In an extreme situation of a pandemic or a catastrophe, it’s the Canadian Govt role. Responsibly holding the citizens in such situations is the sole duty of a country. Significantly, it increases the responsibilities by two times or three times. However, the economic circumstances of a country are quite a significant factor.
This is especially in determining how far a country can give support to the citizens. The Govt. of Canada has similarly played its responsible role in combatting issues that have arisen because of the pandemic ‘COVID-19’. SMEs, that are launched recently in the business world need to be stopped from dissolving via loans.
Policies announced by the Prime Minister
Hence, the policies announced by the Prime Minister, Justin shall be very helpful. Companies getting dissolved can also be a probability in an unpredictable situation or chaos. In addition to this, going bankrupt due to the current financial crisis. Hence, the provision of recovery loans by the Govt. is a facility for SME’s that can give them rapid stability.
Bankruptcy is a financial situation where an individual or business is undergoing heavy losses. They are unable to pay salaries to their employees. Furthermore, not in a situation to undergo an extreme financial crisis. Under such circumstances the Govt. declares the business and the business owner as bankrupt.
Hence, the role of the Govt. is to control bankruptcies. The current disturbance has a great tendency for bankruptcies to rise alarmingly. The current pandemic is an example as many small businesses can’t avoid situations of financial disturbances and panic.
The measure allows the countries of the EU membership to apply the reverse charge mechanism for a limited period of time with specific conditions also to be taken under consideration. All of this represents a faster procedure.
RECOVERY THROUGH LOANS- FOR UPTO $40K
A recovery process can take time due to business shutdowns for days. Adding insult to injuries there is a complete lockdown as well due to ‘COVID-19’. The respectable Prime Minister of Canada, Justin Trudeau has announced policies and reforms for SMEs i.e. small and medium-sized businesses. The Canadian Govt role in the announcement of loans from the financial crown courts. Especially to businesses that have been affected by the effects of Coronavirus. Such businesses can apply for loans up to a maximum of $40K variable. Hence, depending on the losses that they have incurred and the outcome of the losses.
Mr. Justin particularly mentioned in his speech with emphasis. He said that the Govt. is particularly aware of the challenges and we are announcing a loan recovery scheme. This shall be 1-year interest-free loans for up to an amount of a maximum of $40K.
The Canadian Govt role & Responsibilities
A substantial step in helping the SMEs in recovering from the crisis situation and making things stable for themselves. A recovery process through loans is a designed process by the Govt. to show the value of the business sector. Businesses, mainly talking about SMEs, while earning money are regular taxpayers.
Furthermore, they hold responsibility for the payrolls of many people. Businesses in Canada are mostly insured with business insurance, which means a business can claim insurance if at risk. They can also claim their money from Insurance companies if they are undergoing constant financial losses due to reasons they are not responsible for.