The Federal Government this morning announced further measures to support small and medium- sized businesses with the aim to assist these businesses in keeping their employees and alleviate cash flow challenges.
These are some significant positive measures for small and medium-sized businesses.These measures are as follows:
1) The previously announced wage subsidy of 10% has been increased to 75% for qualifying small businesses. This decision, to help qualifying businesses keep employees on staff, is being back-dated to March 15th.
2) GST/HST payments will be deferred until June 30th without interest or penalties.
3) The government is also launching a special emergency account for small businesses, which allows banks to provide a "small business emergency loan" of $40,000 interest-free for the first year. There is a possibility that $10,000 of the loan principal will be forgiven. Applicability and criteria for the loan and as well as the forgiveness is still to be communicated.
The Federal Government has indicated more information and design of these measures will be communicated on Monday, March 30th.
Stay tuned for an update from us as soon as details are announced.
Thank you and stay safe!