CFIB applauded the announcement on May 8 by Prime Minister Justin Trudeau that the federal government will extend the Canada Emergency Wage Subsidy (CEWS) program, which is set to expire on June 6.
This was one of the top recommendations CFIB shared with all MPs in听听earlier this week. I give credit to the government for listening carefully to the concerns of small businesses who were worried that this needed support would run out before many are even able to reopen their doors.
With the shutdown now approaching the start of a third month, it is important to remember that only 20 per cent of Canada鈥檚 small businesses are fully open. Most businesses that were forced to lay off staff at the beginning of the crisis will not be in a position to rehire and use the program until they are able to resume operations. As provinces are just now beginning to allow some businesses to carefully reopen, the CEWS program will become an important part of a recovery plan. Extending the program beyond June 6 will allow more firms to rehire staff as they re-open but face very thin revenues in early months.
Earlier this week, CFIB shared听听on other important fixes to all the major support programs, including the Canada Emergency Business Account (CEBA) and the Canada Emergency Commercial Rent Assistance (CECRA) Program. These included the immediate need to expand CEBA to very small firms that pay dividends or contract wages, and the need to ensure there is a direct route to help tenants pay rent if their landlords choose not to participate in CECRA.听
CFIB looks forward to working with government on a longer-term plan to phase out these support programs as small businesses embark on the slow return to normal operations.
