Breakdown of New Measures to Support Small Businesses
On Friday, March 27th, the Canadian federal government announced several new measures to give small businesses and entrepreneurs financial help to get through the on-going COVID-19 pandemic. Details are yet to follow on March 30th, but here are the key points:
Increased Wage Subsidy
The previously announced wage subsidy would allow small businesses to withhold 10% of remunerations paid to their employees as a tax credit. This new wage subsidy will be covering 75% of employees' wages, which is a significant increase. No details have been given yet about how businesses will be able to make use of this subsidy.
Deferred GST/HST Payments
In order to provide additional help to keep businesses afloat, it was announced that companies will be able to defer GST and HST payments until the end of June.
Small businesses will also be able to take out up to $40,000 in bank loans, which will be interest-free for the first year. In addition it was announced that up to 25% of the loan will be forgiven if it is repaid by December 31st, 2022.
More details to come on March 30th.