Federal Business Support Programs Will End October 23, Replaced By More Limited Support
HALIFAX — The federal government is ending its major business support programs and replacing them with new, more limited measures.
The Canadian Emergency Wage Subsidy (CEWS) and Canadian Emergency Rent Subsidy (CERS) will both expire on October 23.
For most businesses, that means the end of a pivotal crutch that has helped them hobble through the economic hardships wrought by the Covid-19 pandemic.
Deputy Prime Minister Chrystia Freeland said today the measures were always meant to be temporary and that it makes sense to end them now that the Canadian economy is recovering.
She pointed out the country has already regained 100 percent of the jobs it lost during the height of the pandemic. She admitted, however, that the recovery has been “uneven” and has hit certain sectors and businesses much harder.
Because of that, the government is replacing the broad CEWS and CERS with “more targeted measures that will provide help where it is needed while prudently managing government finances.”
The first will be a program targeted specifically at the hospitality sector — businesses like hotels, restaurants, and travel agencies.
The program will be “very targeted” and offer wage and rent subsidies to businesses that have suffered revenue losses of 40 percent.
The rate of support will increase up to 75 percent depending on how much revenue the affected business has lost.
Freeland also announced a “Hardest Hit Business Recovery Program” that will be available to any employer who can show they have faced “deep and enduring losses”
It will also provide support through rent and wage subsidies, starting at 10 percent for applicants with a 50 percent revenue loss and increasing to a maximum of 50 percent subsidy for those with a 75 percent revenue loss.
Both programs will be available from October 24 until May 7 – although the support they offer will be cut in half in March.
Freeland also announced a support program for businesses facing temporary, local lockdowns—as well as a measure that would provide $300 a week for employees whose employer is forced to lock down.
Freeland said the total cost of these and other programs the government plans to keep in place until May 7 will be $7.4-billion.
More information on the federal government’s Covid-19 relief programs is available here.
Trevor Nichols is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].