UPDATE 10 a.m.

What happened: Federal government unveils new supports for small businesses, including significant boost to wage subsidy

Why it matters: The government says measures will be more effective at keeping workers on the payroll

Ottawa’s previously announced wage subsidy for small businesses is getting a massive boost from 10% to 75%.

Prime Minister Justin Trudeau acknowledged Friday (March 27) the government needed to do “much more” to help small businesses keep workers on the payroll.

“We’re helping companies keep people on the payroll so workers are supported and the economy is positioned to recover from this,” he said during his daily briefing outside his home in Ottawa.

Critics had taken aim at the previous 10% subsidy, noting it paled in comparison to parallel subsidies in European nations, and would not be nearly enough to support workers and small businesses as the economy grinds to a halt amid the pandemic.

Changes to the subsidy will be backdated to March 15.

Trudeau also announced a Canada Emergency Business Account, allowing banks to offer $40,000 loans guaranteed by government to eligible businesses that will come interest-free for the first year.

Under certain conditions, $10,000 of the loan will be forgivable.

Export Development Canada and the Business Development Bank of Canada will be receiving $12.5 billion in additional funding to help SMBs with cashflow, the prime minister said.

Trudeau also revealed government would defer GST and HST payments as well as duties and taxes owed on imports until June.

“This is the equivalent of giving $30 billion in interest-free loans to businesses,” he said.

More details, such as the number of businesses and workers that could benefit from the new measures, will be forthcoming “hopefully” by Monday, Trudeau said.

The announcements from the prime minister come hours after the Bank of Canada unexpectedly cut its overnight rate to 0.25% — the lowest level in a decade.

Tyler Orton, Business in Vancouver

UPDATE 8:53 a.m.

Trudeau says the government needs to hammer out the details around how supports for small businesses will be implemented, which he hopes to provide by Monday.

Trudeau says these are exceptional times and that the government needs to step up and support Canadians at a time when the economy is nearly at a halt.

Asked about paying for the measures, the prime minister says the government's economic foundations were strong before the pandemic and he expressed confidence the economy will bounce back after COVID passes.

-with files from the Canadian Press

UPDATE 8:25 a.m.

Prime Minister Trudeau announces modifications to previously announce financial measures, including suspension of the GST and HST and upping the amount of money offered to Canadian small- and medium-sized businesses impacted by job losses to 75 per cent, backdated to March 15, 2020.

The federal government is launching a special account for small businesses, offering interest-free loans and billions more in assistance on cash-flow.

Trudeau says helping Canadians will also help the Canadian economy and put Canada in a better position to recover once the COVID-19 pandemic ends.

ORIGINAL 7:53 a.m.

Prime Minister Justin Trudeau is expected to address the nation this morning at 8:15 a.m. Pacific time in what has become a daily occurrence from Ottawa.

Canada has been gradually raising its isolation requests since the COVID-19 outbreak began in China's Hubei province in January, starting with arrivals from Hubei in early February, extending it to Iran and Italy in early March, and then to every arrival on March 15. Until now it was a request. Now it is an order.

Photo: CTV News