COVID-19 SMALL BUSINESS RELATED QUESTIONS
Business Credit Availability Program
Extending the federal work- sharing program
Extending the federal work- sharing program
Extending the federal work- sharing program
Extending the federal work- sharing program
Extending the federal work- sharing program
Canada Emergency Wage Subsidy
Extending the federal work- sharing program
Canada Emergency Business Account
Canada Emergency Business Account
Establishing a Business Credit Availability Program
Canada Emergency Business Account
Establishing a Business Credit Availability Program
Establishing a Business Credit Availability Program
Establishing a Business Credit Availability Program
More time to pay income taxes
Establishing a Business Credit Availability Program
Establishing a Business Credit Availability Program
Canada Emergency Commercial Rent Assistance (CECRA)
Canada Emergency Commercial Rent Assistance (CECRA)
Canada Emergency Commercial Rent Assistance (CECRA)
Alberta Government & City of Calgary Support
Canada Emergency Commercial Rent Assistance (CECRA)
Canada Emergency Commercial Rent Assistance (CECRA)
Large Employer Emergency Financing Facility (LEEFF)
Canada Emergency Commercial Rent Assistance (CECRA)
Large Employer Emergency Financing Facility (LEEFF)
Regional Relief and Recovery Fund
Additional Business Related Questions & Resources
Large Employer Emergency Financing Facility (LEEFF)
Additional Business Related Questions & Resources
Additional Business Related Questions & Resources
Additional Business Related Questions & Resources
Business Credit Availability Program
- The federal government has established a Business Credit Availability Program (BCAP) to provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
- BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.
- This program includes:
- Loan Guarantee for Small and Medium-Sized Enterprises
Through the Business Credit Availability Program, Export Development Canada (EDC) is working with financial institutions to guarantee 80% of new operating credit and cash flow term loans of up to $6.25 million to small and medium-sized enterprises (SMEs).
This financing support is to be used for operational expenses and is available to both exporting and non-exporting companies.
Contact your financial institution for more information. - Co-Lending Program for Small and Medium-Sized Enterprises
- Through the Business Credit Availability Program, Business Development Canada (BDC) is working with financial institutions to co-lend term loans of up to $6.25 million to SMEs for their operational cash flow requirements.
- The program offers differing maximum finance amounts based on business revenues.
- This support is available until or before September 30, 2020.
- This program is now available at various banks and credit unions.
- Loan Guarantee for Small and Medium-Sized Enterprises
These programs are now available at various financial institutions and credit unions.
- If you have specific questions about applying for funding, BDC can be reached at the toll-free number: 1-877-232-2269 Monday to Friday, from 7:30 a.m. to 8:00 p.m. (Eastern Time) and Saturday and Sunday from 9:00 a.m. to 5:00 p.m. (Eastern Time). They also have an online assessment tool.
- https://www.canada.ca/en/department-finance/economic-response-plan.html#business_credit_availability_program
Expanding the BCAP
- The Government has announced that they will expand the Business Credit Availability Program (BCAP) to mid-sized companies with larger financing needs. Support for mid-market businesses will include loans of up to $60 million per company, and guarantees of up to $80 million.
- Continue to provide financing to businesses through Farm Credit Canada, the BDC, and EDC, including through the Canada Account.
- https://pm.gc.ca/en/news/news-releases/2020/05/11/prime-minister-announces-additional-support-businesses-help-save
BDC’s Mid-Market Financing Program
- BDC’s Mid-Market Financing Program will provide commercial loans ranging between $12.5 million and $60 million to medium-sized businesses whose credit needs exceed what is already available through the Business Credit Availability Program and other measures.
BDC anticipates that qualifying companies will have annual revenues in excess of approximately $100 million. - More details will be made available soon.
EDC’s Mid-Market Guarantee and Financing Program
- EDC’s Mid-Market Guarantee and Financing Program will bring liquidity to companies who tend to have revenues of between $50 million to $300 million, to sustain operations during this uncertain period. 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 details will be made available soon.
Extending the federal work- sharing program
- https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#extending_workshareprograms
- Extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.
- To apply and more info visit: https://www.canada.ca/en/employment-social-development/services/work-sharing/apply.html
Canada Emergency Wage Subsidy
- The federal government is covering 75% of an employee's wages – up to $847 per week - for eligible employers. The CEWS will allow you to re-hire your employees and avoid layoffs during the crisis.
- The program will be in place until August 29.
- Apply here: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
- More information: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-how-apply.html
- Eligible Employers:
- Determine your eligible employees
- Calculate your subsidy amount
- Contact the CRA
- More information, including eligibility, application instructions, and more found here: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
Canada Emergency Business Account
- https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses
- The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
- Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
- To qualify under the expanded eligibility criteria:
- CEBA applicants with payroll lower than $20 000 will need:
- A business operating account at a participating financial institution;
- A CRA business number;
- a 2018 or 2019 tax return; and
- Eligible non-deferrable expenses of between $40 000. and $1.5 million
- Learn more here: https://ceba-cuec.ca/
More time to pay income taxes
- https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#more_time_to_pay_their_income_taxes
- Allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act.
- No interest or penalties will accumulate on these amounts during this period.
- More info here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update.html
Canada Emergency Commercial Rent Assistance (CECRA)
- Canada Emergency Commercial Rent Assistance (CECRA) provides relief for small businesses experiencing financial hardship due to COVID-19.
- Over the course of the program, property owners will reduce rent by at least 75 % for the months of April and May (retroactive), and June, for their small business tenants. CECRA will cover 50 % of the rent, with the tenant paying up to 25 % and the property owner forgiving at least 25 %.
- Apply here: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
Alberta Government & City of Calgary Support
Support for businesses from the Alberta government
Support for businesses from the City of Calgary
Small Businesses: How are small businesses impacted by the Alberta Relaunch Plan?
- https://www.alberta.ca/alberta-relaunch-strategy.aspx
- https://www.alberta.ca/biz-connect.aspx
- Alberta’s Relaunch Strategy puts safety first while gradually reopening businesses, resuming activities and getting people back to work
Small Businesses: How are small businesses impacted by the Alberta Relaunch Plan?
- https://www.alberta.ca/alberta-relaunch-strategy.aspx
- https://www.alberta.ca/biz-connect.aspx
- Alberta’s Relaunch Strategy puts safety first while gradually reopening businesses, resuming activities and getting people back to work
Large Employer Emergency Financing Facility (LEEFF)
- The Large Employer Emergency Financing Facility (LEEFF) provides bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.
- The additional liquidity provided through LEEFF allows Canada’s largest businesses, their workers and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery.
- This program is delivered by the Canada Development Investment Corporation, in cooperation with Innovation, Science and Economic Development Canada and the Department of Finance.
- Apply here: https://www.cdev.gc.ca/home-ceefc/
Regional Relief and Recovery Fund
Regional Relief and Recovery Fund
- The Fund aims to help western Canadian businesses cope with the financial hardship resulting from COVID-19.
Go to the eligibility criteria for:
or use the quick RRRF Eligibility Assistant here: https://www.wd-deo.gc.ca/eng/20059.asp
Additional Business Related Questions & Resources
Launch of Insure Mortgage Purchase Program
- https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#insure_mortgage_purchase_program
- Launched an Insured Mortgage Purchase Program, in which we will purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.
- This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.
- More information here: https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#insure_mortgage_purchase_program
Additional information for Alberta employees and employers
- https://www.alberta.ca/coronavirus-info-for-albertans.aspx#p22780s6
- https://www.canada.ca/en/department-finance/economic-response-plan.html?fbclid=IwAR3myj9ITUoRjdpAGSCHvawxOdPeiupvW-jCJpsJugav3Lq12hRwEM8ziz4#business
EI- Record of employment
- https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
- If your employees are directly affected by the coronavirus (COVID-19) and they are no longer working, you must issue a Record of Employment (ROE).
- When the employee is sick or quarantined, use code D (Illness or injury) as the reason for separation (block 16). Do not add comments.
- When the employee is no longer working due to a shortage of work because the business has closed or decreased operations due to coronavirus (COVID-19), use code A (Shortage of work). Do not add comments.
- When the employee refuses to come to work but is not sick or quarantined, use code E (Quit) or code N (Leave of absence), as appropriate. Avoid adding comments unless absolutely necessary.
Canada Summer Jobs Program:
- Canada’s small businesses increasingly depend on the employment of young Canadians. The changes to the Canada Summer Jobs program will help small businesses hire and keep the workers they need so they can continue to deliver essential services.
- The temporary changes to the program for this year include:
- an increase to the wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee
- an extension to the end date for employment to February 28, 2021
- allowing employers to adapt their projects and job activities to support essential services allowing employers to hire staff on a part-time basis
- More info: https://www.canada.ca/en/employment-social-development/services/funding/canada-summer-jobs/temporary-flexibility.html
Lowering the domestic stability buffer
- https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#lowering_the_domestic_stability_buffer
- The Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.
Bank of Canada actions
- https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#bank_of_canada_actions
- The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.
- Learn more