billion through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
Both organizations will work with private sectors belonging from oil and gas, air transportation, exportation and tourism sectors.
The program will include the following:
Canada Emergency Business Account– to provide interest-free loans of up to $40,000 to small businesses and not-for-profits.
Loan Guarantee for Small and Medium-Sized Enterprises- to issues a new operating credit and ash flow term loans of up to $6.25 million to small enterprises.
Co-Lending Program for Small and Medium-Sized Enterprises- to meet operational cash flow requirements of SMEs.