Support for Businesses

Access to Credit

Additional financing and credit insurance solutions are available through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC).

This program includes the Canada Emergency Business Account (CEBA). The CEBA will provide up to $40, 000 in interest-free loans to small businesses and not-for-profits that have a payroll between $20 000 and $1.5million.

Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

 

Loans are accessed through your existing financial institutions. 

More information on Credit Access is available here. 

Please work with your existing financial institutions to access these programs. 

Tax Deferrals

Sales tax remittances and customs dues payments have been deferred to June 30. 

Income tax payments have been deferred to August 31, interest free. 

EI Work Share Program

The program provides EI benefits to eligible employees who agree to reduce their normal working hours and share the available work. 

To apply or for more information, click here

Canada Emergency Wage Subsidy

The government announced an up to 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.  

How do I know if my business is eligible?

In order to be eligible for the CEWS, an employer must be able to demonstrate a 15% revenue loss in March, or a 30% revenue loss in April, compare with either the same month in 2019 or compared to the average of January and February 2020. 

How much of an employee's wages does CEWS cover?

CEWS provides a 75% wage subsidy, up to $847 per week per employee. There is no limit to the number of employees a business can have on wage subsidy. 

How do I apply?

Eligible businesses are invited to apply through their My Business Account portal. 

For more information, click here. 

Canada Emergency Commercial Rent Assistance (CECRA)

The CECRA will provide forgivable loans to qualifying commercial property owners equal to 50% of three monthly rent payments of small business tenants.

What businesses are eligible? 

Businesses that commercial landlords can receive a supplement for the rent of must meet the following criteria: 

- The business pays less than $50 000 per month in rent. 

- The business has ceased operations or has experienced a minimum 70% decline in revenue compared to pre-COVID revenues.

- Non-profits and charities are also eligible. 

What must the commercial landlord do to receive the assistance? 

The landlord must

- Reduce the small business tenants' rent by at least 75% under a rent forgiveness agreement

- The agreement will include a term not to evict the tenant while the agreement is in place

- The small business tenant can be required to cover the remainder of the rent, up to 25%. 

When will the CECRA be operational? 

It is expected that CECRA will be operational by mid-May, and further details will be announced soon.

For more information on government programs to help businesses, please visit:  https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses

© 2020 Nelly Shin, MP

www.nellyshin.ca