Support for Businesses:
For the most up to date information please see the Economic Response Plan website or this page with Resources for Canadian Businesses.
The Government of Canada is providing support to businesses so that they can comply with public health guidelines about closing public spaces and not need to lay off employees during this extraordinary time.
Announced May 19, 2020
Support for small Businesses during COVID-19
- The government of Canada has now extended the eligibility criteria for the Canada Emergency Business Account to include many owner-operated small business.
Large Employers Emergency Financial Facility (LEEFF)
- On May 11, 2020, the Prime Minister announced the establishment of (LEEFFF) to provide bridge financing to Canada's largest employers, whose needs during the pandemic are not being met through conventional financing. The objective of this support is to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies. The program will require strict limits to dividends, share buy-backs, and executive pay.
Canada Emergency Wage Subsidy
The Canada Emergency Wage Subsidy
would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020. Extended until late summer to ease the impact of Covid19.
* Eligible employers who suffer a drop in gross revenues of at least 15 percent in March, or 30 percent in April or May, when compared to the same month in 2019, would be able to access the subsidy.
* Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
* For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the revenue test is appropriate to their circumstances.
* An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
* Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through the Canada Revenue Agency My Business Account portal.
* Applications will be accepted on Monday April 27th, and payments can be retroactive to March 15th 2020.
On April 24 2020 the Government announced that the federal government has reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.
- The program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
- The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.
- Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
NEW SUPPORT FOR BUSINESSES ANNOUNCED APRIL 16th 2020:
On April 16th the Government of Canada announced its intent to introduce the Canada Emergency Commercial Rent Assistance
(CECRA) for small businesses. The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June.
to protect Canadian jobs and provide more support to businesses and organizations dealing with the economic impacts of COVID-19, the Government of Canada will provide over $1.7 billion for targeted measures
· $675 million to give financing support to small and medium-sized businesses that are unable to access the government’s existing COVID-19 support measures, through Canada’s Regional Development Agencies.
· $287 million to support rural businesses and communities, including by providing them with much-needed access to capital through the Community Futures Network.
· $500 million to establish a COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations to help address the financial needs of affected organizations within these sectors so they can continue to support artists and athletes. This measure is consistent with the government’s other existing COVID-19 support measures for wages and fixed costs for organizations.
· $250 million to assist innovative, early-stage companies that are unable to access existing COVID-19 business support, through the National Research Council of Canada’s Industrial Research Assistance Program.
· $20.1 million in support for Futurpreneur Canada to continue to support young entrepreneurs across Canada who are facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.
NEW SUPPORT FOR BUSINESSES ANNOUNCED MARCH 27th 2020:
The Prime Minister, Justin Trudeau, today announced additional new measures to support small businesses dealing with the economic impacts of the pandemic. These measures will help Canadian businesses protect the jobs that Canadians depend on, and pay their workers and bills during these difficult times.
· Announce a 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll.
· Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.
· Launch the new Canada Emergency Business Account
. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero per cent interest rate, so they can pay for rent and other important costs over the next number of months.
· Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.
Previously announced support to business
You can find more information in this Backgrounder.
Under the Canada Emergency Response Benefit, you do NOT need to lay off your employees. If you send them home without pay, they are eligible for the benefit of $2000 a month.
We are establishing a Business Credit Availability Program through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Under this program, BDC and EDC will cooperate with private sector lenders to coordinate financing and credit insurance solutions for Canadian businesses. This will allow BDC and EDC to provide more than $10 billion of additional support to businesses. There is also support for businesses in Ottawa through FedNor Ontario.
Should a business need to reduce hours or numbers of employees, they can access the EI Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers. We have extended the eligibility of such agreements to 76 weeks, eased eligibility requirements, and streamlined the application process.
The Canada Revenue Agency is also deferring all personal and business tax payments to the end of August 2020.
The Government is also providing small employers a temporary wage subsidy up to $1,375 per employee for a period of three months. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
Canada's Plan to Mobilize Industry
The Government of Canada announced $250 million for farmers and food-related businesses, including $125 million for cattle, hog, and livestock farmers; $77.5 million for food processing; $50 million to redistribute surplus food to local food organizations that serve vulnerable Canadians; and other programs to avoid food waste and ensure food availability to all Canadians.
The Government of Canada is investing $2 billion under Canada’s Plan to Mobilize Industry to fight COVID-19 to support diagnostic testing and to purchase ventilators and protective personal equipment, including for bulk purchases with provinces and territories. Personal protective equipment includes things like more masks and face shields, gowns, and hand sanitizer.
If you are a Canadian manufacturer or supplier who can provide products and services to help Canada combat COVID-19, or you can retool your manufacturing line or scale up production of critical health and safety supplies and equipment, including personal protective equipment, sanitization products, diagnostic and testing products, and disease tracking technology, please fill out this online form. We want to hear from you.