Both the Canada Emergency Business Account and SME Loan and Guarantee program will be administered by private-sector financial institutions.
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Updated: October 18, 2021
CRA Individuals Assistance Programs
Corporate Assistance Programs
Canada Recovery Hiring Program (CRHP)
June 2, 2021 Government Update
On June 2, 2021, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, and the Minister of Small Business, Export Promotion and International Trade, the Honourable Mary Ng, announced that the new Canada Recovery Hiring Program would be available commencing June 6, 2021. This program works similarly to the CEWS program. The government allows the participants to claim the greatest benefit according to the period.
The details about the program are the following:
Eligible employers
- Canadian-controlled private corporations (CCPCs)
- Non-profit organizations
- Registered Charities
- Certain Partnerships
- Must have an open account with the CRA as of March 15, 2020
- Revenues must be decline by 10% or over
Eligible employees
- Not available for furloughed employees
- Must be employed in Canada throughout a qualifying period
Key Elements
- This program is designed similarly to the CEWS program
- Must choose between the CRHP or CEWS for a each claim period
- The application must be filed no later than 180 days after the end of a qualifying period
- The same approach (General or Alternative Approach) as CEWS must be used to calculate revenue decline
- The applicant must meet a decline in revenue test relevant to the periods
The Subsidy Amount
Employers will compare the amount of money they paid to their workers in March, April, May and June of last year with the amount they paid in July, August, September and October of this year. The subsidy rate for the qualifying period is then multiplied to determine the subsidy amount.
- The maximum remuneration is $1 129 per employee
- For a non-arm’s length employee for a week cannot exceed the “baseline remuneration”
The Revenue Decline Threshold
- Period 17: greater than 0%
- Period 18 - 22: greater than 10%
Recovery wage subsidy rates for the Periods 17 to 20:
|
Period 17: June 6 – July 3
|
Period 18: July 4 - July 31
|
Period 19: August 1 - 28
|
Period 20: August 29 - Sept 25
|
Period 21: Sept 26 - October 23
|
Period 22: October 24 - November 20
|
|
| Recovery Wage Subsidy | 50% | 50% | 50% | 40% | 30% | 20% |
For more information click here.
April 19, 2021, Government Update
On April 19, Chrystia Freeland, the federal Minister of Finance, announced the proposed following changes in the Canadian 2021 budget. She announced the introduction of a new program called the New Canada Recovery Hiring Program (CRHP). This new proposed program is an alternative to the CEWS and, to encourage recruitment, certain employers can claim. Key features of the program are:
Eligible employers:
- Canadian-controlled private corporations (CCPCs)
- Individuals
- Non‑profit organizations
- Registered charities
- Certain partnerships.
Duration:
- 6 periods - from June 6 and November 20, 2021
Key elements:
- The incremental remuneration increases at 50 percent in the first three years, which would fall to 40 percent, 30 percent and 20 percent in the last three years.
- Eligible weekly remuneration is limited to $1,129 per eligible employee.
- The CEWS revenue decline test would apply to determine qualification, along with other conditions.
More details to come.
For more information click here.
Canada Emergency Wage Subsidy (CEWS)
June 2, 2021 Update: CEWS and CERS
Based on the Federal Budget of 2021, the Canadian Emergency Wage Subsidy (CEWS), the Canadian Emergency Rent Subsidy (CERS) and the Lockdown Support Program will resume operations from June 6, 2021, to September 25, 2021. The government also has the option to add two other qualifying periods and some changes to the weekly wage subsidy for a furloughed employee.
The new proposed periods:
- Claim Period 21: September 26, 2021, to October 23, 2021
- Claim Period 22: October 24, 2021, to November 20, 2021
Period deadlines:
- Period 11: Dec. 20, 2020 – Jan. 16, 2021 – July 15, 2021
- Period 12: Jan. 17, 2021 – Feb. 13, 2021 – August 12, 2021
- Period 13: Feb. 14, 2021 – Mar. 13, 2021 – September 9, 2021
- Period 14: Mar. 14, 2021 – Apr. 10, 2021 – October 7, 2021
- Period 15: Apr. 11, 2021 – May 8, 2021 – November 4, 2021
- Period 16: May 9, 2021 – June 5, 2021 – December 2, 2021
- Period 17: June 6, 2021 – July 3, 2021 – December 30, 2021
- Period 18: July 4, 2021 – July 31, 2021 – January 27, 2022
- Period 19: Aug. 1, 2021 – Aug. 28, 2021 – February 24, 2022
- Period 20: Aug. 29, 2021 - Sept. 25, 2021 – March 24, 2022
Rate structure of the base subsidy:
|
Period 17: June 6 – July 3 |
Period 18: July 4 - July 31 |
Period 19: August 1 - 28 |
Period 20: August 29 - Sept 25 |
|
| Maximum weekly benefit per employee | Up to $847 | Up to $677 | Up to $452 | Up to $226 |
| 70% and over |
75% (40% base CEWS + 35% top-up) |
60% (35% base CEWS + 25% top-up) | 40% (25% base CEWS + 15% top-up) | 20% (10% base CEWS + 10% top-up) |
| 50% - 70% |
40% + (Revenue drop - 50%) x 1.25
|
35% + 1.25 x (Revenue decline - 50%) |
25% + 0.75 x (Revenue decline - 50%)
|
10% + 0.5 x (Revenue decline - 50%)
|
| 10 - 50% |
0.8 x (Revenue decline) (ex. 30% revenue decline x 0.8 = 24% subsidy rate) |
0.875 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.875= 17.5% subsidy rate) |
0.625 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.625= 12.5% subsidy rate) |
0.25 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.25= 5% subsidy rate) |
| 0 - 10% |
0.8 x (Revenue decline) (ex. 5% revenue decline x 0.8 = 4% subsidy rate)
|
0% |
0% |
0% |
Weekly wage subsidy for a furloughed employees
From June 6 to August 28, 2021, the amount of the remuneration per week:
- $500
- 55% of the pre-crisis remuneration for the employee and a maximum subsidy of $595
The Reference Periods for the Periods 17 to 20 are as follows:
|
Period 17: June 6 – July 3 |
Period 18: July 4 - July 31 |
Period 19: August 1 - 28 |
Period 20: August 29 - Sept 25 |
|
| General approach | June 2021 v.s. June 2019 or May 2021 v.s. May 2019 | July 2021 v.s. July 2019 or June 2021 v.s. June 2019 | August 2021 v.s. August 2019 or July 2021 v.s. July 2019 | September 2021 v.s. September 2019 or August 2021 v.s. August 2019 |
| Alternative approach |
June 2021 or May 2021 over the average of January and February 2020 |
July 2021 or June 2021 over the average of January and February 2020 | August 2021 or July 2021 over the average of January and February 2020 | September 2021 or August 2021 over the average of January and February 2020 |
For more information click here.
April 19, 2021, Government Update
On April 19, Chrystia Freeland, the federal Minister of Finance, announced the proposed following changes in the Canadian 2021 budget. The changes apply to the Canadian Emergency Wage Subsidy (CEWS), Canadian Emergency Rent Subsidy (CERS) and Lockdown Support Program.
The following are:
- Extending the programs to September 25, 2021 (from June 6, 2021)
- Gradually phasing out the rates in the CEWS and CERS programs
- Requiring employers to have a revenue decline of more than 10% to qualify, beginning on July 4, 2021
- Continuing to make the CEWS available for eligible furloughed employees until August 28, 2021
- Adding a business acquisition rule to the CERS, similar to the CEWS rule
The new proposed periods:
- Claim Period 17: (June 6 to July 3, 2021) - maximum CEWS 75%
- Claim Period 18: (July 4 to July 31, 2021) - maximum CEWS 60%
- Claim Period 19: (August 1 to August 28, 2021) maximum CEWS 40%
- Claim Period 20: (August 29 to September 25, 2021) - maximum CEWS 20%
More details to come
For more information click here.
March 3, 2021, Government Update
On March 3, 2021, the government of Canada announces changes to Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy and the Lockdown Support program.
The following changes are:
- Maximum base wage remains 40% and the maximum top-up remains 35%. The maximum combined wage subsidy remains 75%.
- The approaches chosen by employers must remain the same during these periods.
- Revenue Decline reference periods:
-
-
- General Approach - based on 2019 calendar months
- Alternative Approach - the average of January and February 2020
-
- Alternative baseline remuneration computation period form period 14-16
Choice to decide between the following periods:
-
-
- March 1 to June 30, 2019
- July 1 to December 2020
-
- Support for Furlough Employees - Remains the same until June 5, 2021.
The amount of eligible remuneration paid per week:
-
-
- $500
- 55% of pre-crisis remuneration, a maximum subsidy of $595
-
For more information regarding this program click here.
November 2, 2020, CEWS Bill-C9 amendments
On November 2, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, introduced Bill C-9, An Act to Amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)
The intended changes include:
- Application deadlines: The deadline for application is January 31, 2021, and 180 days after the end of the specific period.
- Asset purchase: The asset purchase rule has been extended to cover unlimited acquisitions. Instead of having to acquire all or substantially all of the business property, the condition may be met by acquiring all or substantially all of the property of the seller, which can reasonably be considered necessary for the eligible undertaking to be able to operate a business of the seller or part of a business of the seller as a business.
- Elections: The technical problem preventing elections under these paragraphs after the fourth period has been fixed.
- Amending or revoking elections: A qualified entity may now amend or revoke an election made on or before the date that the application is due for the first qualifying period in respect of which the election is made.
- Eligibility of employees: workers who are mainly employed in Canada, and this requirement is limited to the period in which the person is employed by the eligible institution.
More details to come.
October 14, 2020 CEWS program update
CEWS Update:
- The base subsidy rate for the period for September 27 – October 24, 2020, applies until December 19, 2020. The maximum base subsidy rate is 40% and the minimum top subsidy is 25% for this period.
- The examination of the decreases in revenue for the basic subsidy and the top-up subsidy would be harmonized starting the 27th of September. Instead of using the current three-month test of income decline for top-up subsidies, both the basic and top-up would be determined by changing an eligible employer's monthly income year-over-year for the current or previous calendar month. For employers using the alternative test of income decline, both the basic subsidy and the top-up subsidy would be determined by the change in an eligible employer's monthly income relative to the average of its income in January 2020 and February 2020.
- The “Safe harbour” rule is applied to the program to ensure that the wage subsidy is fairly assessed with the revenue-decline test. This rule applies to an eligible employer to a top-up subsidy rate that is no less than what it would have been given under the three-month revenue decline test. This rule applies from September 27 to December 19, 2020.
- Furloughed employees will be aligned with the EI program. This means that the weekly subsidy for an employee with arm's length (or an employee without arm length who received compensation for the corresponding period before the crisis) would be as follows:
-
- the amount of the eligible compensation paid for the week or if the employee receives compensation of $500/ week and
- 55% of the pre-crisis compensation for the employee, up to a maximum subsidy amount of $573.
- The government will issue a technical background to the expanded wage subsidy, including details of eligibility, and introduce legislation to implement the changes.
October 9, 2020 extension of CEWS program to June 2021
On October 9, 2020, the federal government announced the extension of the CEWS program to June 2021. The proposed changes are:
- The current structure will remain the same for a rate of up to 65% of eligible wages until December 19, 2020.
More details to follow in the coming weeks.
Rate structure of the base subsidy:
| Revenue drop in the current 1-month reference period |
Period 7: August 30 – September 26 |
Period 8 to 10: September 27 – December 19 |
Period 11 to 13: December 20 - March 13 |
Period 14 to 16: March 14 – June 5 |
| Maximum weekly benefit per employee | Up to $847 | Up to $573 | Up to $595 | Up to $595 |
| Revenue drop 50% and over |
75% (50% base CEWS + 25% top-up) |
65% (40% base CEWS + 25% top-up) | 75% (40% base CEWS + 35% top-up) | 75% (40% base CEWS + 35% top-up) |
| 0% to 49% |
1.0 x revenue drop +25% (e.g., 1.0 x 20% revenue drop + 25% = 45% CEWS rate)
|
0.8 x revenue drop+ 25% |
0.8 x revenue drop +0%
|
0.8 x revenue drop +0%
|
Rate structure of the combined base subsidy and the top-up subsidy for Periods 5 and 6*Average revenue drop in the preceding 3 months:
| Revenue drop in the current 1-month reference period | 70% or more | 50% to 69% | 0% to 49% |
| 50% or more | 85% (60% base CEWS + 25% top-up) |
60% + 1.25 x (3 month revenue drop-50%) (e.g., 60% base CEWS + 1.25 x (60% 3 month revenue drop - 50%) = 72.5% CEWS rate)
|
60% (60% base CEWS + 0% top-up) |
| 0% to 49% |
1.2 x revenue drop + 25% (e.g., 1.2 x 20% revenue drop + 25% = 49% CEWS rate) |
1.2 x revenue drop + 1.25 x (3 month revenue drop-50%) (e.g., 1.2 x 20% revenue drop + 1.25 x (60% 3-month revenue drop-50%) = 36.5% CEWS rate)
|
1.2 x revenue drop (e.g., 1.2 x 20% revenue drop = 24% CEWS rate) |
| No revenue drop | 25% (0% base CEWS + 25% top-up) |
1.25 x (3 month revenue drop-50%) (e.g., 1.25 x (60% 3-month revenue drop-50%) = 12.5% CEWS rate)
|
Nil |
June 17, 2020 extension of CEWS program to August 29, 2020.
The government of Canada is providing wage subsidies for a period of three months equal to 75% of the remuneration paid during that period, subject to a number of limits and restrictions. The subsidy is retroactive to March 15, 2020.
Businesses, charities and non-profit organizations whose revenues have decreased by at least 30% because of the COVID-19 pandemic are eligible to apply for the CEWS.
Employers may be eligible for a subsidy of up to 100% of the first 75% of pre-crisis wages of existing employees.
On May 15, 2020, the Canadian government announced that the CEWS program is extended for an additional 12 weeks to August 29, 2020.
The government confirmed that eligibility criteria for month 4 [June 7 to July 4] will remain the same as the first three months.
Further details will be announced for potential changes for months/periods 5 and 6 [July 5, 2020 - August 29, 2020].
On March 18, 2020, the Canadian government introduced a 10% federal wage subsidy for small businesses (the “10% Wage Subsidy”).
The 10% measure is restricted to individuals, registered charities, non-profit organizations and Canadian-controlled private corporations that are eligible for the small business deduction, and partnerships that meet certain criteria.
The program covers 10% of wages paid from March 18, 2020, to June 19, 2020, and up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.
Employers are responsible for manually calculating the 10% subsidy and can claim it by reducing their current payroll remittance of federal, provincial or territorial income tax by the subsidy amount.
Canada Emergency Wage Subsidy (CEWS) [75% wage subsidy]
On April 1, 2020, the Canadian government introduced CEWS to businesses, charities and non-profit organizations that experienced a 30% decrease in revenue due to COVID-19.
Qualifying Criteria
- It will apply at a rate of 75% of the first $58,700 normally earned by employees, representing a benefit of up to $847 per week.
- Employers eligible for the subsidy are required to make their best effort to top-up employees’ salaries to bring them to pre-crisis levels.
- Employers will also obtain a 100% refund of certain employer-paid contributions to EI, the CPP, the QPP, and the QPIP. This refund covers 100% of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. This refund is not subject to the weekly maximum benefit per employee of $847 that an eligible employer may claim.
- The subsidy program will be in place for a 12-week period, from March 15 to June 6, 2020. (extended to Dec 19, 2020).
- There will be no overall limit on the subsidy amount that an eligible employer may claim.
- Eligible employers include individuals, taxable corporations, partnerships consisting of eligible employers, non-profit organizations and registered charities.
- Public bodies are not eligible, including municipalities and local governments, crown corporations, public universities, colleges, schools and hospitals.
- For non-profit organizations and registered charities similarly affected by a loss of revenue, the government announced that it will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances and determine whether additional support is needed.
- The entitlement to the wage subsidy will be based entirely on the salary, wages or other remuneration actually paid to employees.
- Employers will also be eligible for a subsidy of up to 75% of salaries and wages paid to new employees.
- Eligible employers apply for the subsidy through the CRA’s My Business Account portal or a web-based application.
Calculating Revenues
Employers are allowed to calculate their revenues under either the accrual method or the cash method, but not a combination of both.
Eligible employers that experienced a decline in gross revenues of at least:
- 15% in March 2020 (compared to March 2019)
- 30% in April 2020 (compared to April 2019)
- 30% in May 2020 (compared to May 2019)
Eligibility would generally be determined by the change in an eligible employer’s monthly revenues, year-over-year, for the calendar month in which the period began.
Employers are allowed to calculate their change in revenue using an alternative benchmark to determine their eligibility. Under this alternative approach, employers are allowed to compare their revenue using an average of their revenue earned in January and February 2020.
- Employers would select the general year-over-year approach or this alternative approach when first applying for the CEWS and would be required to use the same approach for the entire duration of the program
- Once an eligible employer is found eligible for a specific period, it will automatically qualify for the next period of the CEWS program.
- An employer’s revenue for this purpose will be revenue from the business carried on in Canada earned from arm’s-length sources.
- Revenue will be calculated using the employer’s normal accounting method and will exclude revenues from extraordinary items and amounts on account of capital.
- Special rules for the computation of revenue will be provided to take into account certain non-arm’s length transactions.
- Affiliated groups are allowed to compute revenue on a consolidated basis.
Integration with the 10% Wage Subsidy
Organizations that do not qualify for the CEWS may still qualify for the 10% Wage Subsidy.
In addition, some employers can qualify for both the 10% Wage Subsidy and the CEWS. If that is the case, any amount under the CEWS will be reduced by any 10% subsidies claimed for the same period.
Anti-abuse Warning
The Canadian government warned of “severe” consequences for any party that tries to take advantage of the CEWS and indicated potential penalties for fraudulent claims and the introduction of new offences if an employer provides false or misleading information concerning the program.
In addition, employers will be required to repay amounts paid under the Canada Emergency Wage Subsidy if they are discovered not to meet the eligibility requirements or pay their employees accordingly.
Tax Treatment of CEWS
The usual treatment of tax credits and other benefits provided by the government to employers will apply to the CEWS. Accordingly, the wage subsidy received by an employer will be considered government assistance and will be included in the employer’s taxable income (if the employer is taxable).
How to Apply:
- Most businesses may apply using My Business Account
- If you represent a business, you may apply using Represent a Client
- Alternatively, you may apply using a separate online application form
Assitance line for CEWS questions: 1-833-966-2099
Canada Emergency Rent Subsidy (CERS)
[Oct. 9, 2020: Status - implemented]
Program duration: October 23, 2021.
Based on the Federal Budget of 2021, the Canadian Emergency Wage Subsidy (CEWS), the Canadian Emergency Rent Subsidy (CERS) and the Lockdown Support Program will resume operations from June 6, 2021, to September 25, 2021. The government also has the option to add two other qualifying periods.
The new proposed periods:
- Claim Period 21: September 26, 2021, to October 23, 2021
- Claim Period 22: October 24, 2021, to November 20, 2021
Period deadlines:
- Period 4: Dec. 20, 2020 – Jan. 16, 2021 – July 15, 2021
- Period 5: Jan. 17, 2021 – Feb. 13, 2021 – August 12, 2021
- Period 6: Feb. 14, 2021 – Mar. 13, 2021 – September 9, 2021
- Period 7: Mar. 14, 2021 – Apr. 10, 2021 – October 7, 2021
- Period 8: Apr. 11, 2021 – May 8, 2021 – November 4, 2021
- Period 9: May 9, 2021 – June 5, 2021 – December 2, 2021
- Period 10: June 6, 2021 – July 3, 2021 – December 30, 2021
- Period 11: July 4, 2021 – July 31, 2021 – January 27, 2022
- Period 12: Aug. 1, 2021 – Aug. 28, 2021 – February 24, 2022
- Period 13: Aug. 29, 2021 - Sept. 25, 2021 – March 24, 2022
Rate structure of the base subsidy:
|
Period 17: June 6 – July 3 |
Period 18: July 4 - July 31 |
Period 19: August 1 - 28 |
Period 20: August 29 - Sept 25 |
|
| Maximum weekly benefit per employee | Up to $847 | Up to $677 | Up to $452 | Up to $226 |
| 70% and over |
75% (40% base CEWS + 35% top-up) |
60% (35% base CEWS + 25% top-up) | 40% (25% base CEWS + 15% top-up) | 20% (10% base CEWS + 10% top-up) |
| 50% - 70% |
40% + (Revenue drop -50%) x 1.25
|
35% + 1.25 x (Revenue decline - 50%) |
25% + 0.75 x (Revenue decline - 50%)
|
10% + 0.5 x (Revenue decline - 50%)
|
| 10 - 50% |
0.8 x (Revenue decline) (ex. 30% revenue decline x 0.8 = 24% subsidy rate) |
0.875 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.875= 17.5% subsidy rate) |
0.625 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.625= 12.5% subsidy rate) |
0.25 x (Revenue decline - 10%) (ex. 30% revenue decline x 0.25= 5% subsidy rate) |
| 0 - 10% |
0.8 x (Revenue decline) (ex. 5% revenue decline x 0.8 = 4% subsidy rate)
|
0% |
0% |
0% |
Weekly wage subsidy for a furloughed employees
From June 6 to August 28, 2021, the amount of the remuneration per week:
- $500
- 55% of the pre-crisis remuneration for the employee and a maximum subsidy of $595
The Reference Periods for the Periods 17 to 20 are as follows:
|
Period 17: June 6 – July 3 |
Period 18: July 4 - July 31 |
Period 19: August 1 - 28 |
Period 20: August 29 - Sept 25 |
|
| General approach | June 2021 v.s. June 2019 or May 2021 v.s. May 2019 | July 2021 v.s. July 2019 or June 2021 v.s. June 2019 | August 2021 v.s. August 2019 or July 2021 v.s. July 2019 | September 2021 v.s. September 2019 or August 2021 v.s. August 2019 |
| Alternative approach |
June 2021 or May 2021 over average of January and February 2020 |
July 2021 or June 2021 over average of January and February 2020 | August 2021 or July 2021 over average of January and February 2020 | September 2021 or August 2021 over average of January and February 2020 |
For more information click here.
April 19, 2021, Government Update
On April 19, Chrystia Freeland, the federal Minister of Finance, announced the proposed following changes in the Canadian 2021 budget. The changes apply to the Canadian Emergency Wage Subsidy (CEWS), Canadian Emergency Rent Subsidy (CERS) and Lockdown Support Program.
The following are:
- Extending the programs to September 25, 2021 (from June 6, 2021)
- Gradually phasing out the rates in the CEWS and CERS programs
- Requiring employers to have a revenue decline of more than 10% to qualify, beginning on July 4, 2021
- Continuing to make the CEWS available for eligible furloughed employees until August 28, 2021
- Adding a business acquisition rule to the CERS, similar to the CEWS rule
The new proposed periods:
- Claim Period 17 (June 6 to July 3, 2021) - maximum CERS 65%
- Claim Period 18: (July 4 to July 31, 2021) - maximum CERS 60%
- Claim Period 19: (August 1 to August 28, 2021) - maximum CERS 40%
- Claim Period 20: (August 29 to September 25, 2021) - maximum CERS 20%.
Changes to the Lockdown support program:
- Extension of the current 25% rate for Lockdown Support
- Qualifying periods: 6 June to 25 September 2021.
More details to come.
For more information click here.
March 3, 2021, Government Update
On March 3, 2021, the government of Canada announces changes to Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy and the Lockdown Support program.
The following changes are:
- The maximum rent subsidy remains 65%
- The approaches chosen by employers must remain the same during these periods.
- Lockdown Support - remains at 25% and continues to provide to the rent subsidy program with a rent support up to 90%
- Revenue Decline reference periods:
-
-
- General Approach - based on 2019 calendar months
- Alternative Approach - the average of January and February 2020
-
- Alternative baseline remuneration computation period form period 14-16
Choice to decide between the following periods:
-
-
- March 1 to June 30 2019
- July 1 to December 2020
-
- Support for Furlough Employees - Remains the same until June 5, 2021.
The amount of eligible remuneration paid per week:
-
-
- $500
- 55% of pre-crisis remuneration, maximum subsidy of $595
-
For more information about this programs click here.
Program length: September 27, 2020 – June 2021
The guidelines below are effective Sept 27 – Dec 19 – will be reviewed after
Eligible Entities & criteria
- Individuals
- Taxable corporations
- Trusts
- Non-profit organizations
- Charities
- Partnerships up to 50% owned by non-eligible members
- Have a payroll account on March 15, 2020
- Have a business number Sept 27, 2020
Subsidy
| Revenue Decline | Subsidy |
| 70% or more | 65% |
| 50% - 69% | 40% + (revenue drop - 50% x 1.25) |
| 1%- 49% | Revenue drop x 0.80 |
Revenue calculation
-
A company's income for rent subsidies is the income from its ordinary activities in Canada, which are derived from various sources and are determined by its normal accounting practices. Revenues from extraordinary items and amounts on account of capital are excluded. There is no minimum revenue drop.
-
For registered charities and non-profit organizations, the calculation includes most forms of revenue, excluding revenues from non-arm's length persons. These organizations are allowed to choose whether to include revenue from government sources in the calculation. Once chosen, the same approach should apply throughout the programming period.
-
Specific rules for calculating revenues are foreseen to take account of certain arm-length transactions, for example when a company sells all its production to an affiliate that in turn generates arm-length revenues.
- Affiliated groups that do not normally compute revenue on a consolidated basis may elect to do so.
Reference Periods for revenue drop
| Period | Date | Reference | Alternative |
| Period 8 | Sept 27 - Oct 24, 2020 |
Oct 2020 over Oct 2019 or Sept 2020 vs. Sept 2019
|
Oct 2020 or Sept 2020 over average of Jan & Feb 2020
|
| Period 9 | Oct 25 - Nov 21, 2020 |
Oct 2020 over Oct 2019 or Nov 2020 over Nov 2019
|
Nov 2020 or Oct 2020 over average of Jan & Feb 2020 |
| Period 10 | Nov 22 - Dec 19, 2020 |
Dec 2020 over Dec 2019 or Nov 2020 over Nov 2019
|
Dec 2020 or Nov 2020 over average of Jan & Feb 2020 |
Eligible Expenses
- Per qualifying period limited to $75,000 per location and an overall cap of $300,000 shared among affiliated entities
- Limited to those paid under agreements in writing entered into before October 9, 2020:
-
- Rent
- Property taxes (school and municipal as well)
- Property insurance
- Interest in commercial mortgages
- Interest on a property used to earn rental income from arm’s length entities is not eligible
- Less: sublease revenues
- Excludes sales taxes
- The properties must be located in Canada
- Does not apply to residential properties (taxpayer’s house or cottage)
- Excludes payments made between non-arm’s length entities
The application can be submitted 180 days after the end period.
Lockdown Support
This measure is available to organizations that are subject to a suspension and must suspend or substantially restrict their activities due to a public health order (federal, provincial or municipal level). This includes shutdowns of a location due to a COVID outbreak (as declared by provincial or regional authority).
25 % top-up available to CERS if
- Organization qualified for CERS
- Public health order requires the organization to:
-
- Completely shut down
- Cease some or all activities at the location and, it is reasonable to conclude that the ceased activities were responsible for 25% of the revenues of the organization pre-pandemic
- If a lockdown is for a party of a qualifying period, the lockdown support should be pro-rated for the number of days in the period affected.
- Common examples: restaurants (impacted by indoor dining closures), bars, fitness centers, retail stores (if in-store sales > 25% of online sales), personal services (that cannot be performed while wearing a mask), indoor activities (theathers), COVID 19 outbreaks forced closure in any business.
Entities that are not eligible:
- Reduction in business hours
- Lost revenues from physical distancing requirements (i.e.: can serve people at 25% indoors)
- Loss of revenues due to travel restrictions (e.g.: hotel) where there is no order to cease activities
- Reduction in clients at one time
- Shutdown due to violation of a public health order
For more information about the program click here.
Oct. 9, 2020 - Announcement of the Program CERS
(October 9, 2020) The government of Canada announced a new program with the intent of supporting Canadian tenants and property owners by providing rent and mortgage support until June 2021. This new program is for businesses that incurred a drop in revenues due to COVID-19.
The following framework is proposed for the organizations affected:
- The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 percent of eligible expenses until December 19, 2020.
- Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
- A top-up Canada Emergency Rent Subsidy of 25% for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65% rent subsidy. A total of up to 90% of financial support can be given under this program.
More details to follow in the coming weeks.
The Federal CERCA program was available from May to September 2020.
The government of Québec has approved the contribution of 12.5% as of November 2, 2020. The CMHC will reach out to the landlords that have participated in this program to reimburse them.
On June 8, 2020, to encourage the participation of Québec commercial landlords to participate in the CECRA program, Québec will fund half of the landlord’s 25% contribution under the federal program. Consequently, Québec landlords will receive an amount equal to 12.5% of the total rent from Quebec, reducing their rent reduction from 25% to 12.5%.
| Rent | 100 % |
| Less: Federal loan/subsidy (CERCA) | - 50 % |
| Less: Tenant portion of rent paid | - 25 % |
| Landlords rent reduction | 25 % |
| Less: Québec subsidy | - 12.5 % |
| Net rent reduction for a landlord | 12.5 % |
Business Development Corporation – BDC
Program duration: December 31, 2021.
Two financing programs are available through the BCAP:
1. Canada Emergency Business Account
2. SME Loan and Guarantee Program
Both programs are administered by private-sector financial (banking) institutions.
In order to be eligible, your business must have been impacted directly or indirectly by recent events and have been financially viable prior to the impact of COVID-19.
SME Loan and Guarantee Program
- BDC co-lending (with financial institutions)
- Up to $12.5 million (Co-lending program)
- Commercial interest rate
- 10-year repayment period
- Available through your primary financial institution
Application procedure
Export Development Canada – EDC
Program duration: December 31, 2021.
EDC BCAP Guarantee
Effective March 24, 2020, EDC is supporting all exporting companies by offering their bank a guarantee on loans of up to $6.25 M so that companies can access more cash immediately.
Application procedure
Available through your primary financial institution.
Other EDC Measures
For credit insurance customers, effective immediately EDC will:
Cover losses for goods shipped even if the buyer has not accepted the goods, subject to terms*.
Waive the 60-day waiting period for claims*.
*This does not apply to Domestic coverage.
EDC access instructions:
- New to EDC and seeking more informational call 1-800-229-0575 or click here.
- Current EDC Customers needing working capital and financial solutions should contact their account manager.
- Existing customers needing any assistance with insurance products and online portals should contact 1-866-716-7201 and support@edc.ca.
Program duration: September 24, 2022.
Work-Sharing is a program to avoid lay-offs when there is an uncontrollable temporary decrease in business activity. The program provides EI benefits to eligible employees who agree to reduce their normal working hours.
To be eligible, your business must:
- Be a year-round business in Canada for at least 1 year
- Be a private business, a publicly held company or a not-for-profit organization, and
- Have at least two employees in the work-sharing unit
To be eligible for work-sharing benefits, your employees must:
- Be year-round, permanent, full-time or part-time employees needed to carry out the day-to-day functions of the business ( “core staff”)
- Be eligible to receive EI benefits, and
- Agree to reduce their normal working hours by the same percentage and to share the available work
Investissement Québec (IQ) Supporting Financial Market Liquidity
For more information about Investissement Québec’s support, click here [English].
For more information about Investissement Québec’s support, click here [French].
IQ has introduced the “Programme d’action concertée temporaire pour les entreprises” (PACTE). This new emergency funding measure provides support for businesses affected by the repercussions of COVID-19.
Eligible Businesses
This financial assistance is available to businesses operating in Québec, including cooperatives and other social economy enterprises with commercial activities.
Eligible businesses are those that find themselves in a precarious situation and temporary difficulty as a result of COVID-19. They must show that their financial structure offers realistic prospects for profitability.
Eligible Projects
- Businesses must show that their cash flow issues are temporary and that the liquidity shortage stems from:
- A problem involving the supply of raw materials or products (goods or services)
- An inability, or a substantially decreased ability, to deliver goods, products or services
- Applications will be reviewed on a case-by-case basis, according to the business’s circumstances and Investissement Québec’s management practices.
Eligible Industries
All industries are eligible, except for the following:
- Weapons manufacturing or distribution
- Games of chance and gambling, combat sports, bars, racing, and other similar activities
- Production and sale of tobacco and drugs, along with services related to their use, except for projects involving pharmaceutical-grade products approved by Health Canada and has a DIN, or their ingredients, as well as R&D projects licensed by Health Canada
- Any activity whose main purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, human rights advocacy, etc.)
- Any other activity that may offend public morals
Details of Financial Assistance
- A loan guarantee is the preferred form of financing. Financing can also take the form of a loan from Investissement Québec.
- Investissement Québec aims to work in close cooperation with financial institutions and federal authorities to share risks
- The minimum funding amount is $50,000.
- Refinancing is prohibited.
- This measure is designed to shore up the business’s working capital.
Highly Afffected Sectors Credit Availability Prgoram (HASCAP)
Program duration: December 31, 2021.
January 28, 2020, launch of Highly Affected Sectors Credit Availability Program.
On January 28, the minister of Small Business Mary Ng announced the launch of the Highly Affected Sectors Credit Availability Program (HASCAP). The program is mandated by BDC, which provides loans for small and medium-sized enterprises, which have experienced revenues that decline by 50% or more due to COVID-19.
Eligibility:
- You’re a Canadian Business
- Prior to the current economic situation, your company must have been financially stable and viable.
- Must have received financial aid through the CEWS and CERS programs. With a minimum decline of 50% in at least three months. If your company does not qualify for CEWS and CERS, you may still qualify for HASCAP.
- The loan will be used to continue or resume operations.
- The loan cannot be used to pay or refinance existing debts.
- Minimum risk ratings will apply, depending on the size of the new loan.
- You can apply for each legal entity you own, up to a maximum of $6.25 million (all legal entities combined).
Program Availability: Until June 20, 2021.
For more details about this program, click here.
"Fonds Entrepreneuriat Commercial"
[Status: implemented]
Program duration: December 31, 2021.
This program is intended for Montreal start-ups and growing businesses in the retail sector. It aims to provide support for their establishment and growth as well as e-commerce projects for these businesses. This financial contribution is up to $25,000. This amount must not exceed the total cost of the business project by 25%.
Through:
- Digitalization
- Setting up an online boutique
Eligible companies:
- Retail stores
- Food services
- Drinking Services
Exempted sectors:
- Motor vehicle and parts dealers
- Gas stations
Eligibility requirements
- Canadian or permanent resident
- be majority owned by Canadian citizens or permanent residents of Canada
- be legally constituted as a legal person* and be registered to Registre des entreprises du Québec (REQ)
- have its place of business in Montreal and have its head office in Quebec
- a business plan or an executive summary of the cash flow budget.
- demonstrate that the business adds value to the existing retail offering
- proof of a minimum 20% down payment of the total cost of the project is required, which cannot be less than $5,000
- Certificate of Occupancy for the business
- no government debt for amounts due under tax laws
For more information on the application process, click here.
Business consolidation due to COVID-19
[Status: implemented]
Program duration: December 31, 2021.
This program aims to fund projects to assist street-level businesses that were closed during the COVID-19 pandemic to resume their activities in other digital mediums. This financial contribution is for a maximum of $10,000. This amount is not intended to exceed the total costs of the business project of 75%.
Through:
- Digitalization
- Setting up an online boutique
- Implementing preventive measures by changing the physical layout of the business premises.
Eligible companies:
- Retail stores
- Food services
- Drinking Services
- Personal and laundry services
Exempted sectors:
- Motor vehicle and parts dealers
- Gas stations
- Deathcare services
- Parking lots and garages
Eligibility requirements
- Demonstrate that due to covid-19 the business had to temporarily closed.
- Provide a down payment of 10% of the total cost of the project.
- be legally constituted as a legal person* and be registered to Registre des entreprises du Québec (REQ).
- have its place of business in Montreal and have its head office in Quebec.
- A business plan or executive summary of cash flow budget for 12 months.
- A document explaining the negative impacts of the Covid-19 pandemic on its activities.
- Proof of ownership if the company owns the occupancy.
- If a renter, the copy of the lease for which the remaining term at the time of the contribution is at least two years must be granted.
- Proof of provincial and federal payments of government remittances.
- Proof of capital outlay of at least 10% of the total cost of the project is required.
- Business certificate of occupancy.
For more information on the application process, click here.