Ontario allocating $10 billion for local businesses to improve cash flow
The Province of Ontario announced that it will allocate $10 billion to support local businesses during the COVID-19 pandemic through Ontario’s Action Plan.
On Thursday, Premier Doug Ford said that Ontario is making $10 billion available to improve cash flows for people and businesses through tax and other deferrals over the coming months to provide relief during this challenging economic time, in coordination with the federal government.
“We want to do what we can to support businesses during this trying time,” Ford said.
Six billion in tax deferrals will be made available to support businesses, and the government is providing a five-month interest and penalty-free period for businesses to make payments for the majority of provincially administered taxes.
Starting on April 1, the province said it would be providing flexibility to about 100,000 businesses in Ontario to help manage their cash flows “during this challenging time.”
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The province also said that $1.9 billion in WSIB Expense Deferrals for Employers will be provided and $1.8 billion will be made available for deferring Municipal Education Property Tax Payments.
Ontario’s response to #COVID19’s economic impacts includes making $10 billion available to support people and businesses to improve cash flows. Learn more: https://t.co/xom38MTpLO pic.twitter.com/1UUCjL0Wty
— Ministry of Finance (@ONfinance) March 27, 2020
On Thursday, Ontario announced an additional $3.3 billion to support frontline health care workers and increase health care capacity in addition to the $17 billion relief funds announced on Wednesday.
Earlier on Wednesday, Prime Minister Justin Trudeau announced the federal government will be increasing its wage subsidy for small and medium-sized businesses to 75% to avoid layoffs.
According to Trudeau, this move will be backdated to March 15.
He said that small and medium businesses are the backbone of the community, “these places make our communities feel like home.”
Friday’s announcement was an increase from last week’s initial 10% wage subsidy from the federal government.
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