Today is day 11 of being in the Province's Step 1 reopening.  There is some chatter and pushing to see if the Province might consider accelerating the timeframe for moving into Step 2 given that case counts are quite low right now.  We will have to see how this progresses - I will let you all know when and if there is any concrete information on this.

 

In the meantime, I want to make sure that you're all aware of the changes to the various subsidy programs moving forward into July.  The Wage and Rent Subsidy programs have been extended to September 25/21 but both will start to reduce the amount being paid starting on July 4/21.  For the Wage Subsidy program there will be an overlap between that program and the new Recovery Hiring Program.  This new program will cover 50% of wages until November 20/21.

 

Here is a summary of the various programs and I recommend that you take a few minutes to read through the information.  If you have any questions please let me know.  I've included our MP Julie Dabrusin in this email - Julie can you confirm that Royal Assent has been given to the program listed below?

 

• The proposed Canada Recovery Hiring Program would be available to support active employees from June 6, 2021 to November 20, 2021. This will allow eligible employers to use the program at a pace that works for them.

  • As with the Wage Subsidy, eligible employers would receive support after each four week period of the program.
  • Support would be available retroactively once Bill C-30 receives Royal Assent.
  • Eligible employers would be able to access support through the CRA and the application portal would be available after Royal Assent.
  • The program is estimated to cost $595 million in 2021-22.

• The Canada Emergency Wage Subsidy has protected more than 5.3 million jobs, to date. The program is currently set to expire in June 2021.

  • To give workers and employers certainty and stability over the coming months, the recent federal budget proposed to extend the Wage Subsidy until September 25, 2021.
  • This extension would see a gradual decrease of the Wage Subsidy rate, beginning July 4, 2021, in order to ensure an orderly phase-out of the program as the economy reopens.
  • Employers would be able to shift to the Canada Recovery Hiring Program as they transition to recovery and hire new workers.

• The Canada Emergency Rent Subsidy and Lockdown Support have helped more than 187,000 organizations with rent, mortgage, and other property expenses. The program is currently set to expire in June 2021.

  • To bridge Canadians through to recovery, the recent federal budget proposed to extend the Rent Subsidy and Lockdown Support until September 25, 2021.
  • This extension would see a gradual decrease of the Rent Subsidy rate, beginning July 4, 2021, in order to ensure an orderly phase-out of this program as the economy reopens.

• The Business Credit Availability Program (BCAP) loan guarantee and co-lending programs provide credit of up to $6.25 million and $12.5 million respectively. BCAP also provides support for mid-sized businesses including loans of up to $60 million per company, and guarantees of up to $80 million.  

• Through the Highly Affected Sectors Credit Availability Program(HASCAP), the Business Development Bank of Canada (BDC) partners with participating Canadian financial institutions to offer government-guaranteed, low-interest loans of $25,000 to $1 million to businesses across the country, with repayment periods of up to 10 years, in all sectors that have been hit hard by the pandemic. This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.

• For additional information on BCAP or HASCAP or to apply, businesses should contact their primary financial institution with whom they have a pre-existing relationship.

Related products

• Helping Hard-hit Businesses Hire More Workers with the Canada Recovery Hiring Program
• Extending Business Support Measures Through the Pandemic

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