With the Canadian government having provided billions in economic relief to businesses so far this year, we thought it would be helpful to go over a few of the programs which are available or were recently updated.
Some of these changes have yet to be approved by parliament.
Canadian Emergency Business Account (CEBA)
Offers interest-free loans for small businesses and not-for-profits.
The Trudeau government recently proposed an expanded Canada Emergency Business Account (CEBA), which would enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic—to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Further details, including the launch date and application process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
Click here for more information on the CEBA program
Canadian Emergency Wage Subsidy (CEWS)
The Canadian Government is covering a portion of an employee's wages for eligible employers. The CEWS will allow you to re-hire your employees and avoid layoffs as the economy continues to safely reopen.
In October 2020. the federal government has proposed an extension of the Canada Emergency Wage Subsidy until June 2021, which would continue to protect jobs by helping businesses keep employees on the payroll and encouraging employers to re-hire their workers. The subsidy would remain at the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020.
Click here for more information on the CEWS program
Canada Emergency Rent Subsidy (CERS)
Designed to replace the Canada Emergency Commercial Rent Assistance (CECRA), a program which had limited uptake from landlords. The new rent subsidy would pick up where the previous program left off, delivering direct, targeted, and accessible rent support to qualifying organizations affected by COVID-19 without the need to work through their landlords. It would provide a subsidy for eligible fixed property expenses, including rent and interest on commercial mortgages.
Subject to approval in upcoming votes, this benefit would provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing support to property owners. The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
Stay tuned for updates on this program as more info becomes available.
Extending the Work-Sharing program
The Federal Government has extended 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.
Click here for more information on the work-sharing program
Extension of lay-off periods
Extended time periods for temporary layoffs by up to six months in the Canada Labour Standards Regulations to allow employers more time to recall laid-off employees. The temporary changes will help protect the jobs of federally regulated private-sector employees and support employers facing economic hardship as a result of the pandemic.
Click here for more information on extended temporary layoffs
BC Only:
Small and Medium Sized Business Recovery Grant
The Small and Medium-Sized Business Recovery Grant program provides fully-funded grants to businesses to ensure they have the support they need during and beyond COVID-19. Now open and receiving applications (Oct 2020) , this program will help businesses with long-term recovery, investing up to $300 million in targeted financial support for some of the hardest hit businesses in B.C.
Grants of $10,000 to $30,000 are available. An additional $5,000 to $10,000 grant is available to eligible tourism-related businesses that have been hit especially hard by COVID-19.
The program runs until March 31, 2021 or until the funds are fully allocated, whichever comes first.
To learn more about the eligibility criteria, Click here for more information on the Small & Medium Business Recovery Grant
Regional Relief and Recovery Fund – Community Futures Stream
This $962-million Government of Canada fund is to support small and medium size businesses that have been negatively impacted by the COVID-19 pandemic. These businesses can now apply for loans of up to $40,000 through RRRF.
As the financing terms of RRRF and Canada Emergency Business Account (CEBA) are similar, rural businesses can choose which program to apply for funding. Applicants can only apply to ONE of these federal programs.
Click here to find out more about the RRRF - Community Futures stream
Find your local Community Futures office
Regional Relief and Recovery Fund
The Regional Relief and Recovery Fund (RRRF) is open to businesses that are not eligible for the Canadian Emergency Business Account (CEBA) program, the “RRRF – Community Futures Stream,” or the “RRRF – Women’s Enterprise Initiative Stream”.