Corporate Assistance Programs

Canada Emergency Wage Subsidy  (CEWS)

Click here for CRA CEWS FAQ’s

CEWS LATEST UPDATE

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, maximum subsidy of $595 

Fore 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.

Canada Emergency Rent Subsidy (CERS)

[Oct. 9, 2020: Status -  implemented] 

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 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 

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. 

November 2, 2020 - The Government of Québec approves the 12.5% contribution (announced on June 8, 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%.

BDC - Business Development Corporation

March 22, 2021 - announcement of the CEBA application until June 30, 2021. 

On March 22, 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 deadline for the new Canada Emergency Business Account (CEBA) applications is being extended from March 31 to June 30, 2021.

December 4, 2020, CEBA applications under the extended CEBA loan program are open

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.

Canada Emergency Business Account (CEBA)

• Loan up to $60 0000
• A business operating account at a participating financial institution.
• Applicants have until March 31, 2021, to apply for $60 000 loan or the $20 000 expansion.
• A Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
• To qualify, organizations are required to demonstrate that they paid between $20,000 and $1.5 million in total payroll in 2019, based on their 2019 T4SUM Summary of Remuneration Paid.
• Incurred eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable.
• The applicant must have the intention to continue operations.
• To qualify, the applicant must agree to participate in post-funding surveys conducted by the Canadian Government.
• The deadline for an application to the CEBA program is extended to December 31, 2020.
• Available through your primary financial institution (bank).

Application procedure

Business Development Corporation – BDC 

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 $6.25 million
• Commercial interest rate 
• 10-year repayment period 
• Available through your primary financial institution 

Application procedure

Export Development Canada – EDC

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. 

Work Share Program

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

Québec – Emergency Assistance for Small and Medium-Sized Businesses

This program is offered to help small and medium-sized businesses; this is temporary support to help during financial hardship to those who need $50 000 cash or less. 

Eligibility:

• Business in all industry sectors
• Social economy enterprises (Including cooperatives and non-profit organization that are involved in commercial activities)
• Your business is temporarily closed
• Be at a stage of maintaining, consolidating, or relaunching their operations
• Demonstrate the need for financial assistance due to COVID-19

To Apply:

For more information, contact your regional county municipality RCM, your municipal office or the authority that manages the Local Investment fund of your account.

Québec – Aid for businesses in regions of red zone alert (ABRUMA) 

On October 1, 2020, the provincial government of Québec announce the implementation of the Assistance for Business in Regions Under Maximum Alert (ABRUMA) Program. This program is a new component of the previous government programs: PAUPME and the PACTE.

This new program is for businesses that had to follow orders to remain close due to the second wave of COVID-19 in Quebec. ABRUMA will provide non-repayable assistance to companies subject to closure orders that will suffer revenue losses to pay their fixed costs. The maximum amounts covered up to 80% of eligible core operating costs, equivalent to a maximum amount of $15,000/ month of closure.

Eligibility:

• You must be under the Emergency Assistance to Small and Medium-Sized Program
• You must be located in a red zone region
• Be the subject of a Ministerial Order to close for at least 10 days out of the month.
• Loans forgiveness will be granted for the following fixed cost:

• • Municipal and school taxes
  • Rent
  • Interest on a mortgage
  • Utility costs
  • Insurance
  • Telecommunication costs
  • Association fee and licenses

To Apply:

For more information, contact your regional county municipality RCM, your municipal office or the authority that manages the Local Investment fund of your account.

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.

Montréal – Small Business Support Program

This initiative is supported by Québec’s Ministère de l’Économie et de l’Innovation du gouvernement du Québec, which has allocated $40 million to the Montréal agglomeration in the form of a loan to assist small businesses in all sectors of activity.

This assistance is available to all Montréal businesses that are temporarily closed or likely to close as well as those that are trying to maintain or resume their operations during this crisis.

All Montréal companies, including social economy businesses such as co-ops and nonprofits that carry out market activities, can take part in this program.

The money will be distributed through the PME MTL network, Montréal’s business assistance network.

It will take the form of a loan of $50,000 maximum at a 3% interest rate after the six-month moratorium. The city will assume interest fees incurred during the first six months of the loan.

Due to the crisis situation, companies will have a 36-month payback period, excluding the moratorium, to reimburse their loan. Under exceptional circumstances, this payback period can be extended to up to 60 months.

Registration

Montréal companies can find out about terms and conditions on the Emergency Fund page (in French) of the PME MTL Web site. 

Montréal – Small Businesses Assistance (June 8, 2020) 

On June 8, 2020, the Québec government and the Mayor of Montréal announced an additional $50 million of assistance to support Montréal businesses.

Through the Regional Relief and Recovery Fund (RRRF), the federal government plans to grant up to $30 million aid for Montréal businesses that are not eligible for the other federal measures related to COVID-19 that are already in place.

The Québec government is contributing $20 million to the fund for the City of Montréal under the Aide d’urgence aux petites et moyennes entreprises program to come to the assistance of the Montreal SME's facing financial hardship due to COVID-19.

The City of Montréal’s business support network, PME MTL, will administer these funds.

Canadian Bankers Association (CBA) – Mortgage Deferral Plan

The Canadian Bankers Association announced that the six Canadian major banks have introduced programs to offer deferral of mortgage payments.

Customers impacted economically by the COVID-19 can apply for mortgage relief to their respective banks.

A mortgage deferral implies an interruption of payments in this period of time, during which interest which would otherwise be part of the deferred payments is added to the outstanding balance of the mortgage. The added interest is incorporated into the monthly payment, either when payments resume at the end of the deferral period or upon renewal at the end of the mortgage’s term.

For more information directly from the banks, please visit:

• Bank of Montréal (BMO)
• Canadian Imperial Bank of Commerce (CIBC)
• National Bank of Canada (BNC) 
• Scotiabank 
• Royal Bank of Canada (RBC)
• TD Canada Trust

Regional Relief and Recovery Fund (RRFF) 

The government of Canada has invested $1.5 billion to assist financially, organizations in the following sectors: 

• Manufacturing 
• Technology 
• Tourism and others.

This supplemental financial aid is given to organizations that have not been able to access other support measures to recover from this pandemic.

Click here to your Application Procedure.

Program to support Black-led business organizations through the National Ecosystem Fund

The Government of Canada has provided an investment of $53 million to help black-led business organizations across the country. This program provides funding and capital, along with mentoring and financial planning assistance to train entrepreneurs in business management. This is part of the Black Community Entrepreneurship Program.

For more information click here. 

Program supporting Black business owners and entrepreneurs through the Black Entrepreneurship Loan Fund

The Government of Canada has provided an investment of $93 million through the Black Community Entrepreneurship Program. This provides loans to business owners from $25,000 to $250,000.

More details to follow in the coming weeks.

October 20, 2020, Program Canada United Small Business Relief Fund

On October 20, the government of Canada announced this program with the contribution of RBC and Canada United. To help small businesses offset the cost of expenses to reopen safely or adopt technologies to move to an online platform.

The program grants: $5000

Applications are open for the following provinces:

• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
• Nunavut
• Prince Edward Island
• Quebec
• Saskatchewan
• Yukon

For more information about the program and eligibility, click here.

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, these loans are for small and medium-sized enterprises, which have encountered 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, varying by 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. 

[Status: not-implemented] 

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.