Expanded federal support for business
Late last week, the Government of Canada expanded support for small and medium-sized businesses.
Interest-free loans: Canada Emergency Business Account
On April 9th the federal government announced that business owners could access interest-free loans of up to $40,000 via their bank or credit union. This program is intended to help cover cash flow and operating costs.
Businesses that repay the loan by December 31, 2022 will be forgiven 25% of it — up to $10,000. These loans are fully funded by the Government of Canada.
The Canada Emergency Business Account is part of the $65B Business Credit Availability Program (BCAP) being delivered in collaboration with Export Development Canada and the Business Development Bank of Canada.
Wage subsidy: Canada Emergency Wage Subsidy (CEWS) increased
Additional details were released about the Canada Emergency Wage Subsidy. Any business whose gross revenues have fallen 15% or more in March and 30% or more in April and May may apply for a 75% subsidy of employee wages — up to $847 per employee per week. This program is currently scheduled for the 12-week period between March 15 to June 6, 2020.
The Government of Canada continues to update the list of available federal programs .