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Ottawa plans to roll out direct financial aid to targeted small businesses

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OTTAWA, ON., Oct. 9, 2020 — Today, the Government of Canada announced that it is taking action to help Canadian businesses affected by the global COVID-19 pandemic, from helping keep employees on the job to increasing cash flow and providing support to help pay rent.

Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland says the government intends to introduce new, targeted supports to help hard-hit businesses and other organizations experiencing a drop in revenue.

“There are some businesses that simply cannot operate at full capacity, and some are closed down by public health orders. These measures are to support those businesses and to provide a bridge for all of us to the full containment of the virus,” said Freeland.

This is echoed in the news release from the federal government which explains that while some parts of our economy are recovering, others continue to struggle with reduced revenues, increased costs, and uncertainty because of the COVID-19 pandemic.

The federal government’s support plan to help these businesses includes:

  • The new Canada Emergency Rent Subsidy, which would provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19.
  • A 25 per cent “top-up” of the Canada Emergency Rent Subsidy for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 per cent subsidy.
  • The extension of the Canada Emergency Wage Subsidy until June 2021, which would continue to protect jobs by helping businesses keep employees on the payroll and encouraging employers to re-hire their workers. The subsidy would remain at the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020.
  • An expanded Canada Emergency Business Account (CEBA), which would enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic—to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020.

“From the very beginning of this pandemic, we spent every single day listening to business owners and responding to their urgent needs.,” said Mary Ng, Minister of Small Business, Export Promotion and International Trade. “Today’s changes are a direct result of those crucial conversations, and will help even more Canadian business owners, entrepreneurs, and workers across the country. In the weeks and months ahead, we will continue to have their backs,” added Ng.

Read more top stories at TOtimes.ca and MTLtimes.ca.

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