Canada COVID Recovery & Relief Benefits for Businesses

Name of Benefit

Benefit Amount

Eligibility

Other information

Canada Emergency Wage Subsidy(CEWS is available until June 2021)
  • Effective from March 15, 2020.
  • Covering up to 75% of an employee’s wages for qualifying eligible employers
  • Effective Until June 2021
  • Big and small business,
  • Canadian-controlled corporation, non-profit or registered charity, both big and small companies;
  • If company is paying salary, wage, bonuses and other remunerations to an employee. Also if company have a Business number and Payroll program account with CRA
  • Businesses started after Feb 2019, monthly revenues will be compared to a reasonable benchmark
Canada Emergency Rent Subsidy(CERS)
  • Up to 65% of rent and mortgage subsidy.
  • Qualifying businesses, charities and non-profits
  • Businesses should setup an online account with CRA(ZA)
  • Need to follow calculation form provided by CRA (similar CEWS calculation)
Lockdown Support
  • Additional 25% of rent support through the Lockdown Support
  • Effective Until June 2021
  • If your business is temporarily closed due to a public health order issued by federal provincial or municipal government
Extending the Work-Sharing program
  • 76 weeks maximum- an extension to the end date for employment to February 26, 2022
  • Employers affected by Covid-19. (From 38 to 76 weeks)
  • Be in the business in Canada for at least 1 year.
  • Private or Public company , not-for-profit organization or Government Business Enterprises(GBEs)
  • Are able to show that the reduction in work is temporary and uncontrollable and is not a recurring or cyclical slowdown.
  • Employers cannot make a Work-Sharing agreement with seasonal or student or co-op term, on-call or casual hired and shareholders of the business.
Certain Goods Remission Order (COVID-19)
  • Relief on tariffs on certain medical goods
  • Waiving tariffs on essential medical goods: face and eye protection, disinfectants, protective kits and wipes.  to help stop the spread of Covid-19

 

Loan Guarantee and Co-Lending Program for Small and Medium-Sized Enterprises.
Effective June, 2021
  • up to $6.25 million incremental credit amounts
  • Available to SMEs (both exporting and non-exporting companies) through their current financial institution.
  • 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).
  • (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.
Highly affected Sector Credit Availability Program (HASCAP)
  • Low interest (4%) flexible terms (up to 10 years)
    Guaranteed $25,000 to $1 million
    ‘- Combined loan for associated entities up to 6.25 million
  • Financially stable and viable Business prior to the current economic situation.
    Must have received payments either from CEWS or CERS
    the loan will be used to continue or resume operations.
    The loan cannot be used to pay or refinance existing loans.
  • highly-affected several sectors—like tourism, hospitality, arts and culture
Regional Relief and Recovery Fund (RRRF)
Application starting May, 2021
  • Up to $ 1.5 million
  • Businesses and organizations from manufacturing, technology, tourism and other sectors that require additional support to recover from pandemic.
  • Black Entrepreneurship Loan Fund for up to $25,000 to $ 250,000 will be given to black business owners and entrepreneurs.
Mid-Market Financing Program
Effective till June, 2021
  • Commercial Loans up to $12.5 million and $60 million
  • For medium-sized businesses from any sector or industry whose annual revenues exceed about $100 million to $500 million
  • Business Development Canada’s (BDC) and financial institutions to work together to provide this loan.
Canada Emergency Business Account(CEBA)
  • Interest-free, partially forgivable, loans of up to $60,000
  • Small businesses and not-for-profits, that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs, such as rent, utilities, insurance, taxes and wages.
  • A recent expansion in CEBA to include an additional interest-free $20,000 loan, 50% of which would be forgivable if repaid by December 31, 2022.
  • Applications can be submitted through banks and financial institutions till 31st March, 2021.
Relief measures for Indigenous businesses
  • Up to 60,000 an interest-free loan up to $40,000 a non-repayable contribution up to $20,000
  • Small and medium-sized Indigenous businesses
  • Financial support will be provided through Aboriginal Financial Institutions, and administered by the National Aboriginal Capital Corporations Association and the Métis capital corporations in partnership with Indigenous Services Canada.

Additional Provincial programs

ALBERTA

Small and Medium Enterprise Relaunch Grant
  • Up to $20,000 (2 payments)
  • Small and medium-sized job creators impacted by new COVID-19 restrictions.
  • Cooperatives, and non-profit organizations experiencing revenue reduction of about 30% due to Pandemic.
  • Application will remain open until March 31, 2021
  • First payment 15% of pre-COVID-19 monthly revenue up to $5,000
  • Second payment is valued 3 times of the first amount

ONTARIO

Ontario Small Business Support Grant
  • Rebates for PPE, property taxes and energy bills
  • Starting at $10,000 up to $20,000
  • Small businesses having less than 100 employees and experiencing 20% or more revenue reduction.
  • And those who are required to close down.
COVID-19 Energy Assistance Program-Small Business(CEAP-SB)
  • One time up to $850 (heating $425, electricity $425)
  • Small businesses with overdue balances after March 17, 2020
Pension contribution deferral and extension
  • Deferral of pension contributions
  • Employers who are facing hardship to pay for the pension benefit due between October 1, 2020 and March 31, 2021 by March 31, 2021

MANITOBA

Job Restart Program
  • $2,000 over 6 weeks
  • Those who return to work in Manitoba for at least 30 hours per week and stop collecting the CERB or similar federal COVID-19 benefits.
  • for more details visit https://manitoba.ca/covid19/infomanitobans/mjrp.html
Interest and penalty-free payment deferral
  • Interest and penalty free payment deferral to June 30, 2021

Small and medium businesses with monthly retail sale tax (RST) remittances of no more than $10,000 per month

  • The deferral is optional and for the tax payment only, the returns must continue to be filed by the required due date

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