Canada Launches $65 Billion Emergency COVID-19 Business Loans Fully Funded By The Government
Today, Finance Minister Bill Morneau and Mary Ng, Minister of Small Business, Export Promotion and International Trade, launched Canada’s Small Business Emergency Fund.
Supporting small and medium-sized businesses during this unprecedented time of crisis is an integral part of Canada’s COVID-19 Emergency Economic Plan.
Small businesses are the backbone of the economy—they give our communities their character, and provide good jobs that support families across the country.
“In addition to our government’s direct support measures, we have heard from many Canadian businesses and entrepreneurs that they need help with cash flow and paying their operating costs, such as rent and utilities.” Said Minister Morneau
Starting today, small business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions. Businesses should access the Canada Emergency Business Account through their primary lender, where they have a pre-existing relationship. Businesses that are impacted can contact them by phone or email to find out about their application process.
Eligible small business and non-profit organizations can get interest-free loans of up to $40,000. If the loan is repaid by December 31, 2022, 25% of it will be forgiven, up to $10,000. These loans are fully funded by the Government of Canada.
This initiative is being delivered as part of the Business Credit Availability Program (BCAP), which is providing a total of $65 billion through banks and credit unions in the form of loans to small and medium-sized businesses. By working closely with Export Development Canada and the Business Development Bank of Canada, these financial institutions will offer loans that fill gaps in market access and leverage additional lending by private sector institutions.
“We strongly encourage businesses affected by COVID-19 to contact their primary lender, whether a bank or credit union, to discuss how they can benefit from the Canada Emergency Business Account. Loans will be made available through banks of all sizes as well as credit unions.”The government will continue to do whatever it takes to support businesses, all Canadians, and the economy, so that we are strong and ready to succeed in the recovery that will come.” Said Minister Ng