Federal Announcements & Resources
Thursday, May 21, 2020
Canada Emergency Commercial Rent Assistance (CECRA) OPENING May 25, provides relief for small businesses experiencing financial hardship due to COVID-19. It offers unsecured, forgivable loans to eligible commercial property owners to:
- reduce the rent owed by their impacted small business tenants meet operating expenses on commercial properties
- Property owners must offer a minimum of a 75% rent reduction for the months of April, May and June 2020.
Friday, May 15, 2020
Canada Emergency Wage Subsidy (CEWS) Extended through to August 29, 2020 — To help companies of all sizes, non-profits, and charities. This subsidy will provide employers a 75 percent wage subsidy, back-dated to March 15 and will cover the first $58,700 per employee – up to $847/week per employee. Funds to be received starting May 7th.
The Government of Canada has released resources to ensure businesses and citizens have support during this very fluid situation.
Support from the Government of Canada:
Canada Emergency Response Benefit (CERB) NOW OPEN Provides $2,000 per month for four months to workers who have lost their income for reasons related to COVID-19
Canada Emergency Wage Subsidy (CEWS) NOW OPEN — To help companies of all sizes, non-profits, and charities. Provide employers a 75 percent wage subsidy, back-dated to March 15, through to August 29, 2020. This subsidy will cover the first $58,700 per employee – up to $847/week per employee.
NOTE: You can apply for either CERB or CEWS, not both.
Business Credit Availability Program (BCAP) — Support financing in the private sector with $65 billion in direct lending and other types of financial support. Contact your financial institution to access the various programs.
Canada Emergency Business Account (CEBA) NOW OPEN — Up to $40,000 loan, interest-free for one year through financial institutions but fully backed by the federal government for businesses with a 2019 payroll of 20,000 – 1,500,000. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). Apply through your financial institution.
Canada Emergency Commercial Rent Assistance (CECRA) will help small and medium-sized businesses cover their commercial rents (paying less than $50,000 per month) for April, May, and June which will lower payments by 75 percent.
Tax Flexibility — Businesses can defer paying income tax until September 1, 2020. GST payments, duties, and other remittances can be deferred until June
Employment and Social Development Canada — Details for employers on EI applications for their employees and Work-Share Program
You can find additional information at the following link: https://www.canada.ca/en/department-finance/economic-response-plan.html#business