Government Introduces COVID-19 Emergency Response Act, No. 2 to Help Businesses Keep Canadians in their Jobs
“With the Canada Emergency Wage Subsidy, we are making sure to support Canadian businesses and Canadian workers through this crisis, ensuring they are well-positioned to recover quickly when the COVID-19 pandemic is over. We will continue to do whatever it takes to ensure Canadians are supported through the outbreak, and that our economy remains resilient during these difficult times.”
Bill Morneau, Minister of Finance
The government has taken action to support Canadian businesses through the outbreak of COVID-19, with targeted new initiatives that:
- Launch the new Canada Emergency Business Account. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free, partially forgivable loans to small businesses, including not-for-profits. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a 0% interest rate, so they can pay for rent and other important costs over the next number of months.
- Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and the Business Development Bank of Canada, for small businesses to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.
- Increase credit available for farmers and the agri-food sector through Farm Credit Canada.
- Extend the maximum duration of the Work-Sharing program, from 38 weeks to 76 weeks, for workers who agree to reduce their normal working hours because of developments beyond the control of their employers.
- Defer the payment of income taxes. The government is allowing all taxpayers to defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18 and before September 2020. This relief will apply to new balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
- Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as GST and customs duty payments 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.
- Government provides further flexibility for employers to access the Canada Emergency Wage Subsidy
- Government Announces Details of the Canada Emergency Wage Subsidy to Help Businesses Keep Canadians in their Jobs
- Canada’s COVID-19 Economic Response Plan
- Government announces support for air transportation sector during COVID-19 pandemic
- Prime Minister announces support for small businesses facing impacts of COVID 19
- Additional Support for Canadian Businesses from the Economic Impacts of COVID-19
- Prime Minister announces more support for workers and businesses through Canada’s COVID-19 Economic Response Plan
- Prime Minister outlines Canada’s COVID-19 response
- Government of Canada takes action on COVID-19
- Canada outlines measures to support the economy and the financial sector
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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