Announced at 11:15 am on March 27, by Prime Minister Justin Trudeau, three excellent points in the news for businesses:
• The previously announced 10% wage subsidy is increased to 75% for eligible businesses. This measure is retroactive to March 15. Details regarding eligibility and terms are forthcoming the week of March 30, 2020.
• Launch of a new emergency fund for businesses. Banks will be able to lend up to $ 40,000 with an interest rate of 0% for one year and guaranteed by the Government of Canada. Depending on certain criteria, companies could be exempt from repaying up to $ 10,000 of this loan.
• Suspension of payment of GST/HST until June 30, without interest charges.
It is possible to obtain Canada's Economic Response Plan to respond to COVID-19 by visiting https://www.
Federal Business Credit Program (PCE) (partnership with EDC)
A business credit program has been established (PCE) to provide more than $ 10 billion in additional support, primarily for small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
In addition, through Export Development Canada (EDC), a new loan guarantee program for SMEs will be implemented. EDC will guarantee new operating credits and self-financing term loans that financial institutions provide to SMEs, up to $ 6.25 million.
Federal Business Credit Program (PCE) (partnership with BDC)
Through this program, the Business Development Bank of Canada (BDC) will work more closely with private-sector lenders to coordinate financing and credit insurance solutions for Canadian businesses.
As of now, new support measures are being implemented for eligible businesses:
• Working capital loans of up to $ 2 million with flexible terms and deferral of repayments for up to six months for eligible businesses;
• Deferrals of repayments for up to six months, free of charge, for existing customers whose total loan commitment to BDC, is $ 1 million or less;
• Reduced rates for new eligible loans.
A business credit program has been established (PCE) to provide more than $ 10 billion in additional support, primarily for small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
