The federal government has relaxed the criteria for its Canada Emergency Wage Subsidy, or CEWS, but not enough to satisfy the organization representing Canadian innovators.
Prime Minister Justin Trudeau on Wednesday said the government wants to make it easier for fast-growing companies to take advantage of the program.
He had announced two weeks ago that the government would provide a 75 percent wage subsidy to Canadian businesses impacted by the pandemic. But he later added only companies whose monthly revenues had declined 30 percent or more year-on-year would qualify. That eligibility criterion effectively excluded many high growth companies, whose revenues are doubling each year.
“Our government understands that not all businesses operate the same way,” said Trudeau on Wednesday. “We will keep listening, but we really hope you will use this help from your country and from your fellow citizens to rehire and pay your workers.”
The Prime Minister said the government has amended the year-over-year revenue decline criterion from 30 percent to just 15 percent for the month of March. The 30 percent reduction is still necessary to receive the subsidy in April and May.
He added that companies have the option to compare their sales decline to January and February 2020 rather than a year-over-year decline.
Though it did not criticize the latest announcement, the Council of Canadian Innovators said it plans to hold further talks with Small Business Minister Mary Ng and Navdeep Bains, the Minister of Innovation, Science and Industry.
“While there has been movement on the wage subsidy, Canadian innovators still need more targeted measures from [the Department of Innovation, Science and Economic Development ] to help Canada’s tech sector weather the current storm and capitalize on the rebound thereafter,” the group said in a tweet.
The Council has become the main body speaking out on behalf of startups in the current crisis.