Question Period Note: SME SUPPORT FOR EMPLOYEES DURING COVID-19

How is the Government of Canada helping small and medium-sized businesses support their employees?

• Canada’s COVID-19 Economic Response Plan has protected millions of jobs, provided emergency support to families, and supported businesses throughout the pandemic.

• The Government of Canada has surpassed its target of creating a million new jobs.

• By supporting the hardest-hit sectors and those most affected while recognizing that broad-based assistance is no longer needed, the government will continue to prioritize job creation and a strong economic recovery.

• The government is also creating the Canada Recovery Hiring Program to help businesses hire more workers as the economy reopens.

Tourism and Hospitality Recovery Program (THRP)
Provides support through wage and rent subsidies to selected tourism and hospitality industries with a subsidy rate of up to 75%. Eligibility would generally be restricted to organizations for which more than 50% of their pre-pandemic revenues were earned from carrying activities in eligible tourism and hospitality industries. The program runs from October 24, 2021, to May 7, 2022.

Hardest-Hit Business Recovery Program (HHBRP)
Provides similar support as the THRP, but for those industries that are not included in the eligible industries’ list, but which have experience significant hardship. Eligibility requirements qualifications are more rigorous, being an average monthly revenue reduction of at least 50% between March 2020 and February 2021 and a current-month revenue loss of at least 50%. The maximum subsidy rate for this program is 50%. The rent and subsidy rates will be reduced by half starting March 13, 2022, until the end of the program.

Local Lockdown Program
Provides businesses that face new local lockdowns with up to the maximum amount of support available through the wage and rent subsidy programs. The regulatory changes announced on December 22, 2021, temporarily expanded from December 19, 2021, to March 12, 2022, the initial eligibility requirement to include employers subject to capacity-limiting restrictions of 50% or more and reduced the current-month revenue decline threshold requirement to 25%. The program is available until May 7, 2022.

Canada Worker Lockdown Benefit
Provides $300 a week to eligible workers who are unable to work due to a temporary local lockdown anytime between October 24, 2021, and May 7, 2022. The benefit is only available when a COVID-19 lockdown order is designated for a region.

Canada Recovery Sickness Benefit
Provides $500 per week for up to six weeks, for workers who are unable to work for at least 50% of the week because they contracted COVID-19, are self-isolated, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that would make them more susceptible to COVID-19. This benefit is available until May 7, 2022.

Canada Recovery Caregiving Benefit
Provides $500 per week for up to 44 weeks per household for workers who are unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.

Canada Recovery Hiring Program
This program will offset a portion of the extra costs employers take on as they reopen, either by increasing wages or hours worked, or hiring more staff. Eligible employers would claim the higher of this program, the wage portion of the THRP, or the HHBRP. The program is extended to May 7, 2022.

Jobs and Growth Fund
The Fund is a $700-million program that supports regional job creation and positions local economies for long-term growth. This includes up to $70 million dedicated to businesses created after January 2020. The Fund will help businesses and organizations that support the transition to a green economy, foster an inclusive recovery, enhance Canada's competitiveness through digital, and strengthen capacity in sectors critical to Canada's recovery and growth.

Extending the Work-Sharing Program
The government has extended the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19.`

n/a