Canada’s federal government today unveiled several COVID-19 stimulus measures to help further the economic recovery process.
Following a throne speech that pivoted on further emergency spending, Prime Minister Justin Trudeau has now delved into further detail regarding the additional stimulus measures. On Friday, he announced that further aid will be made available to Canadian businesses that have been adversely affected by COVID-19, via a rent relief program and a wage subsidy program.
As per the announcement, the federal government has decided to revamp the commercial rent-relief program, which will now cover up to 65% of expenses for affected companies and businesses, and cover up to 90% of costs for those that are subject to specific lockdowns. In addition, the Liberal government has also pledged to cover 65% of employees’s wages for those affected via its subsidy program until at least the end of December, while expanding upon a widely-popular loan program by issuing an additional $10,000 that could be forgiven.
Trudeau acknowledged that although many businesses across Canada have been able to reopen their doors as a result of restrictions being lifted, there are still some that continue to struggle amid the pandemic. According to the latest Statistics Canada Labour Force Survey, Canada’s labour market has recovered above expectations in September, but there still continue to be some sectors of the economy that remain well-below pre-pandemic levels.
The Prime Minister noted that the rent relief program will be administered via a sliding scale format, with businesses that have had their revenues significantly impacted by the pandemic receiving the highest portion of rent relief.
Information for this briefing was found via The Canadian Press and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
