Last updated: 17 June 2020
General Information
Canada has announced new financial and tax measures in
response to COVID-19. In addition to extending certain tax filing and payment
deadlines, Canada will provide a variety of financial measures for Canadian
individuals and businesses affected by the COVID-19 outbreak.
The economic stimulus packages announced are highly
focused on immediate needs and Canadian individuals. Economists anticipate
additional stimulus for businesses will be released and updated as the pandemic
unfolds.
On March 18, 2020, the Government announced a further
CAD $82B support package as part of its COVID-19 Economic Response Plan,
including $27B in emergency aid for workers and businesses and $55B in tax
deferrals.
As of March 27, 2020 the measures to support individuals
and businesses announced to date represented roughly $95B in direct support.
The federal government has thus far announced a stimulus
package of more than $107B to help stabilize the economy and support Canadians
during this difficult time. Total measures from federal funding, equivalent to
more than 3.5% of Canada’s GDP, include $52B in direct support for individuals
and businesses and $55B in tax deferrals.
Tax measures – Direct and Indirect
(e.g. payment deferrals, rate reductions…)
Click here to see a
comprehensive
summary of jurisdictional tax measures and government reliefs in
response to COVID-19.
Employment-related measures
(e.g. state compensation schemes, training…)
Nationwide
Canada Emergency Wage Subsidy (CEWS) 75% subsidy
For information regarding the CEWS, please refer to
Tax section
Temporary Wage Subsidy (TWS) 10% subsidy
For information regarding the TWS, please refer to Tax
section
Temporary Relief for Certain Pension Plan
Contributions
The CRA will waive the 1% minimum employer contribution
requirement for money purchase provisions of certain registered pension plans for
the remainder of 2020. This relief will only apply to plans that are amended to
suspend accruals under the plan for the year. This relief measure was announced
on May 5, 2020 and is restricted to plans that submit an amendment to the
Registered Plans Directorate.
Canada Emergency Response Benefit (CERB)
For information regarding the CERB and interaction
with EI and supplementary unemployment benefits, please refer to Tax section.
Canada Emergency Student Benefit (CESB)
For information regarding the CESB, please refer to
Tax section.
Employment Insurance Work Sharing Program
This program provides EI benefits to eligible employees
who agree to reduce their normal working hours and to share the available work
due to new circumstances beyond their employer’s control. This program is
designed to help eligible employers avoid layoffs during certain temporary
reductions in business activity, such as the COVID-19 outbreak. To qualify,
employers must generally:
·
Have been in business in Canada year-round for
at least one year
·
Be a private business, publicly-held company or
a not-for-profit organization
·
Demonstrate that the shortage of work is
temporary and beyond their control
·
Demonstrate a recent decrease in business
activity of approximately 10%
·
Submit and implement a recovery plan designed to
return the Work-Sharing individuals to normal working hours by the end of the
program.
The program must be a minimum of six weeks. The program
allows employers to temporarily reduce an employee’s work schedule between a
minimum of 10% (one half day) and a maximum of 60% (three days), for the
duration of the program. In any given week, the work reduction can vary
depending on available work, as long as the work reduction on average is
between 10%-60% for the duration of the program.
This program is modified so to:
·
increase the eligibility period for shared work
agreements to 76 weeks (the duration of the program was recently increased from
a maximum of 38 weeks as a result of COVID-19)
·
waive the mandatory waiting period between
agreements
·
relax the eligibility requirements, and
·
simplify the application process.
The special measures will be in force from March 15, 2020
until March 14, 2021.
Eligible employees must agree to reduce their normal
working hours and share the available work.
How to benefit
·
The employer or employee wishing to benefit from
the program may consult the
Applicant Guide for eligibility criteria and
application terms.
·
A tripartite agreement between the employer,
employee and Service Canada must be concluded.
·
The applicant must identify the form relevant to
his/her situation by consulting Section E of the Applicant Guide.
·
Prior to COVID-19, employers were required to
send their Work-Sharing request (and supporting documentation) 30 calendar days
before the requested start date.
·
Employers are now asked to submit their
application 10 calendar days before the requested start date.
·
The streamlined measures taken by Service Canada
will strive to reduce the processing time to 10 calendar days.
Temporary income support for workers
Improved access to Employment Insurance Sickness
Benefit
To assist Canadians affected by COVID-19 and quarantined,
Service Canada is improving access to the Employment Insurance Sickness
Benefit:
·
Waiving the one-week waiting period for those individuals
in imposed quarantine that claim Employment Insurance (EI) sickness benefits.
This temporary measure has been in effect since March 15, 2020.
·
Waiving the requirement to provide a medical
certificate to access EI sickness benefits.
·
Claimants who cannot complete their claim due to
quarantine may apply later and have their EI claim backdated to cover the
period of delay.
·
Providing priority EI application processing for
EI sickness claims for people under quarantine.
Supplemental unemployment benefits
·
Employers may also take action to top up an
employee’s EI Benefits. Specifically, employers may establish a Supplementary
Unemployment Benefit (SUB) plan period of unemployment due to a temporary
layoff. Employers considering this plan should register a qualifying SUB plan
with Service Canada, or else the benefit will be treated as income, and any EI
benefits received may be reduced.
Temporary layoffs — Employer obligations
·
Employers may choose at this time to temporarily
lay off employees and cease compensation, where allowed under relevant
provincial legislation. In this case, the employer and employee treat the
employment relationship as ongoing, despite this interruption of the employee’s
services, with the understanding the employee may resume working, in an
equivalent position and on the same terms, in the future. Employers considering
this course of action should consult legal counsel and remember that the
rules in this area can vary significantly by province, including what
constitutes a temporary layoff, how long such layoffs can last, and whether
employers must provide advance notice before placing the employee on
temporary layoff.
·
Generally, layoff periods are unpaid, unless
otherwise provided under an employment agreement, company policy or collective
agreement. However, employees may qualify for Employment Insurance under new
eligibility criteria put in place by the federal government for COVID-19.
Employers should seek legal advice to determine the obligations they must
comply with for their own particular situation when considering whether
to place employees on a temporary layoff.
·
Another important consideration in this area is
that many provinces have different legal requirements that apply to group/mass
termination. In some cases, these rules can also apply to temporary layoffs.
Quebec
Temporary Aid for Workers Program (TAWPCOVID-19) – END
OF MEASURE
·
The program offered financial assistance to meet
the needs of workers who, because they were in isolation to counter the
propagation of COVID-19, couldn’t earn all of their work income and were not
eligible for another financial assistance program.
·
To prevent program duplication, and given that
the Canada Emergency Response Benefit (CERB) is available to the majority of
workers eligible for the PATT, the program was ended on April 10, 2020.
Incentive Program to Retain Essential Workers (IPREW)
·
The Program will provide a benefit of $100 per
week for low-income employees working full-time or part-time in essential
service sectors.
·
The benefit will be paid retroactively to March
15 for a maximum of 16 weeks.
Credit for Health Services Fund (HSF) Contributions
Quebec has announced it will grant certain employers a
credit for their employer contributions to the provincial Health Services Fund
(HSF) for employees on paid leave during COVID-19. This HSF credit will be
available to “specified employers” that can benefit from the CEWS and that maintain
an establishment in Quebec.
·
The amount of the credit for contributions to
the HSF will be equal to the amount of contribution to the HSF paid by a
“specified employer” regarding the wages paid to an employee on paid leave
during a week included in the period beginning on March 15, 2020 and ending on
June 6, 2020. The measure is in force retroactively.
Reduction of periodic payments of the contribution to the
HSF
·
An employer may reduce the periodic payments of
the contribution to the HSF that it is required to remit to Revenue Quebec
after April 30, 2020, by the amount of the credit for contributions to the HSF
attributable to the salary or wages paid to an employee on paid leave before
the periodic payment deadline and that has not reduced another periodic
payment.
Reduction of the contribution to the HSF for the creation
of specialized jobs
·
Where an employer could benefit, for the year
2020, from the credit on employers contribution to the HSF and the reduction in
the contribution to the HSF for the creation of specialized jobs, the qualified
wage for the purpose of the reduction to the contribution to the HSF must be
reduced by an amount equal to the specified wage paid to such an employee.
How to benefit
·
The application for the credit on employers
contribution to the HSF must be submitted to Revenue Quebec when the employer
submits the Summary of Source Deductions and Employer Contributions for 2020
(RLZ-1.S-V and RLZ-1.ST-V).
·
The application must be accompanied by documents
and information that will enable Revenue Quebec to establish the amount of the
credit on employers contribution to the HSF to which the employer is entitled.
British Columbia
·
A new B.C. Emergency Benefit for Workers will
provide a $1,000 payment (tax free benefit) to British Columbians whose ability
to work is affected by pandemic
·
A one-time enhancement to the climate action tax
credit will be paid in July 2020 for moderate to low-income families
·
Employers must excuse workers for sickness
without requiring a doctor’s note
·
Defers to ‘Employment Standards’ on taking
unexpected time off work & “WorkSafeBC” resources for workers
·
Employees can take unpaid, job-protected leave
due to covid-19
·
Overall funding:
o $2.8B
will go to individuals
o $2.2B
will go to small business
Alberta
Emergency isolation support
·
The Government of Alberta recently announced $50
million in financial support for self-isolating Albertans with no other source
of income. These temporary funds are part of government’s COVID-19 response to
keep Albertans safe during this unprecedented global health crisis.
·
Working Alberta adults who have experienced
total or significant loss of income as a result of having to self-isolate or
care for a dependent who is self-isolating can apply for emergency isolation
support payments if: (i) They have been diagnosed with COVID-19. (ii) They are
caring for a dependent who is self-isolating. (iii) They have otherwise been
directed by health authorities to self-isolate. (iv) They are not receiving
compensation from any other source.
·
$50 million for Albertans in self-isolation due
to COVID-19 not receiving Employment Insurance payments; will qualify for a
cash payment of $1146 for two weeks(or $573 per week), meant to bridge the gap
between now and federal aid payments, which are expected to begin in April.
·
Job-protected leave:
o Changes
to the Employment Standards Code will allow full and part-time employees to
take 14 days of job-protected leave if they are: (i) required to self-isolate
(ii) caring for a child or dependent adult that is required to self-isolate
(iii) This leave covers the 14-day self-isolation period recommended by
Alberta’s chief medical officer. This leave may be extended if the advice of
the chief medical officer changes.
WCB Premiums Deferral and Partial Waiver for Small and
Medium Businesses
·
All private sector employers will have their
2020 WCB premiums deferred to early 2021, effectively for one year. For small
and medium businesses, the government will cover 50% of their 2020 premium when
due.
·
Large employers will also receive a break by having
their 2020 WCB premium payments deferred until 2021, at which time their
premiums will be due.
Saskatchewan
In addition to changes made to changes to the
Saskatchewan Employment Act that introduced a new unpaid public health
emergency leave and removed the 13-week employment requirement to access sick
leave and the requirement for a doctor’s note to access sick leave, The
Employment Standard Regulations have been amended to:
·
Ensure that during a public emergency,
businesses will not have to provide notice or pay in lieu of notice when they
lay-off staff if it is for a period of 12 weeks or less in a 16-week period.
·
And if an employer lays off employees
periodically for a total of more than 12 weeks in a 16-week period, the
employees are terminated and are entitled to pay instead of notice as outlined
in the Act. This will be calculated from the date on which the employee was
laid off.
·
These amendments create a balance for employers
and employees where the difficult decision may be made to lay-off employees due
to public health emergencies. In this circumstance, employees would have
immediate access to new federal employment insurance programs, while keeping
employers financially stable to ensure employees have a job to return to.
Deferral of WCB Premium Payments
The Saskatchewan Workers’ Compensation Board (WCB) is
introducing additional relief measures for employers who are unable to pay
their WCB premium payments. Effective April 1 until June 30, 2020, the WCB will
waive penalties and interest charges for late premium payments.
Ontario
Deferral of Workplace Safety and Insurance Board
Payments
·
The Ontario Government is enabling $1.9 billion
in relief for employers to reduce the financial strain on business brought on
by COVID-19. The measure, which will run through the Workplace Safety and
Insurance Board (WSIB), will see premium payments deferred for six months for
all businesses in the province.
·
Schedule 1 employers with premiums owed to
the WSIB will be allowed to defer reporting and payments until August 31,
2020. The deferral will also apply to Schedule 2 businesses that pay WSIB
for the cost related to their workplace injury and illness claims. In addition,
no interest will be accrued on outstanding premium payments and no
penalties will be charged during the deferral period.
Employment Ontario
·
$100M via Employment Ontario for those that lost
their jobs (skills training)
·
Ontario is investing up to $304 million to
enhance the province's response to COVID-19 by providing the following: (i) $50
million to further protect frontline workers, first responders and patients by
increasing the supply of personal protective equipment and other critical supplies
and equipment to protect them, and (ii) $25 million to support frontline
workers working in COVID-19 assessment centers, including the creation of a new
fund to provide respite care, child care services and other supports as they
are needed.
New Brunswick
Job protection for workers
·
Legislative and regulatory amendments will be
introduced to provide job protection for workers who must take a leave of
absence due to COVID-19. It will allow an unpaid leave of up to 15 weeks to New
Brunswickers who have COVID-19 or are caring for someone with the virus.
·
To support the province’s economy, keep workers
employed, and help businesses continue to operate, a total of $50 million in
assistance is being made available.
Worker’s Emergency Income Benefit
·
A one-time income benefit of $900 is available
for workers or self-employed people residing in New Brunswick who have lost
their job due to the state of emergency. The benefit will help to bridge the
gap between when a person lost their job or closed their business on or after
March 15, 2020, to when the national benefit takes effect. The benefit will end
on April 30, 2020.
Prince Edward Island
Employee Gift Card Program
Employee Gift Card Program to support employees, living
and working on Prince Edward Island, who have been laid off due to COVID-19.
Emergency Relief - Worker Assistance Program
The province has announced a maximum payment of $250 per
week to eligible employers for each employed worker that experienced a
reduction of at least 8 hours per week during the four week period March 16,
2020 to April 11, 2020.
Eligible employers include registered private sector
businesses or non-profit organizations in Prince Edward Island where employed
workers have experienced a reduction of at least 8 hours per week during the four-week
period March 16, 2020 to April 11, 2020.
Workers laid off during this period are not eligible for
support under this program.
COVID-19 Income Support Program
PEI has announced a one time, taxable, $750 payment for
eligible individuals. The benefit is available to individuals who, as of March
13, 2020, have lost their job or have been laid off, have had their Employment
Insurance benefits expire and do not yet have a job to return to, or are
self-employed and have lost all revenues through self-employment (and have not
already accessed the Emergency Income Relief for the Self-Employed), due to the
public state of emergency in the province.
To qualify, individuals must:
·
be 18 years of age or older;
·
be a resident of Prince Edward Island as of
December 31, 2019;
·
have earned a minimum of $5,000 gross earnings
in the last 12 months or in the last calendar year;
·
lost their job, had their EI benefits expire or
have lost all self-employment revenues due to the public health state of
emergency in PEI, and
·
have applied for federal benefits (e.g.
Employment Insurance or the Canada Emergency Response Benefit).
Emergency Income Relief for the Self-Employed
A maximum of $500 per week is being made available to
certain self-employed individuals for the period of March 16 to March 29, 2020
(this period will be reviewed as required).
To be eligible for this component self-employed
individuals must:
·
Have declared business income on their most
recent tax return.
·
Business income must be their primary source of
income.
·
Be able to demonstrate direct financial losses
resulting from the COVID -19 isolation measures at the time of application.
·
Not be EI eligible or receiving any other income
support (i.e., Business Interruption Insurance).
Manitoba
WCB Payment Deferral
·
The Workers Compensation Board of Manitoba (WCB)
announced that it will extend the payroll reporting deadline and defer premium
payments until the end of May. In addition, the WCB will not charge business
interest and/or penalties for non-payment until October.
·
Businesses that are expecting to see a dramatic
change in their payroll compared to what they initially reported to the WCB
earlier this year can submit a revised 2020 estimate to the WCB and this year’s
premium will be adjusted accordingly.
Nova Scotia
Worker Emergency Bridge Fund
·
The government will provide a one-time, $1,000
payment, to bridge the gap between layoffs and closures and the federal
government’s Canada Emergency Response Benefit. The payment is intended to help
the self-employed and those laid-off workers who do not qualify for Employment
Insurance.
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
Large Employer Emergency Financing Facility
To help protect Canadian middle class jobs, and safeguard
our economy, Canada will:
·
Establish a Large Employer Emergency Financing
Facility (LEEFF) to provide 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 objective of this
support is to help protect Canadian jobs, help Canadian businesses weather the
current economic downturn, and avoid bankruptcies of otherwise viable firms
where possible. This support will not be used to resolve insolvencies or
restructure firms, nor will it provide financing to companies that otherwise
have the capacity to manage through the crisis. The additional liquidity
provided through LEEFF will allow Canada’s largest businesses and their
suppliers to remain active during this difficult time, and position them for a
rapid economic recovery.
·
Use key guiding principles in providing support
through the LEEFF, including:
·
Protection of taxpayers and workers: Companies
seeking support must demonstrate how they intend to preserve employment and maintain
investment activities. Recipients will need to commit to respect collective
bargaining agreements and protect workers’ pensions. The LEEFF program will
require strict limits to dividends, share buy-backs, and executive pay. In
considering a company’s eligibility to assistance under the LEEFF program, an
assessment may be made of its employment, tax, and economic activity in Canada,
as well as its international organizational structure and financing
arrangements. The program will not be available to companies that have been
convicted of tax evasion. In addition, recipient companies would be required to
commit to publish annual climate-related disclosure reports consistent with the
Financial Stability Board’s Task Force on Climate-related Financial Disclosures,
including how their future operations will support environmental sustainability
and national climate goals.
·
Fairness: To ensure support across the Canadian
economy, the financing is intended to be applicable to all eligible sectors in
a consistent manner.
·
Timeliness: To ensure timely support, the LEEFF
program will apply a standard set of economic terms and conditions.
·
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. Through the BCAP, Export Development Canada (EDC) and the
Business Development Bank of Canada (BDC) will work with private sector lenders
to support access to capital for Canadian businesses in all sectors and
regions.
·
Continue to provide financing to businesses
through Farm Credit Canada, the BDC, and EDC, including through the Canada
Account. This will ensure the government is able to respond to a wide range of
financing needs, including for some large employers facing higher risks, with
stricter terms in order to adequately protect taxpayers.
·
These measures are part of the Government of
Canada’s COVID-19 Economic Response Plan, which has helped protect Canadian
jobs, and committed billions in support to Canadians and businesses facing
hardship as a result of the pandemic. This includes an extension on the Canada
Emergency Wage Subsidy, which allows businesses to keep workers on the payroll.
The government will continue to monitor and respond to the wide-ranging impacts
of COVID-19, and take additional actions as needed to protect the health and
safety of Canadians and stabilize the economy.
On 5 March, the Bank of Canada lowered the policy rate
by 50 basis points. On 12 March, the Bank decided to lower rates by a further
50 basis points from 1.25% to 0.75%. On 11 March, Canada announced a 1 billion
CAD COVID-19 Response Fund with an emphasis on health. On March 27, 2020 The
bank of Canada further reduced its rate by an additional 50 basis to 0.25%.
Business Development Canada (BDC) now offers the
following support for entrepreneurs:
·
Small Business Loan of up to CAD 100 000 can be
obtained online in 48 hours from time of approval;
·
Working capital loan to bridge cash flow gaps
and support everyday operations;
·
Purchase Order Financing to increase cash flow
to fulfil domestic or international orders with very flexible terms.
Increasing credit
·
As announced on 13 March, a new Business Credit
Availability Program will provide more than CAD 10 billion of additional
support to businesses experiencing cash flow challenges through the Business
Development Bank of Canada and Export Development Canada. The Government is
ready to provide more capital through these financial Crown corporations;
·
This $10B was further increased to $40B, and it
was noted that both organizations will partner with banks in providing loans of
up to $6.25M to help SMEs continue to function.
Launch of an Insured Mortgage Purchase Program
·
In order to purchase up to CAD 150 billion of
insured mortgage pools through the Canada Mortgage and Housing Corporation
(CMHC) the Government will enable these measures by raising CMHC’s legislative
limits to guarantee securities and insure mortgages by CAD 150 billion each.
·
The six largest financial institutions in Canada
have made a commitment to work with personal and small business banking
customers on a case-by-case basis to provide flexible solutions to help them
manage through challenges, such as pay disruption due to COVID-19, childcare
disruption due to school or day care closures, or those suffering from
COVID-19. As a first step, this support will include up to a six-month payment
deferral for mortgages, and the opportunity for relief on other credit products.
Interest-free loans
·
The government will guarantee bank loans of up
to $40,000 for small businesses which will be interest-free for the first year,
and under certain conditions, up to $10,000 of the loans could be
non-repayable. The total estimated loan portfolio is estimated to reach $25B
Ensuring Businesses Have Access to Credit
The Business Credit Availability Program (BCAP) will
allow the Business Development Bank of Canada (BDC) and Export Development
Canada (EDC) to provide more than $40 billion of additional support, largely
targeted for oil and gas, air transport, and tourism to small and medium-sized
businesses.
As of May 11, 2020, the BCAP program has been expanded to
support medium-sized companies with larger financing needs including loans up
to $60 million and guarantees of up to $80 million (See next section for
details on the EDC program);
·
Details of the BDC program recently communicated
(these conditions may change at any time and depend on the BDC file analysis):
BDC Co-lending Program
·
Eligible businesses may obtain Differing maximum
finance amounts based on business revenues, up to $6.25 million, 80% of which
would be provided by BDC, with the remaining 20% provided by the financial
institution.
·
The Co-Lending Program is available to Canadian
businesses impacted directly or indirectly by COVID-19 until or before
September 30, 2020. To qualify, companies must have been financially viable and
in good standing prior to the impact of the pandemic.
BDC Working Capital Loan
·
Working capital loans of up to $2 million with
flexible terms; million with flexible terms and payment postponements for up to
6 months for qualifying businesses;
BDC oil and gas sector financing
·
For Canadian-based oil and gas producers,
oil field service companies and midstream providers.
·
Funds to be used for operational cashflow and
business continuity purposes.
·
Loan size between $15M and $60M.
·
Offered at commercial rates, repayable within
4 years.
How it works:
·
The deployment for this measure will be
finalized shortly.
·
In order to be eligible, the business must have
been financially viable prior to the impact of COVID-19.
EDC
Changes to bank loan guarantees (Export Guarantee Program
and International Expansion Loan Program –for listed financial institutions);
Offered in conjunction with our partner financial
institutions, EDC’s Export Guarantee Program offers a payment guarantee to your
financial institution, making it more inclined to provide you with additional
cash. In the short term, we can:
·
Provide a six-month payment extension period to
our new and existing clients for guarantee fees.
·
Simplify our enrollment procedures to provide
cash flow support quickly.
·
Increase our credit capacity in the market by
easing our general appetite for credit.
Under the Business Credit Availability Program (BCAP),
EDC provides your financial institution with a guarantee on a client’s one-year
operating loan or one-year term loan. This guarantee provides incremental
emergency liquidity to Canadian companies affected by the COVID-19 crisis,
allowing them to pay their employees and cover their operating expenses in the
short term. The key elements of this new program are:
·
A program based on the same principles as the
Export Guarantee Program, but with a greater appetite for risk and targeting
SMEs.
·
An 80% guarantee given to your financial
institution on the underlying credit facility.
·
A streamlined process that builds on the
underwriting and due diligence processes of EDC-approved partner financial
institutions to ensure that SMEs have a quick access to working capital.
·
The possibility of a six-month deferral for the
payment of guarantee fees (payable to EDC).
Changes to our trade finance guarantees (Account
Performance Security Guarantee and Foreign Exchange Facility Guarantee) in our
bonding products:
EDC’s trade financing solutions eliminate the need for
collateral, helping businesses to free up their working capital. In the short
term, we can:
·
Enhance support by 25% (limit for high-activity
period) offered under the Account Performance Security Guarantee for up to US$5
million in capacity;
·
Simplify our enrollment procedures so that we
can meet the needs of businesses during this difficult time and benefit from
our increased appetite for risk;
·
Reduce the rate for our Foreign Exchange
Facility Guarantee by 30% and defer payment for six months.
Changes to the credit insurance solutions:
In the short term, the EDC is making changes to its
insurance solutions (Portfolio Credit Insurance and Select Credit Insurance) to
help businesses with temporary cash flow issues. Here is how:
·
When assessing claims for new buyers, they are
willing to take more risks than in the past.
·
More flexible when the buyer’s solvency has
deteriorated.
·
Plan to make premium payments more flexible,
either by deferring or adjusting fixed payments.
·
For the next three months elimination of the
time limit for claims under the export policy, which will allow companies to
submit a claim and receive a payment earlier than under normal policy
conditions.
Only for Select Credit Insurance and eligible companies:
·
EDC is increasing our maximum coverage so that
it will insure buyer limits of up to C$1 million (an increase of C$500,000). We
are currently updating our systems to integrate this change.
·
For the next 90 days, EDC will cover losses for
goods shipped even if the purchaser has not accepted the goods in question
(subject to policy conditions, including a dispute with the purchaser).
Canada Emergency Commercial Rent Assistance for small
businesses (CECRA)
The federal government has reached an agreement in
principle with all provinces and territories to implement the Canada Emergency
Commercial Rent Assistance (CECRA) for small businesses.
This program will lower rent by 75% for small businesses
that have been affected by COVID-19.
The government is also providing further details on the program:
·
The program will provide forgivable loans to
qualifying commercial property owners to cover 50% of three-monthly rent
payments that are payable by eligible small business tenants who are experiencing
financial hardship during April, May, and June.
·
The loans will be forgiven if the mortgaged
property owner agrees to reduce the eligible small business tenants’ rent by at
least 75% for the three corresponding months under a rent forgiveness agreement,
which 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.
Eligible businesses are:
·
Small business tenants paying less than $50,000
per month in rent and
·
Who have temporarily ceased operations or have
experienced at least a 70 per cent drop in pre-COVID-19 revenues.
This support will also be available to non-profit and
charitable organizations.
Additional details
·
The Canada Mortgage and Housing Corporation will
administer and deliver the CECRA, a collaboration between the federal
government and provincial and territorial governments, which are responsible
for property owner-tenant relationships.
·
Provinces and territories have agreed to cost
share total costs and facilitate implementation of the program. They will cost
share up to 25% of costs, subject to terms of agreements with the federal
government.
·
It is expected that CECRA will be operational by
mid-May, with commercial property owners lowering the rents of their small
business tenants payable for the months of April and May, retroactively, and
for June.
·
Further details on CECRA will be shared in the
near future once final terms and conditions are available. The federal
government and provincial and territorial governments urge property owners to
provide flexibility to tenants facing hardship in this uncertain time.
Small and Medium-sized Enterprise Loan and Guarantee
program
·
The Development Bank of Canada (BDC), Canada’s
bank for entrepreneurs, and Export Development Canada (EDC), Canada’s export
credit agency, have launched the new Small and Medium-sized Enterprise Loan and
Guarantee program, which will make available up to $40 billion in additional
lending.
·
The new Small and Medium-sized Enterprise Loan
and Guarantee program will operate as follows:
o Small
and medium-sized businesses can get support through a new co-lending program
that will bring together the BDC and financial institutions to co-lend term loans
to these businesses for their operational cash flow requirements. Eligible
businesses may obtain additional credit: 80% of which would be provided by BDC,
with the remaining 20% by their financial institution. The program is designed
in three segments to target support to different business sizes: Loans of (1)
up to $312,500 to businesses with revenues of less than $1 million; (2) up to
$3.125 million for businesses with revenues between $1 million and $50 million,
and (3) up to $6.25 million for businesses with revenues in excess of $50
million. Loans would be interest bearing for the first 12 months only, with a
10-year repayment period.
o EDC
will also provide funding to financial institutions so that they can issue new
operating credit and cash flow term loans of up to $6.25 million to small and medium-sized
businesses, as a result of a new national mandate enhancing EDC’s role in
supporting Canadian businesses through the COVID-19 crisis. These loans will be
80% guaranteed by EDC, to be repaid within one year.
o The
program will help Canadian financial institutions provide credit and liquidity
options that various businesses need immediately, funded by BDC and EDC.
o To
access these loans, entrepreneurs must contact their main financial
institution, which will assess their situation and provide funding accordingly.
o Eligible
companies could obtain up to $12.5 million through these two loan options.
Supporting Financial Market Liquidity
The Government is launching an Insured Mortgage Purchase
Program (IMPP). Under this program, the government will purchase up to $50
billion of insured mortgage pools through the Canada Mortgage and Housing
Corporation (CMHC).
This represents a $100 billion increase over the $50
billion announced on March 16, 2020. This measure will provide stable funding
to banks and mortgage lenders and support continued lending to Canadian
businesses and consumers.
Financial institutions to provide 6-month payment
deferral for mortgages & opportunity for relief on other credit products.
Canada Mortgage & Housing Corporation (CMHC) permitting lenders to allow
payment deferral, loan re-amortization & special payment arrangements.
Office of Superintendent of Financial Institutions (OSFI) immediately lowering
Domestic Stability Buffer by 1.25% of risk-weighted assets allowing banks to
inject $300B into economy.
Insurance of mortgage pools through CMHC up to $50B.
Farm Credit Canada
Farm Credit Canada will receive an additional $5B in
lending capacity to producers, agribusiness, and food processors. Eligible
farmers who have an outstanding Advance Payments Program (APP) loan will also
receive a Stay of Default (6-month moratorium). Applicable farmers who have
existing interest-free loans outstanding will have opportunity to apply for
additional $100K portion for 2020-2021 (if advances remain under $1M cap).
For producers, agribusinesses and food processing
industry:
·
Deferral of capital and interest payments for a
maximum of six months for existing loans or deferral of capital payments for a
maximum of 12 months;
·
Access to an additional line of credit of up to
$500,000, guaranteed by a general security contract or universal mortgage (in
Quebec only).
·
Term loans of up to $2.5M, with no fees. An
18-month interest-only option is available as well as a 10-year amortization
period.
·
These funds can be used for working capital
needs and to modify production due to the repercussions of COVID-19.
Aviation
·
The government will waive rent payments from
March 2020 to December 2020 for the 21 airport authorities that pay rent to the
federal government.
·
This measure will provide a maximum relief of
$331.4 million due to payments made during the same period in 2018.
Partnership with Canadian industries to fight COVID-19
($2 billion):
Canadian businesses and manufacturers are stepping up to
fight the COVID-19 pandemic. The Government of Canada is working with these
companies to ensure our health care workers have the tools they need to care
for Canadians across the country. The Federal government has partnered with
over 3,000 Canadian companies to support the need for diagnostic testing,
ventilators and protective personal equipment.
Government of Canada provides relief to the
Broadcasting sector:
·
The Canadian Radio-television and
Telecommunications Commission (CRTC) will not issue letters requesting payment
for Part 1 license fees by broadcasters for the 2020-21 fiscal year. The
government will transfer necessary funds to the CRTC to support its operations.
·
Waiving these regulatory charges for
broadcasters provides immediate financial relief for the broadcasting industry,
freeing up more than $30 million in cash.
Canada Emergency Business Account
·
The Government of Canada is announcing the
launch of the new Canada Emergency Business Account, which will be implemented
by eligible financial institutions in cooperation with Export Development
Canada (EDC).
·
This $25 billion program 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 revenues have
decreased temporarily due to the economic impacts of the COVID-19.
·
To qualify, these organizations will need to
demonstrate that they had an annual payroll of less than $1.5 million in total
in 2019.
BDC Venture Capital
BDC Capital, has launched the BDC Capital Bridge
Financing Program under which it will make investments, in the form of
convertible notes, equivalent to those committed by existing vendors or new
qualified investors in the context of ongoing financing round in favor of an
eligible business.
·
To be eligible, companies must be Canadian,
backed by a qualified venture capital firm, have raised at least $500,000 in
external capital before applying for the program, and be specifically impacted
by COVID-19.
·
Any investment by BDC Capital will be subject
to, in particular, due diligence to the satisfaction of BDC, agreement on terms
of the investment and approval by a BDC Investment Committee.
·
This is not limited to BDC’s portfolio. All
companies that meet the criteria are eligible to apply. Interested companies
should speak to their lead investor for details.
Farm Credit Canada
For producers, agribusinesses and food processing
industry:
·
Deferral of capital and interest payments for a
maximum of six months for existing loans or deferral of capital payments for a
maximum of 12 months;
·
Access to an additional line of credit of up to
$500,000, guaranteed by a general security contract or universal mortgage (in
Quebec only).
Regional Relief and Recovery Fund (RRRF)
The Regional Relief and Recovery Fund (RRRF) of $962M
will help to mitigate the cash flow issues experienced by businesses and
organizations and to support businesses, organizations and communities in
achieving successful recovery. This initiative is implemented by the six (6)
RDAs of Canada.
This initiative includes two (2) components:
·
$675M to support regional economies, businesses,
organizations and communities in regions all across Canada;
·
$287M to support the national network of
Community Futures Development Corporations, which will specifically target
small businesses and rural communities across the country.
Support for the arts, culture and sports sectors
·
A financing of $500M through the creation of the
COVID-19 Emergency Support Fund to help address the financial needs of affected
organizations within the sectors of culture, heritage and sports.
·
Further details regarding the programs offered
in this support fund of $500M will be announced shortly.
Support for young entrepreneurs
·
A financing of $20.1M in support for
Futurpreneur Canada to continue supporting young entrepreneurs across Canada
who are facing challenges due to COVID-19. The funding will allow Futurpreneur
Canada to provide payment relief for its clients for up to 12 months.
Support for the energy sector
·
$1.72B: Funding to the governments of Alberta,
Saskatchewan, and British Columbia, and the Alberta Orphan Well Association, to
clean up orphan and/or inactive oil and gas wells. This measure will help to
create thousands of jobs and achieve lasting environmental benefits.
·
$750M: New proposed Emissions Reduction Fund to
reduce emissions in Canada’s oil and gas sector, with a focus on methane. This
fund will provide primarily repayable contributions to conventional and
offshore oil and gas firms in order to support their investments to reduce
greenhouse gas emissions. Of this amount, $75M will be allocated to the
offshore sector.
Support for Seniors
In April, the Government of Canada introduced measures to
support seniors. As a result, an investment of $1.3 billion was made in a
one-time special payment through the Goods and Services Tax (GST) credit. More
than 4 million seniors benefited from this top-up, which gave an average of $375
for single seniors and $510 for senior couples. The federal government also
invested in community organizations that provide practical services to Canadian
seniors, including the delivery of groceries and medications.
As of May 12, 2020, the government announcement a series
of additional measures to help Canadian seniors and provide them with greater
financial security during the crisis:
·
Providing additional financial support of $2.5
billion for a one-time tax-free payment of $300 for seniors eligible for the
Old Age Security (OAS) pension, with an additional $200 for seniors eligible
for the Guaranteed Income Supplement (GIS). This measure would give a total of
$500 to individuals who are eligible to receive both the OAS and the GIS, and
will help them cover increased costs caused by COVID-19.
·
Expanding the New Horizons for Seniors Program
with an additional investment of $20 million to support organizations that
offer community-based projects that reduce isolation, improve the quality of
life of seniors, and help them maintain a social support network.
·
Temporarily extending GIS and Allowance payments
if seniors’ 2019 income information has not been assessed. This will ensure
that the most vulnerable seniors continue to receive their benefits when they
need them the most. To avoid an interruption in benefits, seniors are
encouraged to submit their 2019 income information as soon as possible and no
later than by October 1, 2020.
Support for fish harvesters
On May 14th, the Federal Government announced up to
$469.4 million in new measures to support Canada’s fish harvesters, who are
economically impacted by the pandemic but cannot access existing federal
measures. This investment builds on the $62.5 million for the new Canadian
Seafood Stabilization Fund announced last month to help Canada’s fish and
seafood processing sector.
·
Fish Harvester Benefit: A program worth up to
$267.6 million, to help provide income support for this year’s fishing seasons
to eligible self-employed fish harvesters and sharespersons crew who cannot
access the Canada Emergency Wage Subsidy. Support will be provided to those
that experience fishing income declines of greater than 25 per cent in the 2020
tax year, compared with a reference period to be identified. This measure
covers 75 per cent of fishing income losses beyond a 25 per cent income decline
threshold, up to a maximum individual entitlement equivalent to what is
provided under the Canada Emergency Wage Subsidy ($847 per week for up to 12
weeks).
·
Fish Harvester Grant: A program worth up to
$201.8 million, to provide grants to help fish harvesters impacted by the
COVID-19 pandemic, and who are ineligible for the Canada Emergency Business
Account or equivalent measures. This will give them more liquidity to address
non-deferrable business costs. The program would provide non-repayable support
of up to $10,000 to self-employed fish harvesters with a valid fishing licence.
Size of the non-repayable support will vary depending on the level of fish
harvesters’ historic revenue.
·
Propose measures or changes to Employment
Insurance (EI) that would allow self-employed fish harvesters and sharespersons
to access EI benefits based on insurable earnings from previous seasons (winter
and summer claims). Additional details to be made available.
Support for the academic research community
·
On May 15th, the Government of Canada announced
$450 million in funding to help Canada’s academic research community during the
COVID-19 pandemic. The investment will provide wage supports to universities
and health research institutes, so they can retain research staff who are
funded from industry or philanthropic sources and are unable to access some of
the government’s existing COVID-19 support measures. The government will
provide up to 75 per cent per individual, with a maximum of $847 per week.
Support for the Indigenous community
·
On March 18, the Government of Canada announced
$305 million for a new, distinctions-based Indigenous Community Support Fund to
address immediate needs in Indigenous communities, and help them respond to
COVID-19. The Fund included $15 million in support for Indigenous organizations
that provide services to Indigenous peoples living in urban centres and off
reserve. On May 21st, the Government further announced $75 million in new
funding for Indigenous organizations providing services to Indigenous peoples
in urban centres and off reserve. Funding for projects will start rolling out
in the coming weeks.
Alberta:
·
The Government of Alberta has enacted a $13
billion comprehensive response to protect the safety, security and economic
interests of Albertans amidst the ongoing COVID-19 outbreak.
Credit availability:
·
Small business loans, mortgages or lines of
credit through ATB will be able to apply for payment deferrals for up to 6
months and access additional working capital.
Manitoba:
·
Manitoba Budget increased the government’s
emergency expenditures contingency fund to $100 million from $43.8 million.
·
Manitoba also noted it has identified $500
million in planned expenditures that could be deferred or redeployed if
required.
·
Manitoba Budget 2020 released March 19, 2020,
contained a supplement providing information to Manitobans regarding measures
within the Budget that serve as the foundation for the government’s fiscal
response to the fast-evolving public health and economic challenges posed by
the Coronavirus disease(COVID-19), which the World Health Organization (WHO) declared
a pandemic on March 11, 2020.
·
Manitoba’s Rainy Day Fund is currently funded to
$571 million. As a key part of the Province’s fiscal response to COVID-19, the
balance will grow to $800 million before the end of this month, and to $872
million by the end of the 2020/21 fiscal year.
·
Manitoba announced it is providing $10 million
in grants to support 344 projects for community development projects as part of
restarting the provincial economy during the COVID-19 pandemic.
·
The Manitoba Gap Protection Plan will provide
small and medium-sized businesses a non-interest bearing forgivable loan of
$6,000 to businesses that do not qualify under federal programs
·
Investments up to $120M in new wage subsidy
program to support employers from the private and non-profit sectors to hire
high school and post secondary students this summer. Employers are eligible to
receive a $7 per hour wage subsidy, up to $5,000 per student, for a maximum of
5 students. The program is available for student employment between May 1 and
September 4, 2020.
Quebec
Canada Economic Development (CED) for Quebec Regions
If you are an existing CED client and are affected by the
current situation:
·
Effective April 1st, CED will apply a
three-month moratorium on all amounts owing to CED;
·
You may also be eligible for additional funding
and flexibility in your arrangements;
·
Each case will be assessed individually as the
situation evolves to determine if additional support is required.
If you are not an CED client and are affected by the
current situation:
·
CED may provide you with advice and guidance on
other federal programs and services available to you;
·
You may have access to federal funding to help
you maintain your operations.
Outstanding loans and guarantees:
·
Loan flexibility measures already provided by
Investissement Québec can be implemented. This is not an automatic measure such
as the loans made by the BDC. A request must therefore be made specifically to
benefit from the flexibility measures;
·
Local investment funds (Fonds locaux
d’investissement, or “FLI”): a three (3) month moratorium was introduced for
the repayment (principal and interest) of loans already granted. Two-year
extension of the FLI, i.e. until December 31, 2022.
·
Interest earned during this period will be added
to the loan balance. This is in addition to the moratorium already in place
under most of the investment policies in force in the RCMs, which can reach
twelve months.
Program for Maintaining Employment (PACME-COVID-19)
·
The program provides a 100% reimbursement for
eligible expenses incurred, for example, professional trainer fees, equipment
purchase, and human resources management activities.
·
Eligible businesses have had their usual
activities suspended, reduced, increased or diversified as a result of the
COVID-19 pandemic.
·
The PACME reimburses 100% of eligible
expenditures of $100,000 or less and 50% of expenses between $100,000 and
$500,000.
Concerted Action Program for Maintaining Employment
(PACME-COVID-19)
·
The program provides a 100% reimbursement for
eligible expenses incurred, for example, professional trainer fees, equipment
purchase, and human resources management activities.
·
Eligible businesses have had their usual
activities suspended, reduced, increased or diversified as a result of the
COVID-19 pandemic.
·
The PACME reimburses 100% of eligible
expenditures of $100,000 or less and 50% of expenses between $100,000 and
$500,000.
Eligible expenses include:
·
reimbursement of wages (excluding payroll taxes,
maximum allowable salary of $25 per hour), up to:
·
25% of the payroll of workers during eligible
training, if the company receives Canada’s emergency wage subsidy of 75%;
·
90% of the payroll of workers during eligible
training, if the company receives Canada’s temporary wage subsidy of 10%;
·
100% of workers’ wages during eligible
training, if the company does not receive any federal wage subsidy.
·
reimbursement of up to 100% of eligible training
expenses, related costs and costs related to human resources management
activities, according to the applicable scales (e.g. professional fees).
Caisse de dépôt et placement du Québec
·
This funding program is targeted at companies
whose cash flow is affected by the impact of COVID-19.
·
$4 billion to support Quebec businesses
temporarily affected by the crisis:
·
This support is intended to complement various
initiatives announced by other financial institutions, Quebec institutional
investors and the governments of Quebec and Canada.
Eligibility criteria
·
Available to all Quebec businesses (whether they
are already clients or not);
·
Profitable business before the COVID-19 crisis;
·
Firm with promising growth prospects in their
sector and seeking more than $5M in financing.
Close relations with financial institutions
·
The Government recommends that companies first
contact their financial institutions. The link will then be made with the
regional offices of Investissement Québec, which will deploy all its resources
to the PACTE program.
Emergency assistance for small and medium-sized
businesses
·
This is in addition to the Concerted temporary
action program for businesses (PACTE).
·
To help businesses, the he Government of Quebec
is making available an initial amount of $150 million to the RCMs and
territories. The cities of Montreal and Quebec will each receive $40 million
and $10 million respectively, of the allocated $150 million. The other RCMs and
equivalent territories will share the remaining $100 million.
·
Businesses in all industries, including
cooperatives, not-for-profit organizations and social economy enterprises
engaged in business activities, will be able to obtain a loan or loan guarantee
of up to $50,000 to address the liquidity shortfall due to COVID-19.
Support for innovation projects
·
Program to support businesses and business
combinations at the various stages of an innovation project to help build their
capacity for innovation.
·
Eligible projects are innovation projects of
product or process, from the planning stage to the pre-marketing stage
(technological showcase).
·
For each of the projects, the financial
assistance granted to applicants takes the form of a non-refundable
contribution.
Concerted temporary action program for businesses
(included in the ESSOR program):
On March 19, 2020, the Premier of Quebec François Legault
and the Minister of Economic Development, Innovation and Export Trade, Pierre
Fitzgibbon, announced Quebec’s plan action plan for businesses valued at over
$2.5B for this program. This $2.5B is not a firm limit and that if greater
needs arise, the Government of Quebec will respond.
This funding program is targeted at companies whose cash
flow is affected by the impact of COVID-19.
·
This financial assistance is available to
businesses operating in Québec, including cooperatives and other social economy
enterprises with commercial activities. Eligible businesses are those that find
themselves in a precarious situation and temporary difficulty as a result of
COVID-19. They must show that their financial structure offers realistic
prospects for profitability.
Eligible Projects:
Businesses must show that their cash flow issues are
temporary and that the liquidity shortage stems from:
·
A problem involving the supply of raw materials
or products (goods or services)
·
An inability, or a substantially decreased
ability, to deliver goods, products or services
·
Applications will be reviewed on a case-by-case
basis, according to the business’s circumstances and Investissement Québec’s
management practices.
Funding details:
·
A loan guarantee is the preferred form of
financing. Financing can also take the form of a loan from Investissement
Québec.
·
Barring exceptions, businesses in all industries
are eligible to this program.
All industries are eligible, except for the following:
·
(i) Weapons manufacturing or distribution;(ii)
Games of chance and gambling, combat sports, racing and other similar
activities; (iii) Production and sale of tobacco and drugs along with services
related to their use, except for projects involving pharmaceutical-grade
products approved by Health Canada and having a DIN, or their ingredients, as
well as R&D projects licensed by Health Canada; (iv) Any activity whose
main purpose is protected by the Canadian Charter of Rights and Freedoms
(religion, politics, human rights advocacy, etc.); (v) any other activity that
may offend public morals.
·
Investissement Québec aims to work in close
cooperation with financial institutions and federal authorities in order to
share risk: (i) The minimum funding amount is $50,000; (ii) Refinancing is
prohibited; (iii)This measure is designed to shore up the business’s working capital.
How it works:
Existing IQ clients: contact the account manager
by email or telephone.
Non-client businesses: to obtain a loan guarantee,
contact the financial institution, which will then be able to contact one of
the IQ account managers.
Economie et Innovation Quebec
Support for innovation projects
·
Program to support businesses and business
combinations at the various stages of an innovation project to help build their
capacity for innovation.
·
Eligible projects are innovation projects of
product or process, from the planning stage to the pre-marketing stage
(technological showcase).
·
For each of the projects, the financial
assistance granted to applicants takes the form of a non-refundable contribution.
·
To take advantage of this measure, the business
must demonstrate that the innovation project meets the criteria established by
the ministry.
·
For ongoing financial assistance requests, the
financial assistance rates and accrual rates are determined by the program.
FTQ
·
The Fund provides all businesses in its
portfolio with a six (6) month carryovers of payments related to loans, capital
and interest included.
·
This measure aims to relieve in the short term
the financial pressures of the companies in its network, which includes the FTQ
Regional Solidarity Funds.
Fondaction
On March 13, 2020, Fondaction announced that the payment
of loans, capital, and interest, for all businesses directly financed by
Fondaction, would be deferred for a period of three (3) months starting from
the date of announcement.
Newfoundland & Labrador
·
Provide long-term borrowing authority of $2
billion. This will allow for ongoing government operations, as well as the
ability to respond to current revenue volatility.
·
The deferral of more than $6 million in fees to
help ease some of the operational pressures facing businesses and free-up cash
flow in these uncertain times.
New Brunswick
Working capital for medium-sized to large employers
·
The province will provide working capital of more
than $200,000 to help medium-sized to large employers manage the effects of
COVID-19 on their operations. Businesses can apply directly to Opportunities NB
for this support.
Working capital for small businesses
·
Small business owners will be eligible for loans
up to $200,000. They will not be required to pay principal on their loan for up
to 12 months.
Prince Edward Island
General funding announced
·
Establishing a $25 million COVID-19 Emergency
Contingency Fund
Business financial support
·
Deferring all scheduled loan payments for
clients of Finance PEI, Island Investment Development Inc., and the PEI Century
Fund for the next 3 months;
·
Suspending repayments for provincial student
loans for the next six months; and;
·
Emergency Relief Worker Assistance Program a
temporary allowance of $200 per week for anyone who has experienced a
significant drop in their working hours.
·
Emergency Income Relief for the self-employed,
which will provide $500 per week lump sum for self-employed Islanders,
delivered through Innovation PEI.
·
Emergency Working Capital Financing, which will
provide support for small businesses through a capital loan of up to$100,000
with a fixed interest rate of 4% per annum, to be delivered through Finance PEI.
·
$4.5 million to Community Business Development
Corporations across the province to deliver financing to small business and
entrepreneurs.
·
Essential workers earning $3,000 per month or
less can receive a one-time $1,000 payment, administered through eligible
employers.
Nova Scotia
General business funding
Government will defer payments until June 30 for:
·
The government will invest $161 million to
address cash flow and access to credit for small and medium-sized businesses in
Nova Scotia.
·
All government loans, including those under the
Farm Loan Board, Fisheries and Aquaculture Loan Board, Jobs Fund, Nova Scotia
Business Fund, Municipal Finance Corp. and Housing Nova Scotia.
·
The Small Business Loan Guarantee Program
·
Small business fees, including business renewal
fees and workers compensation premiums.
Changes to the Small Business Loan Guarantee Program, administered
through credit unions, include: (i) deferring principal and interest payments
until June 30, (ii) enhancing the program to make it easier for businesses to
access credit up to$500,000; (iii) Those who might not qualify for a loan,
government will guarantee the first$100,000.
Further measures include: (i) Deferring principal and
interest payments until June 30 (ii) small businesses which do business with
the government will be paid within five days instead of the standard 30 days (iii)
suspending payments on Nova Scotia student loans for six months, from March 30
to Sept. 30 and students do not have to apply; (iv) ensuring more Nova Scotians
can access the internet to work from home, by providing $15 million as an
incentive to providers to speed up projects under the Internet for Nova Scotia
Initiative and complete them as soon as possible.
British Columbia
B.C. COVID-19 Supply Hub and Manufacturing
Supercluster
·
The Province has partnered with the Digital
Technology Supercluster and the Business Council of British Columbia to create
the COVID-19 Supply Hub, a made-in-B.C. online platform to co-ordinate, source
and expedite medical supplies and personal protective equipment (PPE) for
provincial health authorities to support front-line health workers fighting
COVID-19.
·
Companies can get up to $5 million to cover up
to 100% of eligible costs when they collaborate with other businesses on a
project that has an immediate impact on curbing the effects of COVID-19.
·
Now accepting offers. Project to take place
between April and June 2020.
·
To be eligible there are five critical areas of
need for which submissions must address: (i) health system; (ii) community
health; (iii) safe living; (iv) diagnostics and therapeutics; and (v) emergency
response.
The Ministry and B.C. Arts Council
·
The Ministry and the BC Arts Council have been
working hard to develop an immediate and responsive plan to support the arts
and culture sector through the COVID-19 crisis.
·
Benefits include:
o 50%
of last year’s operating grant as an advance for the next intake cycle (April
and September).
o One-time
grant will range (maximum $15,000) depending on the size of your organization.
·
Current Operating Assistance clients will
automatically receive the supplement and operating grant.
BC Hydro and ICBC Payment Relief
·
BC Hydro
o BC
Hydro is allowing customers to defer bill payments or arrange for flexible
payment plans with no penalty through their COVID-19 Customer Assistance
Program. Customers experiencing financial hardship are eligible.
o Customers
are encouraged to call BC Hydro’s customer team at 1-800-224-9376 to discuss
bill payment options.
·
ICBC
o ICBC
is allowing customers who are facing financial challenges due to COVID-19 to
defer their payment for up to 90 days with no penalty.
o Customers
are encouraged to call 604-661-2723 or 1-800-665-6442 to discuss payment
options.
Expanding Income Assistance and Disability Assistance
·
For people in B.C. currently receiving income
assistance or disability assistance, the Province has announced the following
measures:
o Temporarily
exempt federal employment insurance benefits, including the CERB, for three
months so these new emergency federal support programs won’t reduce monthly
assistance payments
o An
automatic $300-monthly supplement for the next three months for everyone on
income assistance or disability assistance who is not eligible for the
emergency federal support programs, including the CERB
o Monthly
$52 Transportation supplement for all BC Bus Pass Program users receiving
income assistance and disability assistance for the duration of the fare
suspension by BC Transit and Translink.
o
Measures to ease the lockdown
·
Reopening of stores and school on May 11 in
Quebec except in Montreal (May 19). Restaurants can serve take-out meals and
making deliveries until further notice.
Other measures and sources
Main sources of information:
