Financial Relief Extended to Small Business Owners
Drinks on the deck near Breckin Point. The good old days! Photo by Mackenzie Cooper, Nanaimo, BC.
Greetings folks! I hope you have had a good week as I write this to you late on Friday afternoon.
I’d like to relay my thoughts on the great news this morning in terms of the relief package being offered to Small Business Owners and Entrepreneurs in Canada. Many of you fall into this category, and I would like to share my thoughts on today’s announcement from the steps of Prime Minister Justin Trudeau’s self-isolation office, Rideau Cottage.
Routines these days involve a serious dose of daily news; for me my mornings are spent sitting at the kitchen counter with coffee, laptop, mobile phone, and CBC Radio. While it seems like nothing’s shocking anymore, sometimes there is a burst of good news. Today’s announcement of government funding and policy changes will be of significant relief to Canada’s small business owners, perhaps even to you and me.
Recently, I have spoken to many of my clients to support and check on their well-being, and many have also asked how my family and I are faring. I will relay in this post that here at home, we feel resilient and healthy at this time, but there is constant concern that this could change in an instant, as it has for so many around the world. There is warmth amongst this adversity (as evidenced at 1900 Hrs daily, through the neighbourhood cheers for healthcare workers). My biggest concern for all my friends, family, and clients is the maintenance of physical and mental wellness during this pandemic.
However, my second biggest concern has been for the welfare and endurance of the business owners in my world, clients and otherwise. The Canadian Federal Government is also concerned, and it is apparent that they are doing whatever is necessary to help businesses affected by COVID-19.
Certain commercial sectors may fare very well during this time, and may even see growth opportunities (grocery stores, cleaning product manufacturers, internet streaming services, etc.). However, others may see huge losses, closures, or even bankruptcies (tourism, hospitality, and entertainment sectors, fitness centres, etc.). Already there have been many business closures, many people laid off, and increasing concern about how personal and commercial rents will be paid come April 1st.
Canada’s Prime Minister Justin Trudeau has been very busy lately.
As a result of these economic concerns, we are hearing of remarkable government relief, and “unprecedented investments in the economy”. I don’t imagine any politician has been under so much pressure as they are now, and credit is due for those that are decisive in their leadership. Extraordinarily, we are waking up daily to a major Federal Government press conference on the steps of Rideau Cottage, Canada’s Prime Minister generally starting with a (charmingly Canadian) apology for being late to start. Today’s announcement by Justin Trudeau could be the most meaningful yet, as he was speaking directly to Small Business Owners and Entrepreneurs. Below is a summary of what is on offer in terms of economic relief.
Canada Emergency Response Benefit: Payroll support to 75% of wages, backdated to March 15th. It is apparent that as a result of this payroll support, businesses are already hiring back laid off employees. This benefit is taxable to employees, similar to Employment Insurance, but distributed as payroll. This means that employers can continue to pay employees and to assure them a sense of job security despite the economic slowdown in their industry.
Canada Emergency Business Account: Recognizing that Business Owners will need funding to keep their business’ operational and viable, the Federal Government has offered guaranteed interest-free bank loans of up to $40,000. Interest is relieved for the first year of the loan, and there is potential for qualifying businesses to see $10,000 forgiven. Trudeau stated that this is meant as a “bridge to better times”.
Deferral of import duties and HST / GST payments until June, 2020: Trudeau stated that the relief from these payments, at least for a few months, will allow businesses to keep the money that is currently owed to the Government.
While this summary of today’s announcement requires more detail for clarity, apparently this will be presented to the public on Monday next week.
The Council of Canadian Innovators has stated that the economic recovery will be much faster as a result of these subsidies. Trudeau has shown that he wants business owners to know that our Government is here for us. He is counting on small businesses to keep workers on payroll. He is affirming confidence in Canada’s ability to survive, and our ability to return to the prosperous economy that we enjoyed before this situation. While I have not always agreed with all of Justin Trudeau’s decisions, I am very impressed by his (and other political and healthcare system leaders) prompt action and decisiveness during these chaotic economic times.
I am healthy and mobile during these challenging times. If there is anything I can do to assist you, please let me know. Call my mobile at (250) 668 6387 or email me anytime. Let me know your thoughts on this post, and if you’d like, please share with your friends, family and clients.