Much-needed relief is on the way for small business customers as Canada’s large banks, including Scotiabank, work toward effectively implementing initiatives outlined by the federal government on Friday.
Each financial institution will have more information to share with their customers in the coming weeks as Ottawa clarifies its specific plans, the Canadian Bankers Association said in a statement.
“Small business owners are among those hardest-hit by COVID-19,” said Dan Rees, Group Head, Canadian Banking at Scotiabank. “Scotiabank, together with other leaders in the banking community, has been consulting with the government on measures to support small businesses through this time.”
Once all details of the support program are finalized with the government, Scotiabank will update its website with additional information. Customers can get information about existing relief measures here before calling or visiting the bank.
On Friday, Prime Minister Justin Trudeau announced additional new measures to support small businesses hit by the COVID-19 pandemic, aimed at helping to project jobs and assist with paying workers and bills as economic activity slows dramatically.
The measures include the launch of the new Canada Emergency Business Account, a program which the government says “will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero per cent interest rate, so they can pay for rent and other important costs over the next number of months.”
Trudeau also announced the launch of the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending -- supported through Export Development Canada and Business Development Bank - for guaranteed loans when small businesses go to their financial institutions to help deal with the impacts of COVID-19.
“We’re here to help customers navigate this time of uncertainty—in our branches, online 24/7, and over the phone,” Rees said. “Whether they reach us today, tomorrow, or later next week, we’ll do our best to help find a solution that works.”