SMALL BUSINESS QUESTIONS

Business Credit Availability Program:

  • The federal government has established a Business Credit Availability Program (BCAP) to provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
  • BDC and EDC are working with private-sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.
  • This program includes:
    • – Loan Guarantee for Small and Medium-Sized Enterprises
      Through the Business Credit Availability Program, Export Development Canada (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).
      This financing support is to be used for operational expenses and is available to both exporting and non-exporting companies.
      Contact your financial institution for more information.
    • – Co-Lending Program for Small and Medium-Sized Enterprises
      Through the Business Credit Availability Program, Business Development Canada (BDC) is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
      The program offers differing maximum finance amounts based on business revenues.
      Financed amount:

      • – 80 % provided by BDC
      • – 20 % provided by your financial institution
      • – This support is available until or before September 30, 2020.
        Contact your financial institution for more information.
  • These programs are now available at various financial institutions and credit unions.
  • Expanding the BCAP 
  • BDC’s Mid-Market Financing Program
    • – BDC’s Mid-Market Financing Program will provide commercial loans ranging between $12.5 million and $60 million to medium-sized businesses whose credit needs exceed what is already available through the Business Credit Availability Program and other measures.
      BDC anticipates that qualifying companies will have annual revenues in excess of approximately $100 million.
    • – More details will be made available soon.

    EDC’s Mid-Market Guarantee and Financing Program

    • – EDC’s Mid-Market Guarantee and Financing Program will bring liquidity to companies that tend to have revenues of between $50 million to $300 million, to sustain operations during this uncertain period. EDC will continue to work with Canadian financial institutions to guarantee 75 percent of new operating credit and cash-flow loans – ranging in size from $16.75 million to a maximum of $80 million. These expanded guarantees are available to exporters, international investors and businesses that sell their products or services within Canada.
    • – More details will be made available soon.

Extending the Federal Work-sharing Program

Canada Emergency Wage Subsidy (CEWS)

The Prime Minister has made further announcements about this program and the information will be updated below as details become available.

  • The Canada Emergency Wage Subsidy (CEWS) supports employers that are hardest hit by the pandemic, and protect the jobs Canadians depend on.
  • The subsidy generally covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.
  • As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020, to August 29, 2020.
  • More information about the announced CEWS extension to August 29 will be coming soon.
  • Employers who are eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan paid in respect of employees who are on leave with pay.
  • For employers that are eligible for both the CEWS and the 10% Temporary Wage Subsidy for a period, any benefit from the Temporary 10% Wage Subsidy for remuneration paid in a specific period will generally reduce the amount available to be claimed under the CEWS in that same period.

Canada Emergency Business Account

  • https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html
  • The new Canada Emergency Business Account 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 their revenues have been temporarily reduced.
  • To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.
  • Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
  • Learn more here: https://ceba-cuec.ca/

More time to pay income taxes

 Canada Emergency Commercial Rent Assistance (CECRA) 

  • Canada Emergency Commercial Rent Assistance (CECRA) for small businesses provides relief for small businesses experiencing financial hardship due to COVID-19. It offers unsecured, forgivable loans to eligible commercial property owners to:
    • – reduce the rent owed by their impacted small business tenants
    • – meet operating expenses on commercial properties
  • Property owners must offer a minimum of a 75% rent reduction for the months of April, May and June 2020.
  • We encourage all eligible commercial property owners to participate in this program.
  • As part of your application, you must provide rent reduction agreement(s) and landlord and tenant attestations.
  • We are taking a staggered approach for applications
  • To manage volume, we will be asking property owners to register on certain days.
  • Apply here: https://cecra-apply.ca/account/login?ReturnUrl=%2F
  • More information here:  https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

Canada Post Emergency Mail Forwarding

 Support for businesses from the Alberta government

How are small businesses impacted by the Alberta Relaunch Plan?

Large Employer Emergency Financing Facility (LEEFF) 

  • Establishing Large Employer Emergency Financing Facility (LEEFF) 

    Canada Development Investment Corporation’s Emergency COVID-19 Mandate

    • – CDEV and CEEFC have been mandated to assist the Government of Canada as part of Canada’s COVID-19 Economic Response Plan.
    • – As a federal Canadian Crown Corporation established to manage investments assigned to it, CDEV has been mandated to implement the Government of Canada’s Large Employer Emergency Financing Facility in cooperation with Innovation, Science and Economic Development Canada (ISED) and the Department of Finance.
    • – This program will provide emergency funding support for large Canadian enterprises facing financial challenges in light of the economic impact of the global COVID-19 pandemic. CEEFC has been formed to administer this mandate.
    • – LEEFF will be open to large Canadian employers who (a) have a significant impact on Canada’s economy, as demonstrated by (i) having significant operations in Canada or (ii) supporting a significant workforce in Canada; (b) can generally demonstrate approximately $300 million or more in annual revenues; and (c) require a minimum loan size of about $60 million.
    • – Broader sectoral dynamics for LEEFF applicants will be considered by Innovation Science and Economic Development Canada. As part of this process, applicants will also be contacted by ISED officials.

    LEEFF Factsheet

    1. Name of business
    2. Headquarters address
    3. Description of business
    4. Business annual revenues (FY2019 results)
    5. Number of employees
    6. Stock exchange symbol (if publicly listed)
    7. Name of contact
    8. Title of contact
    9. Email address of contact (must be from the enterprise’s corporate domain)
    10. Phone number of contact
    • – Only email addresses from the enterprise’s corporate domain will be accepted.

 Regional Relief and Recovery Fund

  • The Fund aims to help western Canadian businesses cope with the financial hardship resulting from COVID-19.

Go to the eligibility criteria for:

or use the quick RRRF Eligibility Assistant here:  https://www.wd-deo.gc.ca/eng/20059.asp 

Additional information for Alberta employees and employers

Launch of Insure Mortgage Purchase Program

Additional information for Alberta employees and employers

EI- Record of employment

  •  https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
  • If your employees are directly affected by the coronavirus (COVID-19) and they are no longer working, you must issue a Record of Employment (ROE).
  • When the employee is sick or quarantined, use code D (Illness or injury) as the reason for separation (block 16). Do not add comments.
  • When the employee is no longer working due to a shortage of work because the business has closed or decreased operations due to coronavirus (COVID-19), use code A (Shortage of work). Do not add comments.
  • When the employee refuses to come to work but is not sick or quarantined, use code E (Quit) or code N (Leave of absence), as appropriate. Avoid adding comments unless absolutely necessary.

Canada Summer Jobs Program: 

  • Canada’s small businesses increasingly depend on the employment of young Canadians. The changes to the Canada Summer Jobs program will help small businesses hire and keep the workers they need so they can continue to deliver essential services.
  • The temporary changes to the program for this year include:
    • – an increase to the wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee
    • – an extension to the end date for employment to February 28, 2021
    • – allowing employers to adapt their projects and job activities to support essential services allowing employers to hire staff on a part-time basis
  • More info:   https://www.canada.ca/en/employment-social-development/services/funding/canada-summer-jobs/temporary-flexibility.html

Lowering the domestic stability buffer

Bank of Canada actions