On April 16, the federal government announced that it will extend the Canada Emergency Business Account to ensure that more small and medium businesses can benefit from the loans of up to $40,000. Businesses that had payrolls between $20,000 and $1.5 million last year will be eligible for the loan program, which previously was available only to businesses with payrolls between $50,000 and $1 million.
The loans are interest-free until December 31, 2022. If businesses pay off their loan by that date, up to 25% of their total loan will be forgiven. Since the loan program launched last month, businesses have taken out approximately 195,000 loans (totalling approximately $7.5 billion). For more information about the loans available through the Canada Emergency Business Account, take a look at our COVID-19 Resource Centre.
Additionally, the government announced that it will work with the provinces and territories to implement a program to assist small businesses with paying rent for April, May and June. The government has stated that the details of the program still need to be worked out.
As always, we will keep monitoring developments and keep you In the Know.
This blog is provided as an information service and summary of workplace legal issues. This information is not intended as legal advice.