COVID-19 Relief Measures for Small Businesses

ACOA Regional Relief and Recovery Fund in Atlantic Canada (RRRF)

Who it’s for:

Small and medium-sized businesses that provide products and services to other businesses; and organizations that provide support services to businesses.

Main Street businesses in both urban and rural communities.

Businesses and organizations that have either:

Applied for other federal relief measures and have not been able to secure funds; or Accessed COVID19 relief measures and continue to experience hardship.

Businesses in sectors that are critical to the resilience and survival of Atlantic Canada’s economy, such as advanced manufacturing, ocean industries, clean growth technology, and tourism, may be given priority.

How to Apply: Interested companies may apply here: https://www.canada.ca/en/atlantic-canada-opportunities/services/application-for-financial-assistance.html

Automatic six-month payment deferral until October 1, 2020.

Benefit: These new funds are complementary to existing programs.

More Info: For more information: https://www.canada.ca/en/atlanticcanadaopportunities/campaigns/covid19/rrrf.html 

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Canada Emergency Business Account (CEBA)

Who it’s for: Small businesses and not-for-profits who need access to the capital to help cover operating costs. As of June 26, 2020, businesses eligible for CEBA now include owneroperated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as familyowned corporations remunerating in the form of dividends rather than payroll. Applicants will have to demonstrate having eligible nondeferrable expenses between Cdn.$40,000 and Cdn.$1,500,000 in 2020.

As of October 26, 2020, eligible Canadian businesses that currently operating through a personal bank account will be able to apply for CEBA.

CEBA loans for eligible businesses will increase from $40,000 to $60,000.

How to Apply: Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.

Criteria include:

The CEBA application process follows one of two streams: (i) the Payroll Stream (Applicants with employment income paid in the 2019 calendar year between Cdn.$20,000 and Cdn.$1,500,000) or (ii) the Non-Deferrable Expense Stream (Applicants with Cdn.$20,000 or less in total employment income paid in the 2019 calendar year).

Every applicant must meet the following criteria:

Has an active CRA Business Number (BN) with an effective date of registration on or prior to March 1, 2020.

Has an active business chequing/operating account with the Lender at the time of applying for CEBA.

Has not previously used the Canada Emergency Business Account Program and will not apply for support under the Program at any other financial institution.

Intends to continue to operate its business or to resume operations.

For the Non-Deferrable Expenses Stream, the following criteria must also be met:

Have eligible non-deferrable expenses between Cdn. $40,000 and Cdn. $1,500,000. Expenses will be subject to verification and audit by the Government of Canada.

Filed an income tax return with the CRA with a tax year ending in 2019 or, if its tax return for 2019 has not yet been submitted, 2018.

Benefit: Interest-free loans of up to $40,000 guaranteed by the Government of Canada. Repayment of the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000). The funds from this loan are to be used by the Borrower to pay nondeferrable operating expenses of the Borrower.

On December 4, the Government of Canada expanded the program to enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic – to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000.

Half of this additional financing would be forgivable if repaid by December 31, 2022.

All applicants now have until March 31, 2021, to apply for CEBA.

More Info: For more information: https://ceba-cuec.ca/

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Canada Emergency Rent Subsidy (CERS)

Who it’s for: Rent and mortgage support directly to qualifying organizations.

How to Apply: Eligible employers are able to apply for the CEWS through a Canada Revenue Agency online portal.

Benefit: A subsidy of up to 65% of eligible expenses.

Qualifying organizations that have been significantly restricted by a mandatory public health order issued by a qualifying public health authority can receive an additional 25% of rent support through the Lockdown Support.

The combined effect of the rent subsidy and the Lockdown Support is that hard-hit businesses, non-profits and charities subject to a lockdown can receive rent support of up to 90%.

The rent subsidy and the Lockdown Support are available until June 2021.

More Info: https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses

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Canada Emergency Wage Subsidy

Who It’s For: Eligible employers include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non-profit organizations and registered charities. Public bodies would not be eligible for this subsidy. Public bodies include municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.

For the periods covering March 2020 through June 2020 (i.e., Periods 1 – 4), the CEWS is available to eligible employers who have faced a 15% decline in qualifying revenues earned from carrying on business in Canada in the first claim period (March 15 to April 11, 2020), or a 30% or more decline in subsequent three claim periods (see summary table below).

For July 2020 onward (Periods 5 and beyond), the CEWS is available to any eligible employer who experiences a decline in revenue, with the amount of the subsidy varying depending on the extent of the decline in the current period and the average decline over the prior three months.

How to Apply: Eligible employers are able to apply for the CEWS through a Canada Revenue Agency online portal. Note: program extended to December 19, 2020, with the final ‘period’ now October 25 – November 21, 2020. The new rules will apply beginning in September 2020.

Note: Program extended to June 2021

Benefit: The subsidy amounts for a given employee on eligible  remuneration paid vary depending on the time period being applied for, the amount of revenue drop  and other factors.

For more information, the CRA CEWS FAQ page features in-depth technical information on the most commonly anticipated technical questions from businesses and tax professionals.  Please see:

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html

More Info: For more information on the CEWS and online application see: https://www.canada.ca/en/revenueagency/services/subsidy/emergency -wage-subsidy.html

The CRA has updated their CEWS FAQ page to reflect a number of changes that were recently announced. For more information, please see: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html

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Canada Recovery Hiring Program

Who It’s For: The proposed Canada Recovery Hiring Program would provide eligible employers with a subsidy of up to 50 per cent of incremental remuneration paid to eligible active employees between June 6, 2021, and November 20, 2021. This program is to help hard hit businesses hire the workers they need to recover and grow as local economies reopen.

Benefit: It would be available to eligible employers who have experienced qualifying revenue declines, so they can hire more workers, increase workers’ hours, or increase wages.

More Info: For more information and to see if you are eligible please visit: Helping Hard-hit Businesses Hire More Workers with the Canada Recovery Hiring Program – Canada.ca

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Canada Recovery/ Recovery Sickness/ Recovery Caregiver Benefits:

Who it’s for: These benefits give income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits.

How to Apply:Eligible applicants can apply online or by phone. To apply online, you will need to register a CRA My Account. To apply by phone, you can call the automated toll-free line at;    1-800-959-2019 or 1-800-959-2041

Benefit:

  • If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period.
  • If you are eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for a 1-week period.
  • If you are eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each 1-week period.

More Info:

For more information you can visit Canada Recovery Benefit (CRB) – Canada.ca

For more information you can visit Canada Recovery Sickness Benefit (CRSB) – Canada.ca

For more information you can visit Canada Recovery Caregiving Benefit (CRCB) – Canada.ca

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Co-Lending Program for Small & Medium-Sized Enterprises

Who it’s for: For Small and Medium-Sized Enterprises (SME’s) businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

How to Apply:

Available to SMEs through their financial institutions. Other eligibility criteria include:

The financing will be used solely to support operational cashflow requirements

Subject to your primary financial institution’s credit criteria

This support is available until June 2021.

Benefit:

Commercial loans between $1 million and $12.5 million for cashflow needs, including regularly scheduled principal and interest payments on existing debt in partnership with BDC.

Loans are interest-only for the first 12 months, with a 10-year repayment period.

Postponement of principal payments for up to 12 months is also available.

Can be combined with other products from the Business Credit Availability Programs (BCAP), such as EDC’s guarantee program for mid‐market companies

More Info: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html

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Community Investment Fund (CIF)

Who it’s for: For the 2020-21 fiscal year only, a new category has also been added to support non-profits being impacted by COVID-19.

How to Apply:

The CIF will provide support to local governments and non-profit community based organizations for initiatives such as festivals, national events, volunteer recognition events and community growth initiatives.

Funding will be provided for eligible costs of projects that, without such support, would otherwise not proceed. The applicant must demonstrate that their project is directly linked to one of the Program’s objectives and the project must not receive any other funding from the Province (except SEED funding for students).

Benefit:

Funding will help cover:

• Certain general administrative / operational costs (phone, power, insurance…);
• Equipment, or supplies necessary to comply with public health recommendations or best practices;
• Projects related to addressing impacts resulting from COVID-19.

More Info: Community Investment Fund (CIF) (gnb.ca)

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Credit and Liquidity Support to the Agricultural and Agri-Food Sector

Who it’s for: Provides credit to producers, agribusinesses and food processors.

How to Apply: Available through Farm Credit Canada

Benefit: Providing $5 billion in additional lending capacity through Farm Credit Canada to assist farmers with cashflow issues and processors affected by lost sales. In addition, FCC has put in place: a deferral of principal and interest payments up to six months for existing loans; or a deferral of principal payments up to 12 months access to an additional credit line up to $500,000, secured by general security agreements.

More Info: For more information: https://www.fcc-fac.ca/en/covid-19/program-details.html

Applications can be made through the local Farm Credit Canada office or the customer service centre at 1- 888-332-3301.

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Highly Affected Sectors Credit Availability Program (HASCAP)

Who It’s For: For businesses heavily impacted by Covid-19. This stream offers 100% federal government-guaranteed financing for heavily impacted businesses and provide low-interest loans of up to $1 million over extended terms, up to ten years.

How to Apply: Applications for the HASCAP Loan need to be administered through your primary financial institution. Businesses can start applying as early as February 1 at principal financial institutions (i.e. the big banks of BMO, RBC, CIBC, Scotiabank, TD Bank, and National Bank) and more widely by February 15 (i.e. smaller institutions).

Benefit: Canadian businesses heavily impacted by COVID-19 and the global pandemic can access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs. The funds are guaranteed by the Canadian government through the BDC.

More Info: Interested businesses are instructed to contact their primary lender to get more information and to apply.

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NB Small Business Emergency Working Capital Program

Who It’s For: New Brunswick employers.

How to Apply: GNB has made funds available to CBDC to provide Working Capital loans to help provide relief for the impacts our communities are encountering as a result of the Covid19 pandemic. Business owners can apply for working capital loans directly through their CBDC. Examples of eligible businesses include restaurants, seasonal tourism operators, service sectors, and selfemployed business owners impacted directly by the pandemic.

Benefit: Working capital loans will be up to $100,000. Companies considering a request should first (1) speak to their Financial Institution regarding options, (2) research and apply to any federal programs available, and (3) assess their Working Capital needs by putting together their cash flow projections together for the next six months.

More Info: More information and application can be found here: https://www.cbdc.ca/en/gnb-small-business-emergency-working-capital-program

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Small and Medium-Sized Enterprise Loan Guarantee Program

Who it’s for: For Small and Medium-Sized Enterprises (SME’s) businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

How to Apply: Available to SMEs through their financial institutions to help weather the impacts of COVID-19. This program is now available at various banks and credit unions until June 2021.

Benefit: Export Development Canada (EDC) to provide guarantees to financial institutions so that they can issue new operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.

More Info: This new loan program will provide up to a total of $20 billion for export sector and domestic companies. For more information: https://www.canada.ca/en/departm ent-finance/programs/financialsector-policy/business-creditavailability-program.html 

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Young Entrepreneurs

Who it’s for: Futurpreneur Canada clients.

How to Apply: To allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.

Benefit: $20.1 million in total support.

More Info: For more information, see: https://www.canada.ca/en/department-finance/economicresponse-plan.html

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Ulnooweg Emergency Loan Program

Who it’s for: Indigenous business owners affected by COVID-19

How to Apply: Ulnooweg began accepting applications starting June 15.

Benefit: Maximum assistance of $40,000 is available, with 25% of the total loan amount being non-repayable. The repayable portion of 75% is interest free. The loan term is up to 48 months, and no payments are required for the first 12 months.

More Info: For more information: http://www.ulnooweg.ca/wpcontent/uploads/2020/06/Ulnooweg_EmergencyLoan_Promo2June1.pdf

Or call 1-888-766-2376

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Covid-19 Relief Measures for Mid-Large Businesses

ACOA Regional Relief and Recovery Fund in Atlantic Canada (RRRF)

Who it’s for:

Small and medium-sized businesses that provide products and services to other businesses; and organizations that provide support services to businesses.

Main Street businesses in both urban and rural communities.

Businesses and organizations that have either:

Applied for other federal relief measures and have not been able to secure funds; or Accessed COVID19 relief measures and continue to experience hardship.

Businesses in sectors that are critical to the resilience and survival of Atlantic Canada’s economy, such as advanced manufacturing, ocean industries, clean growth technology, and tourism, may be given priority.

How to Apply: Interested companies may apply here: https://www.canada.ca/en/atlantic-canada-opportunities/services/application-for-financial-assistance.html

Automatic six-month payment deferral until October 1, 2020.

Benefit: These new funds are complementary to existing programs.

More Info: For more information: https://www.canada.ca/en/atlanticcanadaopportunities/campaigns/covid19/rrrf.html 

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BDC's Mid-Market Financing Program

Who it’s for: For  medium-sized businesses with annual revenues in excess of about $100 million to $500 million whose credit needs exceed what is already available through the Business Credit Availability Program and other measures.

How to Apply: Available until June 2021.

These loans are provided jointly by BDC and a businesses’ primary financial institution.

Benefit: Commercial loans ranging between $12.5 million and $60 million

Four year terms, after which principal is to be repaid as a balloon payment. Interest payments for the first 12 months will be capitalized and due at maturity.

More Info: https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses

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Canada Emergency Rent Subsidy (CERS)

Who it’s for: Rent and mortgage support directly to qualifying organizations.

How to Apply: Eligible employers are able to apply for the CEWS through a Canada Revenue Agency online portal.

Benefit: A subsidy of up to 65% of eligible expenses.

Qualifying organizations that have been significantly restricted by a mandatory public health order issued by a qualifying public health authority can receive an additional 25% of rent support through the Lockdown Support.

The combined effect of the rent subsidy and the Lockdown Support is that hard-hit businesses, non-profits and charities subject to a lockdown can receive rent support of up to 90%.

The rent subsidy and the Lockdown Support are available until June 2021.

More Info: https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses

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Canada Recovery Hiring Program

Who It’s For: The proposed Canada Recovery Hiring Program would provide eligible employers with a subsidy of up to 50 per cent of incremental remuneration paid to eligible active employees between June 6, 2021, and November 20, 2021. This program is to help hard hit businesses hire the workers they need to recover and grow as local economies reopen.

Benefit: It would be available to eligible employers who have experienced qualifying revenue declines, so they can hire more workers, increase workers’ hours, or increase wages.

More Info: For more information and to see if you are eligible please visit: Helping Hard-hit Businesses Hire More Workers with the Canada Recovery Hiring Program – Canada.ca

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Canada Recovery/ Recovery Sickness/ Recovery Caregiver Benefits:

Who it’s for: These benefits give income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits.

How to Apply:Eligible applicants can apply online or by phone. To apply online, you will need to register a CRA My Account. To apply by phone, you can call the automated toll-free line at;    1-800-959-2019 or 1-800-959-2041

Benefit:

  • If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period.
  • If you are eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for a 1-week period.
  • If you are eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each 1-week period.

More Info:

For more information you can visit Canada Recovery Benefit (CRB) – Canada.ca

For more information you can visit Canada Recovery Sickness Benefit (CRSB) – Canada.ca

For more information you can visit Canada Recovery Caregiving Benefit (CRCB) – Canada.ca

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Canada Recovery Caregiving Benefit (CRCB)

Who it’s for: Employed and self-employed individuals who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care.

How to Apply: Apply on the first Monday after the 1-week period being applied for has ended. Applications do not renew automatically

The easiest way to apply will be online through CRA My Account.

May also apply by phone by calling:  1-800-959-2019 or 1-800-959-2041

Benefit: May provide $500 ($450 after taxes withheld) for each 1-week period.

If the situation continues past 1 week, another application will  need to be submitted. Available for up to a total of 26 weeks between September 27, 2020 and September 25, 2021.

More Info: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-caregiving-benefit.html

Or call 1-800-959-2019 or 1-800-959-2041

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Co-Lending Program for Small and Medium Enterprises

Who it’s for: For Small and Medium-Sized Enterprises (SME’s) businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

How to Apply:

Available to SMEs through their financial institutions. Other eligibility criteria include:

The financing will be used solely to support operational cashflow requirements

Subject to your primary financial institution’s credit criteria

This support is available until June 2021.

Benefit:

Commercial loans between $1 million and $12.5 million for cashflow needs, including regularly scheduled principal and interest payments on existing debt in partnership with BDC.

Loans are interest-only for the first 12 months, with a 10-year repayment period.

Postponement of principal payments for up to 12 months is also available.

Can be combined with other products from the Business Credit Availability Programs (BCAP), such as EDC’s guarantee program for mid‐market companies

More Info: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html

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Credit and Liquidity Support to the Agricultural and Agri-Food Sector

Who it’s for: Provides credit to producers, agribusinesses and food processors.

How to Apply: Available through Farm Credit Canada

Benefit: Providing $5 billion in additional lending capacity through Farm Credit Canada to assist farmers with cashflow issues and processors affected by lost sales. In addition, FCC has put in place: a deferral of principal and interest payments up to six months for existing loans; or a deferral of principal payments up to 12 months access to an additional credit line up to $500,000, secured by general security agreements.

More Info: For more information: https://www.fcc-fac.ca/en/covid-19/program-details.html

Applications can be made through the local Farm Credit Canada office or the customer service centre at 1- 888-332-3301.

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EDC's Mid-Market Guarantee and Financing Program

Who it’s for: For companies who tend to have revenues of between $50 million to $300 million, to sustain operations during this uncertain period

How to Apply: More details will be available soon.

Benefit: EDC will continue to work with Canadian financial institutions to guarantee 75 per cent of new operating credit and cash-flow loans – ranging in size from $16.75 million to a maximum of $80 million. These expanded guarantees are available to exporters, international investors and businesses that sell their products or services within Canada.

More Info: For more information see: https://www.canada.ca/en/department-finance/economic-responseplan.html#businesses

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ONB Working Capital Loans

Who It’s For: New Brunswick employers.

How to Apply: Working capital loans will help employers respond to challenges associated with COVID-19. Examples of sectors that would benefit from this support are manufacturing and processing industries, information technology and related sectors, business-tobusiness service sectors engaged in export, or import replacement activities, and cultural enterprises. Employers will be able to apply for this assistance directly from Opportunities New Brunswick.

Benefit: ONB will provide – upon request – working capital in excess of $100,000 to help manage the impacts of COVID-19 on their operations. Companies considering a request should first (1) speak to their Financial Institution regarding options, (2) research and apply to any federal programs available, and (3) assess their Working Capital needs by putting together their cash flow projections together for the next six months.

More Info: Existing ONB clients should contact their Business Development Executive or email: nav@navnb.ca or, call the Business Navigator line at 1- 833-799-7966. For more information, see: https://onbcanada.ca/covid19- working-capital-loans-newbrunswick/

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Small and Medium-Sized Enterprise Loan Guarantee Program

Who it’s for: For Small and Medium-Sized Enterprises (SME’s) businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply.

How to Apply: Available to SMEs through their financial institutions to help weather the impacts of COVID-19. This program is now available at various banks and credit unions until June 2021.

Benefit: Export Development Canada (EDC) to provide guarantees to financial institutions so that they can issue new operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.

More Info: This new loan program will provide up to a total of $20 billion for export sector and domestic companies. For more information: https://www.canada.ca/en/departm ent-finance/programs/financialsector-policy/business-creditavailability-program.html 

See More See Less

Young Entrepreneurs

Who it’s for: Futurpreneur Canada clients.

How to Apply: To allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.

Benefit: $20.1 million in total support.

More Info: For more information, see: https://www.canada.ca/en/department-finance/economicresponse-plan.html

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