MARCH 27th, 2020. Issue #7
COVID-19 information from IVSA included in today's notice:
Federal Gov't 75% wage subsidy
Federal Gov't Guaranteed Interest-Free loans for business
GST Remittance deferral
Government of Canada’s New Programs for COVID-19
Today, the Government of Canada announced more help for small and medium-sized businesses to keep employees on the payroll during the COVID-19 crisis, including a 75% wage subsidy and guaranteed interest-free loans.
Details are on these programs are expected to announced on Monday.
Prime Minister Trudeau said the wage subsidies will be backdated to March 15, 2020. The government previously announced a 10% wage subsidy for business. Eligibility criteria and caps per company/per employee have not been announced.
The new “Canada Emergency Business Account” will provide interest-free loans of up to $40,000 to qualifying small businesses. The qualifications and eligibility have not yet been announced. These loans will be provided by financial institutions and guaranteed by the federal government.
GST Remittance Deferral
Remittance of GST to the federal government is being deferred for businesses until June. This will help maintain cash flow in many companies as it equals $30 billion in deferrals. This is also applied to import/export duties owed.
The government will provide an additional $12.5 billion in funding to support the Business Credit Availability Program through BDC and EDC, to provide operating loans to businesses. You can read more about the Federal government COVID-19 economic response plan here.
IVSA Import Vintners & Spirits Association