The following release came from the Office of the Minister of Small Business, Export Promotion and International Trade:
Today, the Honourable Chrystia Freeland announced
that the government is taking targeted action to create jobs and spur economic growth. This includes moving from the very broad-based support that was appropriate at the height of lockdowns to more targeted measures that will provide help where it is needed, while prudently managing government spending.
The government is proposing the following changes to business support programs:
Backgrounder: Targeting COVID-19 Support Measures
- Extend the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increase the subsidy rate to 50 per cent. The extension would help businesses continue to hire back workers and to create the additional jobs Canada needs for a full recovery.
- Deliver targeted support to businesses that are still facing significant pandemic-related challenges. Support would be available through two streams:
- Tourism and Hospitality Recovery Program, which would provide support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent.
- Hardest-Hit Business Recovery Program, which would provide support through the wage and rent subsidy programs, would support other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
- Applicants for these programs will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.
- Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.
- These programs will be available until May 7, 2022, with the proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.
To ensure that workers continue to have support and that no one is left behind, the government proposes to:
- Extend the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit until May 7, 2022, and increase the maximum duration of benefits by 2 weeks. This would extend the caregiving benefit from 42 to 44 weeks and the sickness benefit from 4 to 6 weeks.
- Establish the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers should they be unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
With these changes, the government is supporting the hardest-hit sectors and those who are affected by the virus while recognizing that broad-based assistance is no longer needed. These changes will continue to prioritize job creation and a strong economic recovery.
We value our connections with every stakeholder, so please continue to stay engaged with us. If you no longer wish to receive updates on our government’s progress and important announcements, let me know and I won’t include you moving forward.
TO GET THE HELP YOU NEED:
- Visit our government’s COVID-19 Economic Response Plan website for information about supporting your employees and your business.
- Contact your local financial institution. Since we know most small businesses have a relationship with their local financial institution already, we’ve worked with the financial sector to increase their lending capacity to support you in this challenging time. They are an excellent first resource.
- Consult the Canadian Business Resilience Network, a partnership between our government and the Canadian Chamber of Commerce to help your business prepare, persevere and prosper through this crisis.
- Check out the new PPE Supply Hub – Canadian businesses in need of personal protective equipment, and businesses looking to sell these supplies can go to this hub to connect.
- Make the POST Promise to show employees and customers that you take COVID-19 prevention seriously by practicing key health and safety steps and maintain a safe workplace.
- Canadian Centre for Occupational Health and Safety – for a free online course to provide businesses with all the information they need to reopen safely.