COVID-19 Relief Measures for Small Businesses
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.
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:
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
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
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
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
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.
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.
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
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
Covid-19 Relief Measures for Mid-Large Businesses
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
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
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
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
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
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
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.
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
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
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