OTTAWA (NEWS 1130) — Nearly a quarter of a million small businesses have taken advantage of the federal government’s offer of interest-free loans in the first three weeks.
So far, more than 246,000 businesses have successfully received loans of up to $40,000, with a quarter of that amount forgivable.
In total, that equals around $7.8 billion of government-backed loans that have gone out.
The Minister of Small Business and Export Promotion Mary Ng says she expects the numbers to rise with the new expanded criteria.
“Now the eligibility is minimum payroll of $20,000, all the way up to $1.5 million,” she says.
Ng adds the loan program is meant to help with cash flow and operating expenses through this economic downturn.
“Help the business owner, manage the expenses that they have, while at the same time, keep their business in their company together,” she says.
Business lobby groups have welcomed the loan supports and wage subsidies from the federal government, but they say rental assistance is a crucial next step. Many need their rents reduced or eliminated, not just delayed through loans.
Ng says in addition to loans, wage subsidies, and other supports, the government is working with provinces to provide rental assistance to small businesses for the months of April, May and June.
“The job isn’t done, and we continue to listen, and we continue to work,” she says.
A new survey suggests up to 80 per cent of small businesses have entirely or partially shut down due to the COVID-19 pandemic.