More Canadian businesses will be able to access a government-backed loan to get through the COVID-19 crisis as Ottawa unveiled new measures on Thursday (April 16th) to increase and decrease their program's eligibility threshold.
In his daily press briefing from Ottawa, Prime Minister Justin Trudeau said businesses that spent between $20,000 and $1.5 million in total payroll in 2019 will be eligible for assistance from the Canada Emergency Business Account.
The interest-free loan program offers businesses a loan of up to $40,000. It was previously only available to businesses with payrolls worth between $50,000 and $1 million.
“This is money entrepreneurs and employers can use to cover operational costs and help with other immediate needs,” Trudeau said.
Also, up to $10,000 of the loan is non-repayable.
Trudeau said 195,000 loans amounting to some $7.5 billion dollars have been approved since the program opened for applicants last week.
The Prime Minister also introduced a relief measure called the Canadian Emergency Commercial Rent Assistance Program, which aims to help businesses with their rent for April, May and June.
In order to implement this program, Ottawa will have to work directly with the provinces and territories as “they govern rental relationships,” Trudeau said, adding that he will provide more details “soon.”