In today’s announcement from the government, Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, announced extensions and expansions for the Canada Emergency Wage Subsidy and the Canada Emergency Business Account programs.
Extension to the Canada Emergency Wage Subsidy (CEWS) program
As alluded to in the throne speech in late September, the CEWS program has been extended until June 2021. In addition, the subsidy will remain at the current (Period 8) subsidy rate of up to a maximum of 65 per cent of eligible wages through Period 10 (until December 19, 2020).
Expansion of the Canada Emergency Business Account (CEBA) program
The announcement included the following plans for expansion of the Canada Emergency Business Account (CEBA) program to continue support for those organizations most seriously impacted by the pandemic.
- Organizations will receive access to an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022.
- An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
- The application deadline for CEBA is extended to December 31, 2020.
Further details including the launch date and application process will be announced soon.
To learn more about the loan program, visit our program overview.