Federal Support
Canada Emergency Bank Account (CEBA)
CEBA will provide interest-free loans of up to $40,000 to eligible businesses. To qualify, businesses will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019. Repaying the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000).
The CEBA will be implemented by eligible financial institutions in cooperation with Export Development Canada. More info.
Canada Emergency Wage Subsidy (CEWS) – Applications open April 27 through MyCRA
75% Wage Subsidy:
A 75% wage subsidy on the first $58,700 of employees’ wages for three months, retroactive to March 15, 2020, will be available to qualifying businesses, charities and not-for-profit organizations that have experienced at least a 30% decline in revenue due to COVID-19. This will help businesses to keep and return workers to the payroll.
10% Wage Subsidy:
Organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Details here.
Canada Emergency Response Benefit (CERB)
The Canada Emergency Response Benefit (CERB) provides temporary income support to individuals who have stopped working due to the COVID-19 pandemic. The program provides $500 per week for up to 16 weeks. Applications are managed through the CRA website. More info here.
Expanded Work Sharing Program
The Government of Canada has introduced temporary special measures to extend the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks for businesses affected by a downturn in business due to COVID-19. More info here.
Canada Student Loans
All student loan borrowers will automatically have their loan repayments and interest suspended until September 30, 2020. Students do not need to apply for the repayment pause.
Canada Child Benefit
The Government of Canada is providing up to an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This translates to approximately $550 more for the average family. This benefit will be delivered as part of the scheduled CCB payment in May. More info here.
EI Sickness Benefits
EI Sickness Benefits can provide individuals with up to 15 weeks of financial assistance if they cannot work for medical reasons. Eligible individuals could receive 55 per cent of their earnings up to a maximum of $575 per week. The one-week waiting period for this benefit has been waived during the COVID-19 pandemic for new claimants who are under quarantine. More info here.
Business Credit Availability Program (BCAP)
Several financing options are available under Canada’s new Business Credit Availability Program (BCAP). These include:
Canada Emergency Business Account: Loans of up to $40,000 for small businesses and not-for-profits, interest-free for one year. A portion may be forgivable. Available now through your banking institution – contact them.
Loan Guarantee: Operating credit and cash flow term loans of up to $6.25 million to SMEs. Available mid-April.
Co-Lending Program: Co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program. Available mid-April.
Each of these programs will be administered through your financial institution. Contact them for details on applying.
Loans and Support from the Business Development Bank of Canada (BDC)
Through the $10 billion Federal government Business Credit Availability Program, BDC has made available working capital loans of up to $2 million, postponement of payments and reduced rates on new eligible loans. A new Co-Lending Program will bring BDC together with financial institutions to co-lend term loans to small and medium enterprises for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts up to $6.25 million under this new program. Contact BDC.
Enhanced Financing through Export Development Canada (EDC)
Through the $10 billion Federal government Business Credit Availability Program (BCAP), EDC has enhanced financing and insurance programs to ensure that impacted exporters have access to the credit and support they need. EDC will guarantee new operating credit and cash flow term loans up to $6.5 million that financial institutions extend to small and medium enterprises. Contact EDC.
Financing Products through Farm Credit Canada (FCC)
Through an additional $5 billion received from the Federal government, FCC is offering loan payment deferrals and other financing products to the agriculture and food industry. Contact FFC.
What financing options are banks offering during COVID-19?
It’s recommended to speak to your financial institution to assess your own unique situation and needs. There is likely room for flexibility if any issue you’re facing is particularly challenging.