The federal government has new guidelines for businesses and workers in light of COVID-19.
The $1 billion package is intended to help Canada's economic and health care sectors cope with the novel coronavirus outbreak as the number of new cases grows.
The government plans to provide financing to businesses through Crown lending agencies, such as the Business Development Bank of Canada, to help companies access credit to handle the economic shock.
The financing, announced by Prime Minister Justin Trudeau on Wednesday morning, will also waive the one-week waiting period to apply for EI, to encourage sick workers to take time off to recover.
Changes to the federal worksharing program, which supplements wages when workers cut hours to avoid layoffs, will target companies affected by COVID-19 by doubling the length of benefits to 76 weeks from 38.
The government said in a release that it is offering flexible payment plans to help businesses meet their tax obligations to the Canada Revenue Agency, which business groups have said should help with cash-flow issues.
The Liberals are also waiving the waiting period for employment insurance payments for people who take time off work and self-isolate due to illness.
"I think it's a great start and I applaud the government for taking quick action," with the stimulus package said Rocco Rossi, president and CEO of the Ontario Chamber of Commerce.
The most important part of the announcement is the accelerated access to EI benefits, Rossi said.
Forcing workers and business owners to choose between quarantine and work would be "an unreasonable burden to put on particularly small and medium sized businesses," Rossi said
Rossi said that the measures are a welcome start, noting Trudeau said more help may come available as the situation develops.
The Canadian Federation of Independent Business wants the province to step up as well.
"We're asking not only the federal but the provincial governments to provide flexibility on the assessment of penalties and interest say on GST and HST filings … many businesses have seen their sales halved," in the wake of the coronavirus, said Dan Kelly, president and CEO of the Canadian Federation of Independent Business.
"CFIB is pleased by today's federal announcement that employees who must stay home can now access Employment Insurance without a one-week waiting period. This will help both workers and employers, including many small firms that are not able to offer any sick time or enough to last during a period of quarantine," the federation said in a statement.
The CFIB is urging the government to consider providing relief from penalties and interest for late sales taxes and to consider "relief measures" for those struggling with a significant impact on their business.
"Many businesses in tourism or those serving the Asian-Canadian community have seen a dramatic drop in sales, and allowing business owners to reduce hours will help them protect jobs," the statement said.
Kelly said small businesses — especially those in the transportation, tourism, hotel and food service sectors — have been particularly hard hit. This is not the first time the government has offered aid: similar help was given during the Newfoundland blizzard.
The measures mirror those rolled out during the SARS outbreak in 2003, when the government waived the one-week EI waiting period to encourage workers to stay home and self-isolate, said Laurell Ritchie, co-chair of the EI Working Group.
But the measures don't go far enough to support precarious workers, Ritchie said.
"They don't even cover off the ground that was covered during the SARS period," Ritchie told the Star. At that time, a worker information hotline was established to update the public on the most recent news, and the need for a medical certificate to qualify for EI was waived.
While the Prime Minister said the waiting period for EI would be waived, it is not clear whether or not that will apply retroactively, Ritchie said.
"That is an issue because there are people who've been off since February," she said.
The package also includes:
•$500 million to help provinces and territories buy equipment, increase testing for COVID-19, and enhance surveillance and monitoring.
•$275 million for research for a vaccine.
•$50 million to help buy masks and other supplies for health-care workers.
Jenna Moon is a breaking news reporter based in Toronto. Follow her on Twitter: @_jennamoon
