Federal Government Will Provide More Support For Struggling Businesses
MONCTON – The federal government is temporarily enhancing support programs for businesses impacted by tightening restrictions to combat the spread of the omicron variant.
The federal government has expanded eligibility to programs such as the Canada Worker Lockdown Benefit and the Local Lockdown Program. Employers and workers can apply if they are subject to capacity-limiting restrictions.
In a Wednesday morning public announcement, Deputy Prime Minister Chrystia Freeland said employers that have had to reduce the capacity of their main business by 50 percent or more will be eligible for wage and rent subsidy support through the Local Lockdown Program.
As part of that, the federal government has lowered the revenue decline threshold to qualify for support from 40 percent to 25 percent.
Eligible businesses will receive wage and rent subsidy support between 25 and 75 percent, depending on how much revenue they lost, noted Freeland.
Freeland said businesses need only demonstrate that revenue loss in the current month compared to 2019 to qualify.
Eligible workers whose jobs are impacted by partial lockdowns or reduced capacity orders will receive up to $300 per week if they’ve lost work as a direct result of a public lockdown order.
“Employers will be able to receive wage and rent subsidy support programs after the end of each program period in exactly the same way they received wage and rent subsidy support when those programs were launched last year,” said Freeland.
Freeland said the cost of implementing further support measures is an estimated $4-billion. She noted that the amount will be completely covered by the $4.5-billion set aside to plan for the Omicron variant’s impacts announced in last week’s fiscal update.
“Public companies receiving the wage subsidy through these support programs that increase their top executive compensation in 2022 compared to 2019 will have this wage subsidy support clawed back,” said Freeland.
She noted that public companies will also become ineligible for federal support if they pay dividends while receiving the wage subsidy.
PM’s Message
Prime Minister Justin Trudeau said everyone must do what it takes so all Canadians are protected and can weather the storm.
“We’re gonna be there for the hard-hit regions for specific sectors like art and culture, hospitality and arts and tourism. We’ll be there to you and your family safe. We’re going to work closely with the provinces and territories,” Trudeau said.
Trudeau said there is enough booster vaccine supply for anyone who wants the shot to get it.
He says 85-million rapid tests were delivered to provinces and territories by early December and another 35-million were being sent out this month.
The prime minister added booster shots will help in the fight against Omicron.
He urged Canadians to follow public health guidelines to protect their loved ones and to support our healthcare workers.
He understands we are tired of COVID and we want it to just go away.
“Know that there are people more tired than you. Our healthcare workers haven’t had much of a break over the last two years. They’ve been going flat out keeping people safe working in long-term care homes, hospitals and clinics, administering vaccines and boosters,” Trudeau said.
The PM noted his own office is not immune from the Omicron variant as members of his staff and security detail tested positive recently.
With files from Tamara Steele of Country 94/97.3 The Wave, Huddle content partners.