Prime Minister Justin Trudeau announced in his daily conference Thursday morning that the federal government expanded their loan program to include small- and medium-sized businesses, including salons and barbershops, suffering from the COVID-19 pandemic.
The Canadian Emergency Business Account will now provide up to $40,000 to businesses that had payrolls up to $20,000 and $1.5-million in 2019 (the original criteria included businesses between $50,000 and $1-million).
Smaller salon owners that did not originally qualify for this business loan will now be able to apply and use this money towards operational costs and any other immediate needs.
“Our government is here to help you through these challenging times. So when we hear the program is not reaching as many people as it should, we make changes,” he says.
If the business repays the loan by the end of 2022, $10,000 will be forgiven.
The federal government is also in the process of launching the Canada Emergency Commercial Rent Assistance program that would assist businesses and commercial landlords with their rental costs for the months of April, May and June. To bring this to fruition, the government plans on working alongside provinces and territories.