Ottawa will invest $ 100 billion within 3 years to “heal economic wounds” from the COVID-19 pandemic, Finance Minister Chrystia Freeland said in her budget tabled today.
Several assistance programs are extended for workers and businesses.
This is the case of the Canada Emergency Wage Subsidy, which has helped more than 5.3 million people keep their jobs according to the government, and the Canada Emergency Grant for Rent and Support Measure. lockdowns that have helped more than 154,000 organizations with rent and mortgage costs, as well as other expenses.
The wage subsidy, rent subsidy and lockdown support programs, which were due to expire in June 2021, are also being extended. The 2021 budget proposes to extend the wage subsidy, the rent subsidy and the confinement support measure until September 25, 2021.
It also proposes to gradually reduce the wage subsidy and rent subsidy rates, effective July 4, 2021, to ensure the phasing out of programs, as vaccinations are administered and the economy continues to grow. starts up again.
New hiring program
Budget 2021 also proposes to introduce a new hiring program for Canada’s economic stimulus for eligible employers who continue to experience declines in eligible earnings from the start of the pandemic.
The proposed subsidy would offset some of the additional costs employers incur in reopening, whether through increased wages or hours worked, or by hiring more employees.
This support would only be available to active employees from June 6 to November 20, 2021. Eligible employers would apply for the Canada Emergency Wage Subsidy or the proposed new subsidy, whichever is greater.
The aim is to make it as easy as possible for companies to hire new workers when the economy reopens. Since the wage subsidy and hiring program rates will gradually decrease over time, there is a strong incentive for employers to start hiring as early as possible and maximize their benefit.
Digital age
To spur recovery, jobs and growth, the government is also launching Canada’s Digital Adoption Program, which will create thousands of jobs for young Canadians, in addition to helping up to 160,000 small and medium-sized companies to adopt new digital technologies.
This program will offer two streams of financing to businesses. Eligible businesses will receive micro-grants to help offset the costs of the digital switchover and provide support to digital trainers in a network of approximately 28,000 well-trained young Canadians.
Budget 2021 proposes to allocate $ 1.4 billion over four years, starting in 2021-2022, to do the following:
o Work with organizations across Canada to provide all businesses using this program with access to skills, training and advisory services.
o Provide micro-grants to smaller businesses on shopping streets to help them incur the costs associated with technology adoption.
o Create training and work opportunities for 28,000 youth to help small and medium-sized businesses across Canada adopt technology.
Budget 2021 also proposes to provide $ 2.6 billion over four years, on a cash basis, starting in 2021-2022, to the Business Development Bank of Canada to help small and medium-sized businesses fund the adoption of technology.
Improve the SME Financing Program
Budget 2021 proposes to improve the Canada Small Business Financing Program by making improvements to the Canada Small Business Financing Act and related regulations.
These proposed changes are expected to increase annual funding by $ 560 million, which would support approximately 2,900 additional small businesses.
The proposed changes include the following:
o Expand eligibility for loan categories to include loans related to intellectual property, as well as start-up business assets and expenses;
o Increase the maximum loan amount from $ 350,000 to $ 500,000 and extend the loan coverage period from 10 years to 15 years for equipment and leasehold improvements;
o Expand borrower eligibility to include non-profit and charitable social enterprises;
o Launch a new line of credit products to provide liquidity and meet short-term working capital needs.
The 2021 budget finally proposes to provide funding of $ 700 million over three years, starting in 2021-2022, to regional development agencies to support business financing.
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