Government’s loan makes huge difference in helping businesses – MP
Shady Salah – Media in Toronto
Parliamentary Secretary to the Minister of Small Business, Export Promotion and International Trade Rachel Bendayan said on Thursday that cash and liquidity is crucial for business owners right now, stressing that a lot of entrepreneurs said that the government’s $40,000 loan has made a huge difference in helping them to manage their operating costs in the short term.
Speaking during the webinar organized by National Angel Capital Canada – NACO Canada in “Roundtable on Activating Capital for All Entrepreneurs” the parliamentarian said “I know that it’s a $40,000 loan might seem small to some of the members on this call, but every single day I speak to entrepreneurs who tell me that this loan has made a huge difference in helping them to manage their operating costs in the short term and particularly because this money, once you apply for it at your local bank often appears in your account within 24 to 48 hours. It is also interest free which has been a huge relief to so many entrepreneurs, and as you may know, up to $10,000 of this $40,000 loan is forgivable if there, the balance is repaid by the end of 2022.
“About half a million have been approved for this loan through their bank or credit union. And we’ve expanded the payroll threshold in order to allow even more business. Businesses access to this fund. And right now we’re looking the criteria is between 20,000 to 1.5 million in payroll in 2019, in order to be eligible for this loan for businesses with larger operational needs. We’ve also made loans available, up to 12.5 million again available through your local and financial or financial institution if it’s a case computer, as well, to keep businesses, and together that the family unit is so important in many of our small businesses” she said.
Regarding the Canada emergency response benefit that’s the $2,000 per month, that is available to Canadians, the lawmaker said “I think it”s a great example of how we’ve tried to be nimble and adjust to the comments and feedback that we’ve received a lot of contract workers and freelance workers have had contacted me and others in government in order to say that they were unable to access its funding because they were making a couple of hundred dollars here and there, over the course of the month, and we therefore change this programme in order to allow people to make up to $1,000, a month and still have access to this funding.”