TORONTO — The Canadian government is increasing a payroll subsidy to small- and medium-sized businesses to now cover up to 75% of salaries amid the pandemic.
Prime Minister Justin Trudeau announced the major increase over the original 10 percent subsidy plan. Trudeau said it became clear they needed to do much more.
“We have to get through these coming months of restricted economic activity when people need to stay home,” Trudeau said Friday.
The prime minister said it means people will continue to be paid even though their employer has had to slow down or stop its operations because of COVID-19.
He said he hopes employers who are being pushed to lay off workers will think again. And he hopes those who have already let people go will reconsider given the new wage subsidy. It is backdated to March 15.
“We’re going to be here for you,” Trudeau said. “Small- and medium-sized businesses are the backbone of our economy. You are collectively our biggest employer.”
Benjamin Bergen, executive director of the Council of Canadian Innovators, said the government is finally hearing the concerns from the business front lines with the wage subsidies. He said many companies may go bankrupt in April.
Trudeau, meanwhile, said it would be a mistake for the Trump administration to position troops near the Canadian border. He said he’s told that to the White House, and that he’s still seeking clarity on American plans. The Wall Street Journal, citing an unidentified U.S. official, reported late Thursday that the Trump administration had dropped its consideration of the plan.
The prime minister said when he knows more, he’ll share the information with Canadians.
