Help Is On The Way For Small Businesses
Small businesses were delivered yet another proverbial gut-punch as the Ontario government ordered COVID-19 hotspots Toronto, Peel Region and Ottawa to revert back to a modified Stage 2 ahead of the Thanksgiving weekend.
Although it was a tough decision, many will agree that it was necessary.
But, in the wake of this tough decision, the federal government made some major announcements on Friday, October 9th that greatly impact small businesses country-wide.
In an attempt to stop the bleeding, the feds announced new assistance programs that will surely provide a glimmer of hope to those who are facing financial hardship.
This encouraging announcement allowed small business owners to take a sigh of relief as they entered into the weekend centred around giving thanks for the prosperities in their lives.
The following relief programs were announced:
1) The Canada Emergency Business Account (CEBA) will be extending an additional $20,000 of loans with $10,000 to be forgivable. However, businesses will have to prove they have experienced income losses due to COVID to be eligible.
2) The Canada Emergency Wage Subsidy (CEWS) will be extended to June 2021. The program as it stands today is freezing the subsidy at 65% to December 2019, but it is unclear what the structure of CEWS will look like for 2021.
3) The Canada Emergency Rent Subsidy (CERS) will be replacing CECRA and will be structured so businesses can recoup 65% of their rent expenses with a potential top up of up to 90% for those businesses that have had to shut down due to COVID. Similar to the wage subsidies, the government will now allow small businesses to apply for the subsidy directly, rather than trying to force commercial landlords to apply for loans, which was a significant hurdle for the previous program.
These programs couldn’t have come at a better time.
As an executive office, meeting room, and virtual office provider who services many small businesses, The Rostie Group couldn’t be more excited to hear of this announcement.
At last, small businesses across the country will be provided the relief they so dearly require.
Help is on the way for small businesses.