The Canadian Government has announced a list of measures to support Canadian businesses during this challenging period.
CANADIAN BUSINESSES
CANADA EMERGENCY WAGE SUBSIDY
Eligible employers will receive a wage subsidy of up to 75%, retroactive to March 15, 2020. This applies to the first $58,700 of salary or $847 a week, per employee. This program has been extended beyond June, in an effort to encourage more employers to re-hire staff.
ELIGIBILITY CRITERIA
- Companies of all sizes, charities, and non-profits.
- Experienced a drop in gross revenue of at least 15% in March and 30% in April and May.
HOW TO APPLY:
- Application Portal is now open. Businesses can apply using My Business Account.
- Eligible businesses can apply for 75% wage subsidy. First payments will be available starting May 7th via direct deposit.
- File a separate application for each payroll program account.
Click here
for more information.
CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE (CECRA)
This program aims to provide forgivable loans to qualifying property owners to cover 50% of rent payments for April-June.
- Loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement. This 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% of the rent.
ELIGIBILITY CRITERIA
- Businesses that pay less than $50,000/month in rent.
- Available to non-profit and charitable organizations.
- Businesses that have temporarily ceased operations OR experienced at least a 70% drop in pre-COVID-19 revenues.
HOW TO APPLY:
The application portal is now open. Click here
to apply.
TEMPORARY WAGE SUBSIDY:
10% of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
ELIGIBILITY CRITERIA
- Companies that don't qualify for the Canada Emergency Wage Subsidy.
HOW TO APPLY:
Reduce payroll remittances to CRA by the amount of the subsidy.
Click here
for more information.
BUSINESS CREDIT AVAILABILITY PROGRAM
Business Development Bank of Canada (BDC) and Export Development Canada (EDC) will provide loans for small and medium-sized businesses of $60-$80 million per company. BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses.
HOW TO APPLY:
Businesses in need of support should contact their financial institution.
CANADA EMERGENCY BUSINESS ACCOUNT
Interest-free loans for up to $40,000 for small businesses and not-for-profit companies.
ELIGIBILITY CRITERIA
- Eligibility for the loan program is open to businesses that spent between $20,000 and $1.5 million in payroll in 2019.
- Applicants with payroll lower than $20,000 require:
- A business operating account at a participating financial institution.
- A Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
HOW TO APPLY:
Contact your financial institution.
BUSINESS TAXES
Payment of income tax can be deferred to August 31, 2020.
GST/HST/CUSTOM DUTIES
Companies, including self-employed individuals, can defer payments to June 30, 2020.
LARGE EMPLOYER EMERGENCY FINANCING FACILITY (LEEFF)
The LEEFF program will be open to large for-profit businesses (excluding financial sector), as well as certain not-for-profit businesses to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies of otherwise viable firms where possible.
Click here to learn more.
Sources:
This report is provided for informational purposes only and should not be construed as specific legal, lending, or tax advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information in this report should consult with his or her investment advisor and tax specialist.The information and any statistical data contained herein were obtained from sources that we believe to be reliable and accurate at the time of publishing. IPC is not liable for any errors or omissions.
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