It is quite evident that the pandemic situation caused by the coronavirus has hampered the growth of many small businesses. Merchants that operate their business offline had to close their shops for so many months. The cash flow remains zero and on the other side, the post-pandemic situation does not promote cash transactions. Therefore, workers and those hard-hit businesses are not in a good situation. Governments of different nations have taken important steps to solve this problem and Canada is not an exception.
The news regarding the Federal Government of Canada is that they are spending almost $7.4 billion in order to create and extend the COVID-19 supports for the workers and hard-hit businesses. Chrystia Freeland who is the Finance Minister and Deputy Prime Minister is of the opinion that those new measures will replace the CEWS. It is also known as Canada Emergency Wage Subsidy. Apart from this, the Government is also planning to stop the Canada Emergency Rent Subsidy that is called CERS.
Talking about the positive aspects of this wage subsidy, well, the Government has already helped more than 210,000 organizations and they also helped people with a mortgage, rent, and many more expenses. The Government also admitted this thing.
Anyway, COVID-19 funding is replacing those wage subsidies as mentioned by the Federal Government. In a recent press conference, the Finance Minister has said that the Hospitality and Tourism Recovery Program will take into effect shortly. She also said that Government is planning to provide less expensive, more targeted, and narrower support. People should not be discouraged and together, they will be able to bring down this pandemic situation.
Talking about the Tourism and Hospitality Recovery Program, well will provide rent subsidies and wages to the tour operators, travel agencies, and restaurants and hotels.
There is another program that is called Hardest-Hit Business Recovery Program. It will provide support through rent subsidy and wage programs for those businesses that have experienced very deep losses.
There is a two-key system that will determine the eligibility for these two programs. The Government will check whether the employer has faced any loss in the past 12 months amid the pandemic situation. If they faced significant loss, they will eligible for the program. Secondly, the government will check the revenue loss of the applicants of the current month. According to the Government, these two programs will be continued until 7th May 2022. These programs will definitely help the small merchants to elevate their businesses.