COVID-19 Resources
Financial Support Programs for Small Business Owners Impacted by COVID-10
Government and private-sector support programs are changing rapidly. Please visit the official websites of the programs you are interested in to get the most up-to-date information.
Canada Emergency Response Benefit (CERB)
Amount: A flat rate of $2,000 a month for up to four months. The benefit is taxable but no tax will be taken directly from the cheque, instead it will be payable next year.
The CERB will cover workers residing in Canada who:
-
- Have lost their job
- Are sick, quarantined, or taking care of someone who is sick with COVID-19
- Are working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures
- Are still employed, but are not receiving any income because of disruptions to their work situation due to COVID-19, and
-
- Had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application (could be employment income, self-employment income or dividends from a business taxed at the small business rate); and
- Are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment income
The CERB will apply to:
-
- Wage earners
- Contract workers
- Self-employed individuals who would not otherwise be eligible for Employment Insurance (EI). This includes sole-proprietors.
Canadians cannot receive EI regular and sickness benefits and CERB in the same time. Visit the details page for more information about exceptions.
Application: There are two ways to apply:
-
- Online with CRA My Account
- Over the phone with an automated phone service by calling the 1-800-959-2019
You will have to re-apply every month.
Details: More details on the program can be found here: https://www.canada.ca/en/
Canada Emergency Response Benefit (CERB)
Amount: A flat rate of $2,000 a month for up to four months. The benefit is taxable but no tax will be taken directly from the cheque, instead it will be payable next year.
The CERB will cover workers residing in Canada who:
-
- Have lost their job
- Are sick, quarantined, or taking care of someone who is sick with COVID-19
- Are working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures
- Are still employed, but are not receiving any income because of disruptions to their work situation due to COVID-19, and
-
- Had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application (could be employment income, self-employment income or dividends from a business taxed at the small business rate); and
- Are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment income
The CERB will apply to:
-
- Wage earners
- Contract workers
- Self-employed individuals who would not otherwise be eligible for Employment Insurance (EI). This includes sole-proprietors.
Canadians cannot receive EI regular and sickness benefits and CERB in the same time. Visit the details page for more information about exceptions.
Application: There are two ways to apply:
-
- Online with CRA My Account
- Over the phone with an automated phone service by calling the 1-800-959-2019
You will have to re-apply every month.
Details: More details on the program can be found here: https://www.canada.ca/en/
Canada Emergency Wage Subsidy (CEWS) – “75% Wage Subsidy”
Here is what we know:
- Businesses (regardless of the number of employees)
- Individual employers
- Partnerships
- Not for profit organizations
- Charities
Who is eligible?
- The businesses must have experienced:
- 15% reduction of their gross revenue in March; and/or
- 30% reduction of their gross revenue in April or May.
- For employees hired before March 15, the subsidy will cover the lesser of:
- 75% of the pre-crisis weekly remuneration paid (up to $847 per week); or
- Current weekly remuneration paid (up to $847 per week).
- For new employees (hired after March 15), it will cover 75% of the current remuneration paid (up to $847 per week).
- You will have to pay your employees first and then receive reimbursement. More details to come on how to define pre-crisis weekly remuneration.
- All employers would be expected to at least make their best efforts to top up salaries to 100% and self-attest to their best effort.
- The Government is proposing to expand the CEWS by introducing a new 100% refund for certain employer-paid contributions to EI, CPP, QPP and the Quebec Parental Insurance Plan. This will come on top of the subsidy received and will not be capped.
- This refund would cover 100% of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS.
- You will have to continue to collect and remit employer and employee contributions to each program as usual. You will then apply for a refund at the same time that you apply for the CEWS.
Application: Businesses will be able to apply through the CRA’s My Business Account portal as well as a web-based application. Businesses will have to apply every month.
Details: Detail on the program can be found at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
Temporary Wage Subsidy – “10% Wage Subsidy”
- Canadian-Controlled Private Corporation (incorporated) eligible to the small business deduction or non-profit organizations, registered charities; and
- Have an existing business number & payroll program account with CRA on March 18; and
- Pay salary, wages, bonuses, or other remunerations to an employee.
Eligible period:
- For salaries paid between March 18 to June 20, 2020
- It is a 10% subsidy, so if you have 2 employees that you pay $1,500 each, every two weeks, the subsidy will be $150 * 2 = $300
Over the 90 days period, the limit is $1,375 per employee and $25,000 per employer.
You can reduce your remittance of federal, provincial, or territorial income tax that you send to the CRA by the amount of the subsidy.
You will be able to keep a portion of your employees’ income tax instead of giving it all to CRA
For example, if you have 2 employees for a total bimonthly labour cost of $3,000 and you deduct $700 from their pay for the federal and provincial income tax, you will be able to remit to CRA only $400 and keep the remaining $300 for you as you have a subsidy of $300 (as calculated above)
You cannot, however, reduce your remittance of Canada Pension Plan contributions (CPP) or Employment Insurance (EI) premiums.
Details: Details on the program can be found at: https://www.canada.ca/en/
Business Credit Availability Program (BCAP)
Details: More information can be found at: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html
Canada Emergency Business Account (CEBA)
It is available to Canadian employers with $20,000 to $1.5 million in total payroll in 2019, and operating as of March 1, 2020. This includes smaller (i.e., micro) businesses and other eligible employers such as not-for-profits.
Under CEBA, financial institutions will be able to provide interest-free credit facilities of up to $40,000 to eligible businesses.
If the loan is repaid by December 31, 2022, 25 percent (up to $10,000) will be forgiven.
If the loan is not repaid by December 31, 2022, the remaining balance will be converted to a three-year term loan at 5 percent interest.
Details: More information can be found at: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html
Lending Programs
This program provides credit and cash flow term loans to small and medium-sized enterprises. Canadian businesses in all sectors that were otherwise financially viable and revenue-generating prior to the COVID-19 outbreak are eligible to apply.
Now available at various financial institutions and credit unions
BDC Co-Lending Program for Small and Medium Enterprises
This program provides term loans for operational and liquidity needs of businesses, which could include interest payments on existing debt. Similar to the EDC program, this program is available to businesses that were financially viable and revenue-generating prior to the COVID-19 outbreak.
Application to be made available shortly through financial institutions
Details: More information on both programs can be found at: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html
Private Sector Update
- https://unbounce.com/covid-19-support/
Online Personal Budgeting Webinars: Various online workshops regarding personal finance available - https://www.mymoneycoach.ca/financial-literacy/credit-budgeting-workshop-webinars/webinar-schedule
Thinkific Free Plan: Thinkific offers a full-featured free plan to help you get started moving your content online:
COVID-19-related scams and fraud alters
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Tips on Managing Your Business Throughout the COVID-19 Pandemic
Visit our blog for the latest COVID-19 business tips, information on cash flow, online sales and more.
ACCESS' Adapting & Innovating: Beyond COVID-19 webinars
Our webinar series, Adapting & Innovating Beyond COVID-19, delivers practical information, insight and resources on issues related to financial management and small business entrepreneurship, currently with a specific focus on the challenges and opportunities related to COVID-19.
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