432-00584 (Business and trade)

Representing 98% of businesses in Canada, small businesses are the cornerstone of the Canadian economy and pillars in their local communities. The Government of Canada is committed to supporting small businesses as they recover from the impacts of the COVID-19 pandemic and thrive into the future.

While the majority of businesses in Canada have been impacted by the COVID-19 pandemic, smaller businesses have been significantly more affected. Small businesses are more likely to experience a decrease in revenue and have less liquidity, and more likely to be unable to take on more debt and to be considering bankruptcy in the current economic environment. Since the beginning of this pandemic, the Government of Canada has supported Canadian businesses of all sizes and in all sectors who have been impacted by COVID-19 and its economic fallout.

The Government of Canada took immediate action to support those businesses, particularly by introducing new measures as part of Canada's COVID-19 Economic Response Plan, the largest economic assistance program in our history. The Government of Canada will continue to preserve hundreds of thousands of jobs by working to help the hardest-hit sectors (particularly tourism and hospitality, airlines, retail, aerospace, oil and gas) and by providing additional support for other businesses which have been hit the hardest, including Main Street businesses, as well as women- and minority-owned businesses.

As the pandemic continues to evolve, so does Canada’s approach. In September's Speech from the Throne, the Government committed to take further steps to help vulnerable businesses pull through. In particular, the Canada Emergency Wage Subsidy has been extended through to June 2021. More than 1.9 million claims have been approved to date. The updated Canada Emergency Rent Subsidy is a significant program that responds directly to the feedback the Government has heard from Canadian businesses. These measures have been extended until June 2021 and expanded to allow tenants to apply directly to the program, without going through their landlord to get the support their business needs to keep their doors open. Additionally, the Canadian Emergency Business Account (CEBA), which initially provided $40,000 loans to eligible small businesses to help with fixed costs, is now raised to $60,000. This funding is provided at zero interest until December 31, 2022, and 25% is forgivable if paid before that date. Also, the Regional Relief and Recovery Fund (RRRF), provides over $1.5 billion in assistance to businesses and communities that may require additional support to cope with and recover from the pandemic. Furthermore, in February 2021, the Government implemented the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee, a credit availability program with 100% government-backed loan support and favourable terms for businesses that have lost revenue as people stay home to fight the spread of the virus.

In recognition of the challenges faced by women entrepreneurs, Canada provided a targeted response to support women entrepreneurs specifically. The Government has provided an additional $15 million in funding to the Women Entrepreneurship Strategy (WES) Ecosystem Fund, enabling existing recipient organizations to provide thousands of women entrepreneurs with access to urgent business support in the context of the COVID-19 pandemic. Additionally, on September 9, 2020, Canada’s Prime Minister Justin Trudeau announced the Black Entrepreneurship Program, the first of its kind in Canada. This program is designed to break down systemic barriers to start, maintain, and grow a business among Black entrepreneurs. The Government is also providing funding of up to $306.8 million to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses. This measure will help an estimated 6,000 Indigenous-owned businesses get through the pandemic. Furthermore, to support young entrepreneurs through this pandemic, the Government provided $20.1 million to Futurpreneur Canada, a key national organization aimed at helping young Canadians develop their business ideas and access financing.

The Government of Canada is committed to examining any further supports needed to ensure that Canadian small businesses can continue to remain viable now and in the future.