Canadian Government Announces
2020 Fall Economic Statement
Today, the Federal Government has tabled its 2020 Fall Economic Statement titled Supporting Canadians and Fighting COVID-19 . While the priority of the Federal Government is to continue the fight against COVID-19 and protect the health and safety of Canadians, the Canadian government has committed to offering support for businesses who are facing significant challenges in operating during this pandemic.
KEY HOSPITALITY UPDATES:
Canada Emergency Wage Subsidy (CEWS)

Canada is increasing the maximum rate of the Canada Emergency Wage Subsidy to 75% for the period beginning December 20, 2020 and extending this rate until March 13, 2021.
Canada Emergency Rent Subsidy (CERS) & Lockdown Support

Canada is extending the current rates (65%) of the Canada Emergency Rent Subsidy (CERS) and Lockdown Support (additional 25% for those mandated to shutdown) until March 13, 2021. Both programs will be there for businesses until June 2021.
Highly Affected Sectors Credit Availability Program (HASCAP)

The Canadian Government is offering a new stream of support for businesses hurting the most which includes hotels and restaurants: A 100% Government backed loan support and favourable terms in the creation of the Highly Affected Sectors Credit Availability Program, or HASCAP. The government says it will work with financial institutions to offer the government-guaranteed financing for heavily impacted businesses, and provide low-interest loans of up to $1 million over extended terms, up to ten years.
SUPPORT FOR CANADIAN BUSINESSES

Ottawa commits $25 billion in new spending to help Canadian businesses and workers make it through a COVID-19 winter. The government promises between $70 billion and $100 billion for economic recovery after COVID-19 is under control on what Freeland billed as “carefully judged, targeted and meaningful investments to create jobs and boost growth”.
 
In addition:
The Canadian Government is moving ahead with charging HST on multi-national digital platform giants which includes short term rental companies. Under the current rules, foreign-based digital businesses without a physical presence in Canada can sell goods and services without charging the GST or HST.
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