CIMA has provided most of the following summary of today's announcement from Prime Minister Trudeau and Finance Minister Bill Morneau about the financial relief measures being taken to help individuals and businesses during the COVID-19 crisis. These are just the parts of the announcement that are most relevant to musicians and small companies in the music industry. For the government's full announcement and list of new measures, go HERE.
The Federal Government has announced new measures for people and business. Earlier today, Prime Minister Trudeau and Finance Minister Bill Morneau unveiled the federal government’s economic response plan to address the increasing and rapid financial impacts of COVID-19. The package includes $27 billion in direct support to Canadians and businesses, and a further $55 billion to meet liquidity needs for businesses and households through tax deferrals.
SUPPORT FOR SELF-EMPLOYED, SMALL BUSINESS AND NON-PROFITS/CHARITIES
1. Introduction of an Emergency Care Benefit of up to $900 bi-weekly for up to 15 weeks to provide income support to workers who must stay home and do not have access to paid sick leave. This measure could provide up to $10 billion to Canadians, and includes:
- Workers, including the self-employed who are sick, quarantined, or who have been directed to self-isolate but do not qualify for Employment Insurance (EI) sickness benefits.
- Workers, including the self-employed who are taking care of a family member who is sick with COVID-19, such as an elderly parent or other dependents who are sick, but do not qualify for EI sickness benefits
- EI-eligible and non-EI-eligible working parents who must stay home without pay because of children who are sick or who need additional care because of school closures.
2. Introduction of an Emergency Support Benefit delivered through the Canada Revenue Agency to provide up to $5 billion in support to workers who are not eligible for EI and who are facing unemployment.
3. Providing eligible small businesses with a 10% wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Employers benefiting from this measure would include corporations eligible for the small business deduction, as well as not-for-profit organizations and charities. This will help employers keep people on their payroll and help Canadians keep their jobs.
4. Increasing the credit available to small, medium, and large Canadian businesses. As announced on March 13, a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada.
5. Provide flexibility on the Canada Account limit, to allow the Government to provide additional support to Canadian businesses, when deemed to be in the national interest to deal with exceptional circumstances.