The Federal Government Introduces a 75% Wage Subsidy for Small & Medium-Sized Businesses Including Nonprofits

On March 27, the federal government announced that there will be additional assistance to small and medium-sized businesses with a 75 percent wage subsidy – a jump from the 10 percent wage subsidy announced last week. Minister of Finance, Bill Morneau, later indicated in an interview that nonprofits and charities are eligible for the wage subsidy. This measure will be backdated to Sunday, March 15.

Although details are still being finalized, the 75 percent wage subsidy is intended to help keep employees on the payroll during the COVID-19 pandemic. Additionally, it is meant to provide relief and security to nonprofits and nonprofit employees. The nonprofit and charitable sector employs over two million people and demands for services are increasing with some organizations left with minimal financial support. CCVO hopes that this helps the sector avoid laying off staff and hire back those who already have been laid off.

As of March 30, we have more details for your organization:

• Applies only to businesses, nonprofits, and charities that have had their revenues decrease by 30 percent due to COVID-19;

• There are no restrictions regarding the number of employees your organization has. This means that large or small nonprofits or charities are eligible;

• The government will cover up to 75 percent of an employee’s salary on approximately the first $58,700 amounting to $847 a week;

• Wage subsidy will be backdated until March 15.

More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month by the government.

CCVO will be monitoring the federal announcement and will update the sector on these developments.