Financial Assistance: Wage Subsidies, Work-Sharing, Employment Insurance
The federal government continues to announce new industry supports, including the following:
- Deferral of tax payments owing until after August 31, 2020
- Wage Subsidies: The federal government’s temporary wage subsidy program has been expanded to provide 75% of an employee’s regular wage, for up to $847 per employee, per week. Companies experiencing revenue losses of 30% or higher are eligible. There are no limits concerning the number of employees employed by your firm
- Work-Sharing Program: Provides income support to employees eligible for EI benefits to work a temporarily reduced work week. The program has been expanded from 38 weeks to 76 weeks.
- Employment Insurance: Changes to Canada’s sick leave benefits under EI, offering 15 weeks of assistance, amounting to 55% of earnings up to a maximum of $573 per week.
- Canada Emergency Business Account: Provides interest-free loans of up to $40,000 to small businesses, start-ups and non-profits to help cover their operating costs. Firms that paid between $50,000 to $1 million in payroll in 2019 are eligible.
Working Capital Support – Export Development Canada, Business Development Bank of Canada
- Financial Relief for SMEs: EDC and the Bank of Montreal are offering a targeted relief program for SMEs that includes increased lines of credit, advance funds, deferred payments on loans, credit cards and credit lines and one-on-one financial consultations.
- Working Capital Support: Export Development Canada is also offering larger firms guaranteed loans of up to $5M. For more information, contact your bank.
- SME Business Loan and Guarantee Program: BDC and EDC have launched a program allowing banks to offer SMEs additional credit and liquidity options on an immediate basis. BDC is also offering working capital loans of up to $2 million, reduced rates on new eligible loans and flexible repayment terms for existing BDC clients with a loan commitment of less than $1 million.
Deferral of GST/Customs Duties
- Last week the federal government announced that they would defer the payment of taxes and duties on imported goods to June 30, 2020.