Financial Support & Taxes during Covid-19 Pandemic

WBE Canada compiled the following resources to help you cope with the Covid-19 pandemic and its impact on your business.

Financial support

• COVID-19 Regional Relief and Recovery Fund– $675 million to support regional economies, businesses, organizations and communities in regions across Canada and $287 million to support the national network of Community Futures Development Corporations. Available through Regional Development Agencies.
• Federal government – Overview of support for individuals & businesses
• Canada Emergency Wage Subsidy – 3 months program from March 15 to June 6, 2020 for employers who suffer a drop in gross revenues of at least 15 percent in March and 30 percent in April and May, when compared to the same month in 2019. Rate of 75 percent of the first $58,700 normally earned by employees – representing up to $847 per week. Eligibility: employers of all sizes and across all sectors, with the exception of public sector entities. Access wage subsidy calculator here.
• Work-Sharing – Temporary special measures for the forestry and steel & aluminum sector due to COVID-19.
• Canada Emergency Response Benefit (CERB) – available to all Canadians who have stopped working due to COVID-19, whether they are EI-eligible or not. Up to $2,000/month for up to 4 months. There is a zero-income requirement. Not available to employees to quit their job voluntarily. Those who applied for EI benefits before March 15 will need to use all EI benefits before applying for CERB. Click here to apply.
• Canada’s Regional Development Agencies – Support for businesses and organizations
• Canada Emergency Business Account – A loan of up to $40,000. Repayment of the loan before Dec.31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). Available to businesses with $20,000 – $1.5 million in total payroll in 2019. Small businesses and non-profit organizations should contact their financial institution to apply.
• Loan Guarantee for Small and Medium Enterprises – new operating credit and cash flow term loans that financial institutions extend to SMEs. EDC offers a guarantee on loans of up to $5M for companies that need to access more cash immediately – contact your financial institution for more information
• Co-Lending Program for Small and Medium Enterprises – applications for loans and payment deferrals are open through BDC. New BDC Co-Lending Program finalized, will be gradually rolled out by financial institutions as of April 24, 2020. 
• Bank Mortgage Payment Deferrals (for up to 6 months) with Canada’s large banks are available on a case-by-case basis – contact your financial institution
• CMHC Mortgage Payment Deferrals and other mortgage tools – available immediately. Contact Canada Mortgage and Housing Corporation for more information
• Canada Emergency Commercial Rent Assistance (CECRA) for small businesses – The program will provide forgivable loans to qualifying commercial property owners to cover 50 percent of three monthly rent payments that are payable by eligible small business tenants who are experiencing hardship during April, May and June. The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 percent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 percent of the rent. Impacted businesses are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 percent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations. Deadline to apply is August 31, 2020. Applications are now open – apply here.
• COVID-19 Support for culture, heritage and sport sectors
• For more information on financial support for businesses directly from the Canadian banks click here.
• Still not sure what supports are available for your business? Click here.

5. Taxes

• Existing Requirements to Pay (RTPs) – do not need to be remitted or complied by Banks and Employers until further notice
• No deferrals or exemptions on payroll deduction payments and all related activities at this time
• Income tax payment deferrals – for taxes owed between March 18, 2020 and September 2020 – until after August 31, 2020
• Collections activities – suspended until further notice, flexible payment arrangements can be made by (1) contacting your CRA Collections Officer or (2) calling CRA at 1-800-675-6184
• Individual – Payment arrangements are available if you cannot pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full
• Ontario – Relief to businesses filing returns and remitting taxes under Ontario’s business-focused tax program from April 1 to August 31, 2020
• Ontario – Temporarily increase of the Employer Health Tax payroll exemption amount from $490,000 to $1 million for the 2020 tax year

This post was last updated July 24, 2020