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)

Canada Emergency Business Account

  • https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses
  • The Canada Emergency Business Account (CEBA) 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.
  • Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
  • To qualify under the expanded eligibility criteria:
  • CEBA applicants with payroll lower than $20 000 will need:
    • – Business operating account at a participating financial institution;
    • – CRA business number;
    • – 2018 or 2019 tax return; and
    • – Eligible non-deferrable expenses of between $40 000. and $1.5 million
  • 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) provides relief for small businesses experiencing financial hardship due to COVID-19.
  • Over the course of the program, property owners will reduce rent by at least 75 % for the months of April and May (retroactive), and June, for their small business tenants. CECRA will cover 50 % of the rent, with the tenant paying up to 25 % and the property owner forgiving at least 25 %.
  • Apply here: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

 Support for businesses from the Alberta government

How are small businesses impacted by the Alberta Relaunch Plan?

Large Employer Emergency Financing Facility (LEEFF) 

  • The Large Employer Emergency Financing Facility (LEEFF) provides bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.
  • The additional liquidity provided through LEEFF allows Canada’s largest businesses, their workers and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery.
  • This program is delivered by the Canada Development Investment Corporation, in cooperation with Innovation, Science and Economic Development Canada and the Department of Finance.
  • Apply here: https://www.cdev.gc.ca/home-ceefc/

 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 

Launch of Insured 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