On March 30th The Federal Government announced an expansion of a the previously announced wage subsidy program for small and medium sized business.
The new program has significantly expanded eligibility for the program and it now covers all businesses, of any type and size. There are, however, some key details that have emerged, and some details remain unknown.
What we know
The program will:
- Subsidize up to 75% of wages on the first $58,700 in earnings, which translates to a maximum of $847 per week.
- Be backdated to March 15, 2020
- Be only available to companies who have experienced a %30 drop in revenue.
What we don’t know
- How long will the program last?
- How will the revenue drop be calculated (weekly, monthly, yearly)?
- How will the program be administered?
- What will happen to companies who have experienced a lesser percentage drop in revenue?
We will update this memo as soon as more information is provided by the Federal Government.