Extending Credit Support for Businesses
The Highly Affected Sectors Credit Availability Program has been providing government-guaranteed, low-interest loans of up to $1 million to organizations that have seen significant revenue losses as a result of the pandemic. Access to affordable liquidity support fills a gap in the credit market for hard-hit businesses and allows them to maintain operations and invest in their recovery. As of October 31, 2021, more than 11,500 loans representing almost $2.7 billion have been provided through this program.
The government is extending the Highly Affected Sectors Credit Availability Program to March 31, 2022. This program was set to expire on December 31, 2021.
The Business Development Bank of Canada will continue to work with lenders to support access to capital for Canadian businesses of all sizes in all sectors and regions.
Extending the Canada Recovery Hiring Program
Workers are the backbone of our economy and of every business’ success. In order for our economy to recover and grow, we need to make sure to support the creation of good jobs in sectors across the economy. In Budget 2021, the federal government created the Canada Recovery Hiring Program to do just that. By extending the Canada Recovery Hiring Program, the government can encourage employers to hire back workers and increase workers’ hours and wages.
On October 21, 2021, the government proposed extending the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10 per cent, and to increase the subsidy rate to 50 per cent. On November 24, 2021, the government introduced the necessary legislation for this extension at the first opportunity after parliament resumed.
Targeting Supports for Businesses Affected by the Pandemic
The government recognizes that while the recovery is underway, it is still uneven. Some businesses are deeply affected and have faced deep and enduring losses. In order to support these businesses and make sure they can recover and grow, the government has introduced legislation to adapt pandemic support programs and target them to organizations that have been deeply affected by the pandemic.
Support for Tourism and Hospitality Businesses
The Tourism and Hospitality Recovery Program would provide support through wage and rent subsidies to organizations in the tourism and hospitality sectors such as hotels, tour operators, travel agencies, restaurants and organizations that plan and host festivals or live performances, with a subsidy rate of up to 75 per cent.
Support for Hard-hit Businesses in All Sectors
The Hardest-Hit Business Recovery Program would provide support through wage and rent subsidies to organizations that have faced deep losses, with a subsidy rate of up to 50 per cent.
Support for Businesses Facing Pandemic Lockdowns
The Local Lockdown Program would provide organizations that face new local COVID-19-related lockdowns with up to the maximum amount available through the wage and rent subsidy programs.
These programs would be available until May 7, 2022, with the proposed subsidy rates available until March 12, 2022. From March 13 to May 7, 2022, the support would decrease by half, in anticipation that the virus will be even more fully under control and our recovery will be firmly taking hold in all areas of the economy.
Lockdown Support would continue to provide additional rent support of 25 per cent and be pro-rated based on the number of days a particular location was affected by a lockdown until May 7, 2022.