Last week we shared with you that on Friday, the Prime Minister announced the Canada Emergency Wage Subsidy, which is designed to subsidize 75 per cent of wages for “qualifying businesses.”
Monday, qualifying businesses were defined and includes
hotels small, medium, and large, as long as their revenues have decreased by 30 per cent as a result of COVID-19.
The subsidy will cover 75 per cent on the first $58,700 of a person’s wages and it will be backdated to March 15.
We will update you as soon as additional information on access to the subsidy is available.
Summary of the week’s advocacy announcements
Deferred GST & HST payments, duties and taxes on imports until June 2020
- This is equivalent of providing up to $30 billion in interest-free loans to Canadian businesses.
- Deferred payments to allow businesses to have more liquidity on hand to survive the financial impact of COVID-19.
Canada Emergency Wage Subsidy - up 75% of wages
- The government’s previously announced wage subsidy of 10% has been increased to 75%. Qualifying businesses will include all hotels that have seen a 30 per cent decline in revenue.
- CEWS will cover 75% of first $58,700 of workers’ salaries, or up to $847/week.
- This subsidy will be available for up to three months and retroactive until March 15, 2020, allowing members to keep or potentially re-hire laid off staff.
New Access to Credit through Small and Medium-sized Enterprise Loan and Guarantee program
- The government announced $12.5 billion of additional support and access to credit through EDC and BDC to help small and medium-sized enterprises with cashflow requirements through the new small and medium-sized Enterprise Loan and Guarantee program.
- Businesses can apply for a guaranteed loan through their banking institution to access this additional financial support.
- Loans of up to $6.25 million will be made available to small and medium-sized businesses in Canada directly through their financial institutions.
Canada Emergency Business Account
- Banks will offer $40,000 loans, guaranteed by the government, to qualifying small businesses and loans will be interest-free for the first year. Qualifying businesses must have payrolls of greater than $50,000 and less than $1 million.
- If certain conditions are met, a 25% loan forgiveness will be available (up to $10,000).
- Loans will be available through eligible financial institutions and will be fully guaranteed and funded by the Government of Canada.
We continue to work hand in hand with our Provincial and Federal Associations to ensure we can represent our industry with a clear message and one voice.
President & CEO,BC Hotel Association