The COVID-19 crisis had had significant impacts on businesses across Canada: From storefronts having to temporarily close due to physical distancing to public corporations who have seen a decline in share prices due to the economic fallout.
The federal government has recognized the toll this has already taken and is continuing to roll out subsidies, programs and support measures to help organizations who have come under pressure. To make sure you’re fully aware of what’s available and whether you qualify, we’ve summarized the most relevant benefits below.
Eligible employers may receive a three-month subsidy equal to 75 percent of wages, backdated to March 15. Eligible businesses must have experienced a revenue decline of at least 30 percent due to COVID-19.
The subsidy applies to a salary of up to $58,700, which translates to a maximum subsidy of $847 per week. Eligible employers include corporations, non-profit organizations and charities — and there is no limit to the number of employees.
Banks may provide up to $40,000 in
government-backed loans to small businesses and non-profit organizations, with no interest for a year. These are intended to help cover operating costs due to a temporary reduction in business revenues. Up to $10,000 will be forgiven if companies are able to repay their loan by the end of 2022.
Qualifying organizations will need to demonstrate they paid between $20,000 and $1.5 million in total payroll in 2019. Businesses can apply for CEBA through their banks or credit unions.
The federal government has established the BCAP to support private sector financing through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
The government will allow all businesses, including self employed individuals, to defer payment of sales tax (GST, HST) and import duties until June 2020.
All businesses may defer the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020 until August 31, 2020.
More information: Department of Finance-Tax Filing Flexibility
Canadians can now apply for the
CERB if they earn $1,000 or less per month, have recently exhausted employment insurance benefits — or are part-time, seasonal, or contract workers.
Additional changes have been made to the Canada Emergency Wage Subsidy program, including:
This program will help businesses cover rent from April through June and will be delivered in partnership with provinces.
Changes to the Canada Summer Jobs Program will allow employers to keep their employees on the payroll and hire younger Canadians this summer.
The Government of Canada announced welcomed support for these two struggling industries, with more details forthcoming. As of right now, these sectors will receive:
If you’re concerned your business will not be able to weather the economic impacts of the COVID-19 pandemic — even after taking advantage of the federal support measures outlined above — you may have options that will allow you to avoid closing your operations.
With Licenced Insolvency Trustees across the country who specialise in corporate recovery and restructuring, MNP can consult with you about the available options to address financial difficulties and assist in preparing forecasts. These may include provisions under the
Bankruptcy and Insolvency Act and
Companies’ Creditors Arrangement Act (CCAA).
Contact a member of our team today to find out if a Formal Restructuring is right for your business.
Based out of Vancouver, Grant Bazian is a Licensed Insolvency Trustee and President of MNP LTD. To learn more about how MNP Debt can help, contact our local office at 778.374.2108 or toll-free at 310.DEBT (310.3328).
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