Prime Minister Justin Trudeau has announced an increased wage subsidy for small and medium businesses from 10 percent to 75 percent.
“We are thinking of those employees who are being laid off after they’ve been there for the company through good times and bad, this is their time of need. We need to help employers help their employees, so we can all bounce back after this is over,” Trudeau said.
The subsidy is backdated to March 15th, however, Trudeau couldn’t provide greater details on how many businesses could be helped and how much the subsidy would cost.
He said they are finalizing the details and should have that available by Monday.
Trudeau noted the only way we will get through this is if we support each other and the wage subsidy should help businesses maintain their relationships with their employees.
“If we can support businesses to keep that relationship with their employees, to keep being able to pay their employees through this time, we know coming out of this crisis will be smoother and better than otherwise,” Trudeau added.
The Canadian Chamber of Commerce calls Trudeau’s announcement excellent news.
75% wage subsidy is exactly what the doctor ordered, and what business groups have been asking for. Very good news for small businesses and their workers, increasing their ability to keep staff on the payroll.
— Canadian Chamber of Commerce (@CdnChamberofCom) March 27, 2020
Government-backstopped, interest-free 40K loans through commercial banks (with whom small business have an existing relationship) is a very good approach to quickly get money into the hands of businesses.
— Canadian Chamber of Commerce (@CdnChamberofCom) March 27, 2020
