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Canadian News

Canada Extends Economic Aid, U.S. Border Closure

Adjustments have been made while provinces lay out reopening plans.

As the number of confirmed COVID-19 cases begins to decline gradually in many parts of Canada, the government has announced business aid extensions to put the country back on financial track.

Prime Minister Justin Trudeau has announced that the 75% Emergency Wage Subsidy will be extended until Aug. 29 (initially slated to last until early June) and encouraged companies to take advantage of the subsidy to rehire workers they had to lay off, in order to help with economic recovery.

Businesses Opening Soon

“To employers looking to start up again, please rehire your workers,” he said during a news briefing on May 19. “Use the wage subsidy for their paycheck. That’s what it’s there for.”

In addition, the government has expanded eligibility criteria for the Canada Emergency Business Account (CEBA), which provides interest-free business loans of up to $40,000 for small businesses. Now, sole proprietors that receive income directly from their businesses, businesses that rely on contractors and family-owned corporations that pay employees through dividends rather than payroll may also qualify. Trudeau said 600,000 businesses have already applied for the loans since the program was implemented.

Small Business Minister Mary Ng announced the same day that employers without a payroll of at least $20,000 can now apply for a CEBA loan. However, they do need a business operating account at a participating financial institution and a CRA business number; to have filed a 2018 or 2019 tax return; and to have eligible non-deferrable expenses (including rent, property taxes, utilities and insurance) between $40,000 and $1.5 million.

More details on the application process will be released in the coming days, said Trudeau, who added that the government is also extending more funding to regional development agencies.

Trudeau also announced that, by mutual agreement with the U.S., Canada’s southern border will remain closed to all nonessential travel for another 30 days, until at least June 21. “This is an important decision that will keep people in both of our countries safe,” he said on May 19.

At the provincial level, Ontario Premier Doug Ford announced that, although there were hopes that students would return to school for a few weeks in June, he’s made the decision to keep schools closed at least until September.

“One thing I will never do is take unnecessary risk when it comes to our children,” said Ford during a briefing on May 19. “That’s why, after careful consideration, after consulting with the health experts, it is clear that we cannot open schools at this time. I’m just not going to risk it.”

Virtual learning will continue, Ford added, and all students from kindergarten through 12th grade will receive report cards, while day cares will start to reopen gradually once the province reaches Stage Two (it’s currently preparing for Stage One, which includes “low-risk workplaces” such as construction, retail with street entrances, car dealerships and driving ranges).

Meanwhile, in Montreal, Premier François Legault said retail will be allowed to reopen on May 25, and day-care centers on June 1. Schools will remain closed there until September. Quebec has had the most confirmed cases among Canada’s provinces, but on May 19, it had its lowest increase since April.

“The trend is good, allowing us to make a certain bet,” said Legault during a briefing. “To win the bet, I need the cooperation of all Quebecers. We need Quebecers to respect the rules, staying at two meters, [and] to wear a mask when they cannot, so we can prevent the relaunching of the virus.”

Here’s where the other provinces stand in their reopening progress:

Newfoundland and Labrador: The government has relaxed some public health restrictions, which will continue in a series of “alert levels” descending from five. The province is currently in level 4, with low-risk workplaces allowed to reopen.

Prince Edward Island: Some health measures have been relaxed during Phase One of its reopening plan. Phase Two will allow some retail to reopen starting May 22, followed by Phase Three on June 1, which will allow for gatherings of up to 15 people indoors and 20 people outdoors, resumption of organized recreational activities and reopening of day care and dine-in services.

Nova Scotia: As part of its phased opening plan, parks and trails are now open, though playgrounds are still closed, and the public is now allowed to fish and garden. Many organized recreational activities are now permitted and beaches are open. At-home socializing is allowed, but limited to two families in one house.

New Brunswick: The province moved into the second phase of its reopening plan earlier this month, which allows for the reopening of retail and resumption of elective surgeries and other non-emergency medical services. Physical distancing must remain implemented, and licensed day cares are now open. At-home socializing is allowed, but limited to two families in one house.

Manitoba: Elective surgeries have resumed, and retail is allowed to open with social distancing measures in place. Phase Two will begin no sooner than June 1, and will allow for larger public gatherings, dine-in services and non-contact kids’ sports.

Saskatchewan: The province has implemented a five-phase reopening plan. Phase One reopened many non-emergency medical services as well as low-risk outdoor recreation. Phase Two began May 19 and allows retail and personal care businesses to reopen.

Alberta: The first phase of opening started May 14, with some retailers, museums, day cares, summer camps and salons allowed to open. Outdoor gatherings are now open to 50 people, up from 15. Movie theaters and spas are slated to reopen beginning June 19, though the plan will continue to be reassessed.

British Columbia: Students have been given the option to return to classrooms part time starting June 1, with social distancing measures in place. Officials expect a full-time return in the fall, while post-secondary education students will most likely have a combination of in-person and digital learning. Restaurants, retailers, personal care, museums and childcare were given the option to reopen on May 19.

All provinces and territories currently have restrictions in place on nonessential travel across provincial borders.