Weekly Market Summary
Week ended: Friday 11th September 2020
Prime Minister Trudeau announces $221M loan program for Black entrepreneurs
Black Canadians who want to start or expand a business will have access to loans and supports for training and mentorship under a new federal program unveiled by Prime Minister Justin Trudeau in Toronto Wednesday. The $221-million program jointly funded by the federal government and eight financial institutions, is the first of its kind to help Black businesses on a national scale. It responds to one of the requests made in June by an open letter from the Parliamentary Black Caucus that was signed by more than 100 MPs and senators.
Trudeau said the COVID-19 pandemic has put a spotlight on the systemic gaps and economic barriers Black Canadians face every day, and that his government wants a pandemic recovery that is “inclusive and equitable for all Canadians.” “An investment in Black excellence is an investment in economic empowerment and economic empowerment is an essential part of justice,” he said. “It’s justice against a system that has locked out far too many Black entrepreneurs and denied them the same opportunities as other Canadians.” Ottawa is putting up $93 million over the next four years for the Black Entrepreneurship Program, while banks are contributing up to $128 million for loans between $25,000 and $250,000 for Black business owners.
Summary effect on SMEs: The windfall funding for black entrepreneurs is welcome news for black-owned SMEs that might have been cash strapped. These businesses now have access to much needed funding to shore up their operations.
Canada to extend rent-relief program into September
Canadian Prime Minister Justin Trudeau will extend a loan program for commercial landlords into September as small businesses struggle to reopen amid the COVID-19 pandemic, the Globe & Mail reported. The Canada Emergency Commercial Rent Assistance Program will be extended for a third time as the government works through options for reforming its rent-relief strategy, the paper said, citing people familiar with policy discussions. The extension of the existing program is meant to be an interim measure.
A spokesperson for Finance Minister Chrystia Freeland declined to confirm the details with the Globe on Saturday. Ontario Premier Doug Ford’s spokesperson Ivana Yelich told the Globe that the province was working with the federal government to move such an extension forward. In April, Trudeau broadened his fiscal rescue plan to include commercial landlords and lend more to small businesses. The relief program provided loans for landlords who lowered or waived rent payments from their business tenants. The program was originally meant to end in June.
Summary effect on SMEs: The extension of the rent-relief program will help ease financial burdens on SMEs that are renting spaces.