Canada Supports Business During COVID-19 Outbreak

Canada has released some of the measures to help stabilize the economy during the COVID-19 as well as protect jobs.

Canada will allocate up to $ 82 billion, or more than 3% of its GDP, to help Canadians pay their rent and do their shopping, and businesses can continue to pay their employees and their bills.

Up to $ 27 billion of the total funding will be used to support Canadian workers and businesses. Also, the government will provide up to $ 55 billion in a tax deferral, allowing businesses and households to pay their taxes at a later date, according to a government press release.

These measures follow on from Canada's $ 1 billion COVID-19 Response Fund, which supports provincial and territorial health systems.

Over $ 500 billion in credit and cash is available to support people and keep businesses running.

To help personal and small business banking customers who are facing challenges from COVID-19, they all are working together with the six largest financial institutions in the country. They aim to help Canadians overcome child care disruptions due to school or daycare closures, as well as those suffering from COVID-19. This assistance includes the deferral of mortgage payments for up to six months and the possibility of taking advantage of other credit products.

Support for families, homeowners, and worker

More flexibility will be given to lenders to defer mortgage payments for homeowners experiencing financial hardship from the pandemic. Insurers are already instructed to allow lenders to allow deferral of payment.

Government to provide additional assistance to families with children, adding almost $ 2 billion to Canada Child Benefit payments.

Workers who must stay home and do not have access to paid sick leave can receive up to $ 900 bi-weekly for up to 15 weeks. This measure covers workers and self-employed workers who are sick, quarantined, isolated, but who are not eligible for Employment Insurance (EI). It also covers those who care for sick family members such as elderly parents and children.

Workers facing unemployment and who are not eligible for Employment Insurance (EI) may receive Emergency Support Benefit through the Canada Revenue Agency. Up to $ 5 billion is allocated to this measure.

Additional assistance will be provided to low and moderate-income individuals and families with a “special top-up payment” under the Goods and Services Tax (GST) Credit. This is expected to inject $ 5.5 billion into the economy.

The mandatory one-week waiting period for EI sickness benefits will be waived for at least six months, for those in quarantine or ordered to self-isolate. Also, the requirement for a medical certificate to access Employment Insurance sickness benefits will be removed.

The last date for filing tax has been extended from April 30 to June 1. Taxpayers can defer income tax payments until August 31, without interest and penalty.

In line with business efforts, the government will also provide eligible small businesses with a 10 percent wage subsidy for the next 90 days, up to a maximum of $ 1,275 per employee and $ 25,000 per employer. Corporations eligible for the small business deduction, non-profit organizations, and charities will benefit from this measure. With this measure, the government is making an effort for its residents to keep their jobs.

Support for businesses

Canada will allow businesses to defer income tax payments until August 31, without interest or penalties.

Businesses will also have access to more credit through the new business credit program, which is expected to provide more than $ 10 billion in additional support to small, medium, and large Canadian businesses. With Farm Credit Canada, farmers and the agri-food sector can get more credit.

Businesses when they are deemed to be working to deal with these exceptional circumstances for national interest, all are given support by the government by giving them flexibility on Account limit.

Canada will also expand Export Development Canada's capacity to support domestic businesses.

They will also launch an insured mortgage purchase program to purchase up to $ 50 billion of insured mortgage pools. This is aimed at providing stable funding for banks and mortgage lenders, as well as supporting the pursuit of lending to businesses and consumers. The government will allow these measures by increasing the limits of the Canada Mortgage and Housing Corporation by $ 150 billion each.

Minimum Registered Retirement Income Fund (RRIF) withdrawals are reduced by 25% due to the impact of volatile market conditions on retirement savings for seniors.

Those who repay the Canada Student Loans will benefit from an interest-free payment interruption for six months.

The government is also providing $ 305 million for a new Honors-Based Indigenous Community Support Fund to meet the immediate needs of First Nations, Inuit, and Métis communities.

An additional $ 50 million will be made available to women's shelters and sexual assault centers to help them manage and prevent outbreaks in their facilities. This funding will also cover these facilities in Indigenous communities.

Canada will also provide an additional $ 157.5 million to address homelessness through the Reach Home program.

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