Home » Ottawa spending one other $600M to assist companies survive lockdowns

Ottawa spending one other $600M to assist companies survive lockdowns

by newsking24

The federal authorities is giving $600 million to assist small- and medium-sized companies cope with potential lockdowns amid a second wave of the COVID-19 pandemic, Radio-Canada has discovered.

The funding — geared toward sectors together with tourism, manufacturing and know-how — will likely be added to the $962 million already invested within the Regional Aid and Recovery Fund. The announcement will likely be made Friday by Prime Minister Justin Trudeau.

About $456 million of the brand new cash will likely be made accessible to assist companies struggling to bridge their funds by one other lockdown. It will likely be distributed by regional growth companies. 

Another $144 million will assist present capital and technical help to rural companies and communities by the workplaces of Community Futures Canada, which supplies small enterprise companies to rural communities. 

Infection charges are rising in sizzling spots throughout the nation, elevating considerations of government-ordered shutdowns much like these seen within the spring. 

More lockdowns might be deadly for a really giant variety of companies, says Jasmin Guénette, vice-president of nationwide affairs on the Canadian Federation of Independent Business (CFIB).

“This money will help several entrepreneurs to get through the crisis, but we have to make sure that these sums are available quickly,” Guénette advised CBC News.

The CFIB estimates that 160,000 or 14 per cent of small- and medium-sized companies in Canada are prone to closing their doorways for good as a consequence of COVID-19. The tourism, resort and catering sectors are notably threatened.

Several federal measures want a “new coat of paint,” stated Guénette.

For instance, the CFIB is asking for the industrial hire help program, which expired on Wednesday, to be renewed and made extra accessible to small companies.

The CFIB additionally needs to know extra in regards to the extension of the wage subsidy program for companies into subsequent summer season, as was promised within the Trudeau authorities’s speech from the throne.

The minister of financial growth indicated Thursday the federal government was making ready to supply extra assist. 

“Entrepreneurs in Montreal, all across Quebec, worked really hard to get through the first wave, then what we want to say to them today is: There is hope, we’ll help you get through the second wave,” Mélanie Joly stated in Ottawa, when requested about what assist the federal government will present throughout a second wave. 

Joly stated she acknowledges that the present state of affairs could be very troublesome. 

“We know we have to do more and we will do more,” she stated.

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