FEDERAL GOVERNMENT FISCAL STIMULUS PACKAGE IN RESPONSE TO COVID-19

Helping businesses keep their workers

For Canadian controlled private corporations eligible for the small business deduction, as well as non-profit organizations and charities, the government is proposing to provide a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer for eligible employers. Businesses will be able to access this support immediately by reducing their remittances of income tax withheld on their employees’ remuneration.

$10 billion business credit facility program

On March 13th, Finance Minister Bill Morneau announced that a $10 billion credit facility will be established to lend money to businesses coping with COVID-19. The money will go to the Business Development Bank of Canada and EDC who will help businesses access this additional credit. He indicated that most of the money will be directed to small and medium-sized enterprises.