By Canadian Press

Ottawa expanding loan program for small businesses hit by COVID-19

Apr 16, 2020 | 8:38 AM

OTTAWA — Prime Minister Justin Trudeau says the federal government is expanding a loan program for small businesses suffering from the COVID-19 pandemic and is working on a new support for companies having trouble paying rent.

The loan program will now be open to businesses that had payrolls last year between $20,000 and $1.5 million.

The Canada Emergency Business Account previously offered up to $40,000 in loans to business with payrolls between $50,000 and $1 million.

Trudeau says 195,000 loans worth a total of $7.5 billion have so far been approved.

But he says some businesses and entrepreneurs in need had been excluded, which is why the criteria are being expanded.

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Trudeau also says a program is coming to help businesses cover rents for at least three months but the details still need to be worked out with the provinces and territories.

“We will always be there to support our Canadian businesses,” Trudeau said. “Expanding the Canada Emergency Business Account and making sure businesses can afford their rent is the smart thing to do. Small businesses are the backbone of our communities, and will keep our economy strong in this uncertain time.”

This report by The Canadian Press was first published April 16, 2020.

The Canadian Press