business support • COVID 19

The Government of Canada and the private sector are supporting businesses in Canada affected by the COVID-19 pandemic. Additional to nation wide support programs, the Provincial Governments of Canada are also providing support to businesses located within their respective province. The B.C. Government is providing an additional $5 billion in income supports, tax relief and funding for people, businesses and services in response to the COVID-19 pandemic as part of B.C.’s COVID-19 Action Plan.

The listing of support resources may not be comprehensive and is subject to change. Contact support providers listed directly for eligibility and application details. Click on the categories below to view details from the Canadian and B.C. Government Support Services and Resource listing:

ACCESS TO CREDIT

CEBA | Canada Emergency Business Account

CEBA provides interest-free loans of up to $40,000 to eligible small businesses and not-for-profits. To qualify, these organizations need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019. Repaying the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000).

On May 19, 2020, the Federal government announced changes to CEBA eligibility to allow more Canadian small businesses to qualify, including sole-proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll. Interested businesses should work with their current financial institutions.

BCAP | Business Credit Availability Program

The Federal government has established the BCAP to help businesses in all sectors and regions obtain financing during the COVID-19 pandemic. These programs are available at various financial institutions and credit unions.

• Co-Lending Program for Small and Medium-Sized Enterprises: The Business Development Bank of Canada (BDC) is working with financial institutions to co-lend term loans to small and medium enterprises for their operational cash flow requirements. The program offers differing maximum finance amounts based on business revenues. Eligibility has been extended to all legal businesses, including cannabis businesses and those in the hospitality sector operating bars and lounges.
• Loan Guarantee for Small and Medium-Sized Enterprises: Export Development Canada (EDC) is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to small and medium enterprises. Support is available to both exporting and non-exporting companies.
• BDC’s Mid-Market Financing Program: Provides commercial loans ranging between $12.5 million and $60 million to medium-sized businesses whose credit needs exceed what is already available through the BCAP 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 is working with financial institutions to guarantee 75% of new operating credit and cash-flow loans – ranging in size from $16.75 million to a maximum of $80 million to companies with revenues of between $50 million to $300 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.

BC Small and Medium-Sized Business Recovery Grant

The Small and Medium-Sized Business Recovery Grant program will invest up to $300 million in targeted financial support for some of the hardest hit businesses in B.C. that employ between two and 149 B.C. residents and have experienced declines in revenue since March 10, 2020. 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.

CECRA | Canada Emergency Commercial Rent Assistance

CECRA offers forgivable loans to commercial property owners to help reduce rent for the months of April, May, and June 2020 by at least 75% for small business tenants – including non-profit and charitable organizations – who have temporarily ceased operations or experienced at least a 70% drop in pre-COVID-19 revenues. Landlord and tenants accessing this funding must agree to a moratorium on commercial evictions during the months of April, May, and June 2020.

Further details, including landlord and tenant eligibility for the program, are available on the Canada Mortgage and Housing Corporation website. Applications opened May 25, 2020.

Eligible businesses whose landlords choose not to apply for the federal CECRA program will be protected from evictions due to unpaid rent payments through to the end of June 2020, as determined by federal program timelines.

LEEFF | Large Employer Emergency Financing Facility

The LEEFF program will provide 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 during the pandemic. For eligibility details and to apply, visit the Canada Enterprise Emergency Funding Corporation’s website

Support for Specific Industry Sectors

Energy Sector Supports: The Federal government has expanded BCAP to provide credit and financing support for at-risk medium-sized energy companies through BDC and EDC.
Fish and Seafood Sector Supports: The Federal government has established a new Canadian Seafood Stabilization Fund including $62.5 million in assistance to the fish and seafood processing sector. In B.C., the Fund will be delivered through Western Economic Diversification Canada. Additionally, fish harvesters that are ineligible for CEBA may be eligible for the Fish Harvester Grant, which provides non-repayable support of up to $10,000 to self-employed fish harvesters.
Agriculture Sector Supports: The Federal government has announced important measures within agriculture programs and an investment of more than $252 million to support farmers, food businesses, and food processors.
Arts, Culture and Sports Supports: The COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations will provide $500 million to help address the financial needs of affected organiza

FCC | Financing Products through Farm Credit Canada

Through an additional $5 billion received from the Federal government, FCC is offering loan payment deferrals and other financing products to the agriculture and food industry.

Support for Businesses Not Eligible for Federal Support Programs

The Federal government is providing nearly $1 billion to support businesses that have been severely impacted by COVID-19 and are, in some cases, not eligible for other federal support programs. This initiative includes two components:
• Community Futures Emergency Loan Program: Interest-free loans of up to $40,000, with up to $10,000 forgivable if repaid before December 31, 2022, to small and medium size businesses in rural communities. Businesses must be ineligible for other federal support programs such as the CEBA and BCAP, established before March 1, 2020, and be a sole proprietorship, partnership, corporation, social enterprise, or other similar organization. Interested businesses can contact their local Community Futures office to apply.
• Regional Relief and Recovery Fund (RRRF): Interest-free loans up to $1 million are offered through Western Economic Diversification Canada. Sole proprietorships and not-for profits are not eligible for RRRF. Applications are assessed as they are received, with funding subject to availability. Two loan options are available to qualifying businesses:
o Funding requests up to $40,000: Interest-free loans of up to $40,000, with up to $10,000 forgivable if repaid before December 31, 2022, are available to businesses outside of the Community Futures network and ineligible for CEBA; and,
o Funding requests over $40,000: Interest-free loans of up to $1 million, with no scheduled monthly repayments required until after December 31, 2022.

WAGE SUPPORT

CEWS | Canada Emergency Wage Subsidy

Employers whose business has been affected by COVID-19 may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020. This wage subsidy enables businesses to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position them to resume normal operations following the crisis. To check your eligibility, calculate your subsidy amount, and apply, visit the Federal government’s CEWS website.

On May 15, 2020, the Federal government announced that the CEWS program period would be extended to August 29, 2020. The CEWS program is now available to additional groups, including partnerships with one or more non-eligible members, Indigenous government-owned businesses, Registered Canadian Amateur Athletic Associations, registered journalism organizations, and non-public educational and training institutions.

Temporary 10% Wage Subsidy: Organizations that do not qualify for the 75% CEWS may qualify for the previously announced wage subsidy of 10% of remuneration paid from March 18, 2020, to before June 20, 2020, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Canada Summer Jobs Program

Temporary changes to the Canada Summer Jobs program will help employers hire summer staff and provide young Canadians access to the jobs they need during COVID-19. Changes include:
• an increase to the wage subsidy, so that private and public sector employers can also receive up to 100% of the provincial 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

Employment Insurance (EI) Work Sharing Program

For Canadians who lose their jobs or face reduced hours as a result of COVID-19, this program provides EI benefits to workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers. The eligibility of such agreements has been extended to 76 weeks, eligibility requirements have been eased, and the application process has been streamlined.

Temporary Foreign Workers

The Federal government has announced $50 million to help farmers, fish harvesters, and all food production and processing employers put in place the measures necessary to follow the mandatory 14-day isolation period required for everyone arriving from abroad. Employers will receive $1,500 for each temporary foreign worker to ensure that mandatory 14-day isolation period requirements are fully met.

CHANGES TO TAXES

PIVOTING YOUR BUSINESS

RESTARTING YOUR BUSINESS

INTERNATIONAL TRADE