432-00872 (Business and trade)

Response to part 3:

The Government of Canada has taken a number of measures to ensure that our economic recovery is as robust and rapid as possible. Since the pandemic began, the Regional Development Agencies (RDAs) and Community Futures Organizations (CFs) have been delivering the Regional Relief and Recovery Fund (RRRF) as a backstop to other broad-based programming. The RRRF helps SMEs whose basic liquidity needs are not addressed by other programs with repayable contributions to continue operations and sustain jobs through the pandemic. Since the Government launched the RRRF in April 2020, the six RDAs and nearly 270 CFs fund have delivered over $1.5 billion to more than 22,000 businesses and organizations helping to preserve over 165,000 jobs across the country. Recognizing that the tourism sector has been particularly hard hit as a result of the pandemic, 25% of the over $2 billion in liquidity support is earmarked for tourism-related businesses and organizations nation wide.

Budget 2021 presents a plan to get through the pandemic, create jobs, and make sure Canada’s economy recovers effectively. The Government of Canada recognizes that workers and businesses in the tourism sector and those in the hospitality, events and culture industries have been particularly hard hit by the pandemic. For this reason, and as noted in Budget 2021, businesses and non-profit organizations in these sectors have received an estimated $15.4 billion through federal emergency support programs to date. 

Budget 2021 outlines a number of new investments that are targeted toward the tourism sector and its recovery. This includes a $500 million Tourism Relief Fund to support businesses and organizations in undertaking a wide range of activities to help them recover from the pandemic and position themselves for future growth. The Fund will help to revitalize the tourism sector in Canada, while bringing concrete economic benefits to communities of all sizes throughout the country.  Budget 2021 also  announced $200 million to support Canada’s major festivals as well as$200 million for local festivals and event.

It also includes $100 million to support Destination Canada’s marketing domestic and international activities to help visitors discover and explore the country.  As part of this investment, Destination Canada, through its Business Events Canada division, will work with major municipal Destination Marketing Organizations on strategies to attract business events and conferences to Canada’s biggest cities.

Response by The Minister of Small Business, Export Promotion and International Trade     

Signed by (Minister or Parliament Secretary): Rachel Bendayan     

Response to part 4:          

The Government of Canada is continuing to adapt measures that will support Canadians through the pandemic and drive a robust and resilient recovery. Highly Affected Sectors Credit Availability Program (HASCAP) provides support to hard-hit businesses that require additional capital, based on having already benefited from other programs such as Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy, and Canada Emergency Business Account – which are either fully supported or partially forgivable – to help them bridge to the other side of the COVID-19 pandemic.  Understanding that many small and medium-sized enterprises are concerned with taking on more debt, loans will have flexible repayment terms of up to 10 years and principal payments that may be delayed by up to 12 months, and the HASCAP interest rate – at 4% – is a favourable rate for hard hit businesses. Further, personal guarantees are not taken under HASCAP.

HASCAP was launched on February 1, with now 51 financial institutions participating. Interest in the program has been high with approximately 1000 expressions of interest per week as at mid-March. The total of authorizations and applications in progress is 4400 as of April 25.                                                                   

Department of Finance

The Government thanks the petitioners for expressing their views about support for the commercial events sector.

As of May 2, 2021, the Canada Emergency Wage Subsidy has helped more than 5.3 million Canadians keep their jobs and provided more than $77 billion in support to the Canadian economy. As of May 2, 2021, the Canada Emergency Rent Subsidy and Lockdown Support have helped more than 177,000 organizations with rent, mortgage, and other expenses, and provided $3.3 billion in support.

The wage subsidy, rent subsidy, and Lockdown Support programs are currently set to expire in June 2021. In order to bridge Canadians through the rest of this crisis to recovery, continued support is needed. To give workers and employers certainty and stability over the coming months, Budget 2021 proposes to extend these programs until September 25, 2021. Extending these support measures will mean that millions of jobs will continue to be protected. The Government is also seeking the legislative authority to have the ability to further extend the wage subsidy, rent subsidy and Lockdown Support programs through regulations until November 20, 2021, should the economic and public health situation require it beyond September 2021.

The rent subsidy is a broad-based, legislated program and as such, requires straightforward, objective rules that can accommodate organizations of all sizes and sectors, while still maintaining the integrity of the program. For that reason, eligible expenses are limited to those paid under agreements in writing entered into before October 9, 2020 (and continuations of those agreements).