Prime Minister Justin Trudeau gave further details on the 75% wage subsidy to eligible businesses announced on March 27 as part of the COVID-19 Economic Response Plan.
During the daily national address, Justin Trudeau clarified on the 75% wage subsidy, stressing the fact that detailed eligibility criteria will be published later.
- Businesses who experience a 30% drop in revenue will be eligible for 75% wage subsidies.
- 75 per cent wage subsidy means the government will pay up to the first $58,700. I.e government will pay up to $847 a week.
- The subsidy applies to both non-profits and charities in addition to for-profit small, medium and large businesses.
- This is effective March 15, 2020. More Details
Today, Prime Minister Justin Trudeau announced that the Canadian government will increase its wage subsidy for eligible small businesses to 75% from 10% announced earlier as part of the COVID-19 Economic Response Plan.
Justin Trudeau also announced a new Canada Emergency Business Account, through which banks will offer $40,000 loans which will be interest-free for the first year. He also said, “if the businesses meet certain criteria, $10,000 of it will be forgivable.”
He also said that Government is deferring Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020. There will also be a deferral of customs duty and sales tax for importers.
On March 25th, House of Commons passed Bill C-13, $107 billion COVID-19 Economic Response Plan. The plan included direct financial support and $55 billion through tax deferrals provides to Canadian workers and businesses. The government also established Canada Emergency Response Benefit (CERB) that will give eligible Canadians a taxable benefit of $2,000 per month for up to four months.
Today, the Bank of Canada has lowered its interest rate by 50 basis points to ¼ percent.