Stabilizing Small Business – New Economic Measures Announced on March 27, 2020

Posted
March 28, 2020
in

On March 27, new measures were announced by the federal government to assist small businesses:

  1. The previously announced wage subsidy was increased from 10% to 75% retroactive to March 15, 2020. Any details concerning limits, eligibility criteria and other specifics are forthcoming prior to end of March.
  2. Businesses, including self-employed individuals, will be able to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until end of June.The deferral will apply to GST/HST remittances for:
    • Monthly filers: the February, March and April 2020 reporting periods
    • Quarterly filers: the January 1, 2020 through March 31, 2020 reporting period; and
    • Annual filers: the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.

    At this point it is unclear as to whether the deferral also applies to the filing deadline of the GST/HST returns.

  3. Launch of the new Canada Emergency Business Account which is expected to provide loans of up to $40,000 for small businesses, which will be interest-free for the first year and up to $10,000 of the principal could be waived for repayment.

Stay tuned over the next few days for additional information concerning the preceding measures.

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