Federal Supports

Federal Supports

The Government of Canada has a number of programs in place for businesses in response to the COVID-19 outbreak.

Program

Description

Link

Canada Emergency Business Account

Provides interest-free loans of up to $40,000 to small businesses and not-for-profits through their financial institutions. Up to 25% of the loan will be forgiven if repaid by December 31, 2022. More details to follow.

https://www.canada.ca/en/department-finance/news/2020/03/additional-support-for-canadian-businesses-from-the-economic-impact-of-covid-19.html

"Now Open"

The Canada Emergency Wage Subsidy

Provides 75% wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy are eligible. This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.

https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

Extending the Work-Sharing program

The maximum duration of the Work-Sharing program is extended from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.

https://www.canada.ca/en/employment-social-development/services/work-sharing/eligibility.html

Business Credit Availability Program

(BCAP)

The BCAP provides $65 billion of 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.

https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html

Deferral of Income Tax

Allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as installments.  No interest or penalties will accumulate on these amounts during this period.

 

Deferral of Sales Tax Remittance and Customs Duty Payments

Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owing on their imports. Deferred until June 30, 2020

The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers; the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.

For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.

These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of this month.

https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html#def_gst_rem

Credit Support for Farmers

Allowing an additional $5 billion in lending capacity to producers, agribusinesses, and food processors through Farm Credit Canada. This will offer increased flexibility to farmers who face cash flow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.

 

Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses

The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak.

On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses.

https://www.canada.ca/en/department-finance/economic-response-plan.html