Government announces new Canada Recovery Hiring Program and extension of business support programs
Colleen CrossNews Business and Operations Finance
Ottawa – A new Canada Recovery Hiring Program will be available retroactively to June 6, 2021, to help hard-hit businesses hire the workers they need to recover and grow as local economies reopen.
The program would provide a subsidy of up to 50 per cent of eligible salary or wages. It would be available to eligible employers who have experienced qualifying revenue declines so they can hire more workers, increase workers’ hours, or increase wages. This support would afford businesses with certainty that they can take on the extra costs needed to rehire and be ready to return to growth.
As with the Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy, businesses would be able to access the program through the Canada Revenue Agency (CRA). Support would be available retroactively to this Sunday, June 6, 2021, and businesses would be able to hire workers as their local economy reopens, or as they are ready.
The Deputy Prime Minister and the Minister of Small Business also detailed the proposed extension of business support programs. This includes the proposed extension of the Wage Subsidy, Rent Subsidy, and Lockdown Support until September 25, 2021. These programs are currently set to expire at the end of June.
The Hiring Program is designed to interact with the Wage Subsidy. The programs overlap so that, as Wage Subsidy rates gradually decline, eligible employers would still be able to receive the maximum support from the Hiring Program this summer if they hire more workers or increase workers’ hours or wages. This is meant to make it easy for businesses to quickly hire new workers and do so at a pace that works best for them, as different jurisdictions reopen their economies at different paces.
The Deputy Prime Minister and the Minister of Small Business also announced that the Business Credit Availability Program and Highly Affected Sectors Credit Availability Program are being extended to Dec. 31, 2021, with the intention of helping provide cash flow. Both programs were set to expire on June 30.
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