Wage subsidy details to be announced Wednesday
April 1, 2020, 10:53 am
Details of the federal wage subsidy of up to 75 per cent for businesses that have seen a revenue decline of 30 per cent or more will be announced Wednesday.
The federal government originally announced a 10 per cent wage subsidy last week, limited to businesses that qualify for the Small Business Tax Credit.
On Monday, the Prime Minister announced the wage subsidy would be 75 per cent, and would apply to businesses of all sizes, charities and non-profit organizations that have seen their revenue decline by 30 per cent.
The question that wasn't answered was 30 per cent over what period and compared to what former period.
On Monday, Trudeau said his finance minister would lay out the details of the program during a briefing on Tuesday.
That briefing didn't happen and now Finance Minister Bill Morneau says he and Small Business Minister Mary Ng will instead provide more details during a Wednesday briefing.
Small businesses groups have been asking for more details as quickly as possible. Businesses of all sizes whose revenues have decreased by at least 30 per cent because of the COVID-19 pandemic are to be eligible for the subsidy, which is to be backdated to March 15.
It will cover 75 per cent of each employee’s wages, to a maximum of $847 a week. The government had previously said the subsidy program would be good for three months.
Morneau is expected to provide a dollar figure for the promise Wednesday
RBC estimated the value of the wage subsidy at $28 billion.
The federal bailout package to date is now valued at more than $200 billion, including $52 billion in direct spending, $85 billion in tax deferrals for individuals and businesses, and $65 billion in loans.