At the start of what Canada’s Chief Medical Officer of Health, Dr Theresa Tam, called ‘a crucial week’, the federal government released more details about its 75 percent wage subsidy and loan programs for small and medium-sized businesses, first introduced Friday.
During his daily briefing, Prime Minister Trudeau said the 75 per cent wage subsidy will apply to businesses where revenues decreased by 30 per cent due to Covid-19.”The subsidy will apply to all companies, no matter the size. It will also apply to non-profit and charities. No matter if your company is big or small, with 10 employees or 1000,” said Trudeau.
For workers, it means 75 percent of your salary for the first $58,700 you earn. Up to $847.00 dollars week is available for Canadian workers, backdated to March 15th.
“Our businesses will be able to keep people on the payroll at 75 percent and some companies if possible are asked to top that up.”
Trudeau warned of serious consequences for companies trying to exploit the program. “We will have ways to monitor the program in the coming weeks to monitor abuse,” said Trudeau. “This is a time when Canadians need to trust one another,” he added.
The government had previously announced a 10 percent wage subsidy – which Trudeau acknowledged was insufficient. “It’s becoming clear that we need to do more,” said Trudeau. “This means people will continue to be paid even though their employers have to slow down or stop their businesses.”
Guaranteed loans of up to $40,000 for small businesses will be interest-free for the first year. up to $10,000 of the loans could be non-repayable.
GST and HST payments, as well as duties and taxes owed on imports, will be deferred until June. Trudeau says that amounts to $30 billion in interest-free loans to businesses.