COVID-19 SMALL BUSINESS UPDATE MARCH 27, 2020

Today, the Prime Minister announced new and substantial support for small businesses facing the unprecedented impacts of COVID 19.

From the Prime Minister’s announcement, the Government of Canada will:Implement a 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll. More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month.Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.Launch the new Canada Emergency Business Account. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero per cent interest rate, so they can pay for rent and other important costs over the next number of months.Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.As the announcement states, the measures announced today “will help Canada’s financial institutions provide the credit and liquidity options that a range of Canadian businesses need immediately.”

Today’s announcement from the prime minister can be found here: https://pm.gc.ca/en/news/news-releases/2020/03/27/prime-minister-announces-support-small-businesses-facing-impacts

Additionally, the federal government’s “Resources for Canadian Businesses” COVID-19 support webpage should be bookmarked. All federal resources and support available to businesses and individuals are updated daily: 
https://www.canada.ca/en/services/business/maintaingrowimprovebusiness/resources-for-canadian-businesses.html#_2._Support_for_1 

Mortgage Professionals Canada appreciate the challenges all levels of government across Canada face as they work to limit the physical damage caused by COVID-19 while also trying to ensure the economic damage is limited, temporary, and reversible. The Bank of Canada, the Ministry of Finance, CMHC and OSFI are working together in an aggressive and necessary manner. As Governor Poloz said today in announcing the Bank’s third 50 basis points cut to its overnight rate in under a month, “a firefighter has never been criticized for using too much water.” The measures announced today by Prime Minister Trudeau to help small and medium enterprises and those they employ across Canada are not just substantial and unprecedented, but appropriate. 

Also today, MPC, along with representatives of CMBA, were on a conference call with the Mortgage Broker Regulators’ Council of Canada, relaying to them the issues facing our community in recent days. MBRCC pledged to continue the dialogue in the coming days. We thank them for their time and continued stakeholder outreach.

We truly appreciate the ongoing efforts of policymakers across the country and thank them for continuing to reach out and including our input on behalf of the mortgage brokering community

Related Posts

Comments are closed.