The Canadian Government and Opposition parties passed the $73 billion wage subsidy program on the weekend.
President of Canadian Federation for Independent Business Dan Kelly was on Am1150’s Early Edition.
He said the money will help about one third of businesses.
“Those are businesses that have been trying best they can to hang on to their staff even though their gross revenues have fallen off the map,” said Kelly.
Kellys says for other businesses the money comes too late as they have already laid off staff.
“For another third of the business community it will be too late because they can’t afford another two to six week delay while they continue to pay all of their cost for wages,” said Kelly
On AM1150's Early Edition Kelly said the federal funds could cool down waves of additional unemployment for businesses whose doors remain open.
“Business owners will say ‘look I got government now picking up 75 percent of my way bill, i’ve got some reserves, I can perhaps borrow a little bit of money here or there and maybe I’ll make it through if this emergency phase ends in a few weeks time.’ But gosh we don’t even know when that’s going to be,” said Kelly.
Kelly added that 80 percent of businesses across Canada are fully or partially closed.