Following the release of the Economic Statement details by the Minister of Finance, the Honourable Chrystia Freeland, we note much good news for the performing arts sector, for both organizations and artists.
Funding for the Performing Arts Sector
The pandemic has particularly affected the cultural and leisure industries, which employ hundreds of thousands of Canadians. They were among the first to close their doors and will likely be among the last to resume normal operations. The COVID-19 pandemic has led to the near-complete suspension of live events and performances, affecting thousands of artists and freelance and gig workers in the events sector across the country.
To support the planning and presentation of COVID-19-safe events and performances – both live and digital – and to provide work opportunities in these sectors, the federal government will provide $181.5 million in 2021-2022 to the Department of Canadian Heritage and the Canada Council for the Arts to expand their funding programs.
This measure includes a one-year renewal of funding allocated in Budget 2019 for the Building Communities Through Arts and Heritage program, the Canada Arts Presentation Fund, and the Canada Music Fund.
Wage Subsidy
The maximum wage subsidy rate will be increased to 75%.
Access to Liquidity
The Highly Affected Sectors Credit Availability Program (HASCAP) will be implemented to help vulnerable businesses get through the pandemic. The government will work with financial institutions in the short term to create a new program for the most severely affected businesses, including those in sectors such as tourism and hospitality, hotels, arts, and entertainment. This component will offer 100% government-guaranteed financing to hard-hit businesses, as well as low-interest loans of up to $1 million with extended repayment periods of up to 10 years. Rates will be lower than those offered under the Business Credit Availability Program and below typical market rates for hard-hit sectors.
Initially offering maximum loans of $40,000, of which up to $10,000 can be non-repayable, the Canada Emergency Business Account (CEBA) will soon be expanded, allowing eligible businesses to access an additional $20,000 interest-free loan where needed. Half of this additional amount, up to $10,000, would be non-repayable if the loan is repaid by December 31, 2022. The deadline to apply for a CEBA loan has been extended to March 31, 2021.
Please consult the Government of Canada website directly for more details.