Financial support measures are being rolled out across all levels of government to help businesses through the COVID-19 pandemic and into economic recovery. Below are the measures availble through:
- Canada's COVID-19 Economic Response Plan
- Provincial Economic Recovery Plan: StrongerBC
- Surrey Economic Action and Recovery Plan
Federal Government COVID-19 Response Plan
Avoiding layoffs and rehiring employees
- Canada Emergency Wage Subsidy
Non-publicly-funded employers who have been negatively affected by COVID-19 may qualify to have 75% of their employees' wages covered - up to $847 per week - until December 19, 2020, including redeisnged program details until November 21, 2020. Learn More
- 10% Temporary Wage Subsidy for Employers
The 10% Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA). This is separate from the Canada Emergency Wage Subsidy. Learn More
- Extended Work-Sharing Program
The work-sharing program is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers and has been extended from 38 weeks to 76 weeks for employers affected by COVID-19.
Access to credit
- Business Credit Availability Program
The Business Credit Availability Program (BCAP) supports financing in the private sector through Business Development Bank of Canada (BDC) and Export Development Canada (EDC). This will allow BDC and EDC to provide more than $10 billion of additional support to businesses through coordination of financing and credit insurance solutions for Canadian businesses. These include:
- Loan Guarantee for Small and Medium-Sized Enterprises
Export Development Canada (EDC) is working with financial institutions to guarantee 80% of new operating credit and cash flow term loans of up to $6.25 million.
- Co-Lending Program for Small and Medium-Sized Enterprises
Business Development Canada (BDC) is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Support is available until or before September 30, 2020.
- 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 throught the BCSP and other measures. More details to come.
- EDC's Mid-Market Guarantee and Financing Program
Brings liquidity to companies who tend to have revenues between $50 million to $300 million, to sustain operations during this uncertain period. EDC will continue to work with Canadian 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. These expanded guarantees are available to exporters, internationla investors and businesses that sell their products or services within Canada. More details to come.
- Loan Guarantee for Small and Medium-Sized Enterprises
- Canada Emergency Business Account
Provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. Expanded eligibility now includes owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. Learn More
- Large Employer Emergency Financing Facility (LEEFF)
This program provides 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. The additional liquidity provided through LEEFF allows Canada's largest businesses, their workers and their suppliers to remain active during this difficult time, and position them for a rapid economic recovery. Learn More
- Canada Emergency Commercial Rent Assistance
This program partners with provincial and territorial governments to provide a 75% rent reduction for small businesses that have been affected by COVID-19. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligbille small business tenants who are experiencing financial hardship during April, May, June, July and August. The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants' rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. Learn More
- Regional Relief and Recovery Fund (RRRF)
$962 million has been provided through the Regional Relief and Reocvery Fund (RRRF) to help more businesses and organizations in sectors such as manufacturing, technology, tourism and others that are key to the regions and to local economies. This fund is specifically targeted to those that may require additional help to recover from the COVID-19 pandemic, but have been unable to access existing support measures. Learn More
- Young entrepreneurs
The Federal Government has provided $20.1 million in support for Futurpreneur Canada to continue supporting young entreprenerus across Canada who are facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months. Learn More
Creating new jobs & opportunities for youth
- Student Work Placement Program
The Federal Government has provded $80 million to support up to 20,000 post-secondary students across Canada to obtain paid work experience related to their field of study. Learn More
- Canada Summer Jobs Subsidy
The Federal Government will be offering Canada Summer Jobs employers a subsidy of up to 100% to cover the costs of hiring students. The timeframe for job placement will also be extended until the winter and small businesses will be able to hire students part-time.
- Deferral of Business Filing Taxes
The Canadan Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. Learn More
- Deferral of Sales Tax Remittance and Customs Duty Payments
GST, HST, and duties and taxes owed on imports will be delayed until June 2020. Learn More
Support for self-employed individuals
- Canada Emergency Response Benefit
A taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19. Learn More
- Funding for small and medium-sized Indigenous businesses, and Aboriginal Financial Instituions
$306.8 million in funding to help small and medium-sized Indigenous businesses to access short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions.
AGRICULTURE, AGRI-FOOD, AQUACULTURE, FISHERIES
- Keeping workers in the food supply chain safe
The Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) provides support of $1,500 for each temporary foreign worker, to employers or those working with them to ensure requirements are fully met. The funding is conditional on employers not being found in violation of the mandatory isolation. Learn More
- Increasing credit availability
Farm Credit Canada is able to provide an additional $5 billion in lending to producers, agribusiensses, and food processors. Learn More
- Canadian Seafood Stabilization Fund
The Federal Government has provided $62.5 million in funding to help fish and seafood processing businesses access short-term financing, add storage capacity, comply with new health and safety measures, support new technologies, and adapt products to respond to changing requirements and market demands. More details to come.
CULTURE, HERITAGE AND SPORTS
- COVID-19 Emergency Support Fund
The Federal Government is establishing a $500 million fund for cultural, heritage and sport organizations that will help address the financial needs of affected organizations so they can continue to support artists and athletes. Learn More
- Waiving payments for Part I licence fees
The Canadian Radio-television and Telecommunications Commission (CRTC) will not issue letters requesting payment for Part I licence fees by broadcasters for the 2020–21 fiscal year.
- Deferring payments on commercial leases and licenses of occupation
The Federal Government is working with tourism operators in national parks, historic sites and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020.
Provincial Government BC Economic Recovery Plan
On September 17, 2020, the Province of BC announced StrongerBC, B.C.'s Economic Recovery Plan. The plan focusses on four main areas: better health care, getting people back to work, supporting businesses, and building stronger communities. Below are some of the support measures for businesses:
- New | B.C. Increased Employment Incentive
A refundable tax credit for employers which encourages the creation of new jobs for B.C. workers or increases in payroll for existing low- or medium-income employees. The tax credit is calculated at 15% of the amount that the employer’s qualifying B.C. remuneration exceeds the employer’s base B.C. remuneration. Learn more
- New | 100% PST rebate to buy machines & equipment
The B.C. PST Rebate on Select Machinery and Equipment is a temporary provincial sales tax (PST) program to help corporations recover from the financial impacts of COVID-19. Under this temporary program, corporations can apply to receive an amount equal to the PST they paid between September 17, 2020 and September 30, 2021 on qualifying machinery and equipment. Learn more
- New | Small and medium-sized business recovery grant
Supporting 200,000 jobs in hard hit small and medium-sized businesses with grants up to $30,000. Tourism businesses are eligible for a special top-up to $40,000. More details to come.
- New | Helping B.C. businesses adapt
Helping B.C. businesses build online shops, boost e-commerce operations or increase their digital marketing capacity. More details to come.
- New | Manufacturing critical products
Helping businesses adapt to manufacture critical products needed during the COVID-19 pandemic – like protective equipment and sanitizer. More details to come.
- New | New fund to scale up new B.C. businesses
Launching a new $500 million strategic investment fund — called InBC — to help B.C. businesses scale up. B.C.’s investment. More details to come.
- Tax payment deferral
The following tax filing and payment deadlines have been deferred until Sept. 30, 2020.
- Employer health tax on businesses with a payroll over $500,000. Businesses with a payroll under this threshold are already exempt from the tax.
- Provincial sales tax
- Municipal and regional district tax on short-term accommodation
- Tobacco tax
- Motor fuel tax
- Carbon tax
- School taxes cut in half for business and light- and major-industry property classes
- BC Hydro COVID-19 Relief Fund, where eligible small businesses can have their electricity use charges waived for up to three months
Surrey Economic Action and Recovery Plan
- Extenion on late payment penalties for commercial property tax payments
The City of Surrey has implemented a 90-day extension on late payment penalties for commercial property tax payments. Late payment charges will now come into effecet on October 1, 2020, instead of July 3.
- 50% reduction in many fees relating to development
New and in-stream projects that have a construction value of greater than $25 million will benefit from a 50% reduction of many fees relating to the development.
- Deferral of business licence late payment penalties
Late penalty fees for business licence fees have been deferred and will be applied 30 days after the Provincial State of Emergency comes to an end.