27 Mar COVID-19: Updated Federal Response for Small Businesses

The Prime Minister of Canada has announced significant changes this morning to the Federal government’s economic package to help small businesses and entrepreneurs.

Here is the most up to date information. Please check the blog often or sign up for our newsletter for the latest updates.

Temporary Subsidy Amount (“Subsidy”)

• The Subsidy will be increased to 75% with conditions. Eligibility criteria and caps will be released on Monday.
• The new Subsidy will be back-dated to March 15^th, 2020 (previously was March 18^th).
• Re-hired employees will be eligible for the Subsidy.
• If you are making business or staffing decisions today, you may want to consider waiting until next week to see if you are eligible to this Subsidy.

Canada Emergency Business Account

• Banks will soon offer loans of up to $40,000 to qualifying small businesses to be guaranteed by the Government.
• These loans are interest-free for the first year.
• $10,000 of the loan may be forgivable under certain conditions. These conditions have not yet been announced.

GST/Duty Payment Deferral

• GST and Duty tax payments can now be deferred until June.
• These amounts were not permitted to be deferred as part of the previously announced tax deferrals.

More Information

We will continue to release further information and details on these measures as it becomes available.

If you have any questions about the information outlined above, please reach out to our team at we_are@clearlinecpa.ca.

Team Clearline