Page 3 - G20 Newsletter_Vol16

America Asia

United States China
The US Federal Government’s $ On March 25th, the State Council of
2.2 trillion economic aid program China promulgated the “Implementation
“Coronavirus Assistance, Relief, and Economic Security Act Opinions on Strengthening Measures of Stabilizing
(CARES Act)” was launched on April 3rd, including the self- Employment to Cope with the Impact of Covid-19,” which
employed, providing them with $ 600 a week as unemployment proposed to support flexible employment in multiple channels,
subsidy. In addition to the financial support in each state, the including reasonable setting of management mode of the
self-employed who cannot work could receive a subsidy of $ vendors without fixed business premises, and reserving free
800-900 per week and continuously up to four months. market, stall group, and other business outlets; supporting
the flexible-employed individuals to rely on platform, and self-
In addition, the “Paycheck Protection Program (PPP)” employed on platform who purchase the necessary tools for
launched for small businesses and the self-employed, with production and operation, can apply for entrepreneurship
the support of the existing loan network of 1,800 financial guaranteed loans and preferential interest rate; guiding
institutions of the US Small Business Administration, from platform enterprises to make access easier, lower the
April 3rd to June 30th, 2020, provides preferential loans for management service fees, and standardize and normalize
SME owners and the self-employed individuals to cover the communication and coordination mechanisms with the
fixed costs of operations, including eight weeks of employee platform self-employed regarding salaries, working hours,
salaries, rent, interest on mortgage loans and cost of water, and social protection. Restrictions of the rural household
electricity, and gas. This kind of loans are free of repayment.
flexible-employed individuals are abolished in taking part in
Economic Injury Disaster Loan (EIDL), of which 10,000 USD in the pension insurance, and for those who have difficulty in
Emergency Advance can be free of repayment. Similar to the employment, and have not been employed within two years
PPP applicants, EIDL covers most of the SMEs and the self- after graduation from universities, and pay social insurance
employed individuals. Applicants do not need to submit tax premiums since flexible employment, a certain amount of
returns or personal guarantees. They are evaluated based social insurance subsidies will be granted. Many provinces,
on their credit score. The Small Business Administration including Hunan and Shandong, have launched social security
(SBA) will provide an advance payment within three days subsidies for flexible employees. Flexible employees who
after completing the application. The ceiling amount of the are qualified for the requirement can receive up to 1,340
Economic Injury Disaster Loan is 2 million dollars, the interest yuan per month. In the first quarter of 2020 alone, China has
rate is 3.75%, the repayment period is 15-30 years, and more accumulatively spent nearly 10 billion yuan in employment
than 25,000 dollars need to be mortgaged. In addition to the subsidies, and flexible employment is one of the key priorities.
Emergency Advance of 10,000 dollars, other loans need to be On April 10th, the National Development and Reform
repaid. The Emergency Advance of 10,000 dollars can be used Commission issued a new policy of “Cultivating a New
to pay employee wages, employee sick leave wages, rents, Format of the Digital Economy and Encouraging Flexible
mortgages, and costs for production and management.
Employment”, which proposed to support internet companies
Canada and shared platform enterprises to explore various
value-added application development platforms, shared
The Canadian government announced employment platforms, and flexible employment security
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on March 25th that the self-employed
individuals who cannot get normal sick leave wage if they are platforms. All kinds of flexible-employed such as freelance
designers, car drivers, freelance travel guides, takeout riders,
diagnosed with Covid-19, or are required to be quarantined, online matchmakers, online fitness coaches, freelance
can apply for sick leave or quarantine subsidies from the photographers, content creators, etc. can be provided multi-
Canada Emergency Response Benefit (CERB). It requires that
the applicant must be a Canadian citizen over 15 years old and level social security services, for example, vocational training,
have an income of at least $ 5,000 in 2019. The application employment service, and commercial insurance.
can be sent through the online platform, and the qualified Japan
individuals can get a subsidy of $ 2,000 every four weeks for up
to 16 weeks. The Japanese government provides
financial subsidies for the self-employed
Besides, Emergency Care Benefit can provide up to 900 dollars in its 1 trillion-dollar stimulus plan,
in two weeks for at large 15 weeks. The subsidies are mainly which was launched on April 8th, and the self-employed
for employees and the self-employed who need to take care would receive a maximum of 1 million yen (about $ 9,000 ) per
of the diagnosed family members (such as elderly parents); person. In addition, for the self-employed who must stay home
employees and the self-employed who have to take care of the to take care of their children due to school suspension, they
children due to suspension of schools and kindergartens. can also receive a subsidy of 4,100 yen ($ 39) per day.