COVID-19 & Your Business

This resource page contains all the information on business supports announced by the Federal, Provincial and Municipal levels of Government. We’ve provided details and access to links below.

Please check back frequently as we will continue to provide updates as they become available. In the meantime, please send us your questions and let us know how else we can support you.

Federal Update

April 1 Update:

The Federal Government has taken a number of measures to assist businesses deal with the impact of COVID-19: totaling around $107 billion and up to 5% of GDP.

Canada Emergency Wage Subsidy

The subsidy covers 75% of salary up to the first $58,700 earned by an employee to a maximum of $847 a week. It will be paid retroactively to March 15th.
The subsidy applies to companies of all sizes with employee numbers not an eligibility factor. Not-for-profits/charities are included.
Businesses who have seen at least a 30% decrease in gross revenue since the same time last year due to COVID-19 are eligible. (Comparison will be made on gross revenues from March, April and May last year and companies will need to reapply each month.)
This system is designed to be flexible as the government recognizes it will be difficult for businesses to show this difference. Further details will be provided in the coming days.
Businesses will need to attest that they are doing what they can to pay the other 25% of salaries for employees.
The government has advised that companies should rehire employees if possible.
Applications can be made through the CRA website, with the portal and fund payments being ready in 3-6 weeks.
The payout will then be made to a direct deposit system, which is already used by 50% of companies in Canada.

Business Credit Availability Program

The Canadian Government has used the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide $65 billion of additional funding to businesses.

The program includes:

Canada Emergency Business Account

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits,
To qualify, these organizations need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

Loan Guarantee for Small and Medium-Sized Enterprises

EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.

Co-Lending Program for Small and Medium-Sized Enterprises

BDC is working with financial institutions to 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.

These programs will be available three weeks after March 27, and interested businesses should work with their current financial institutions.

The Business Development Bank (BDC) can assist small businesses and entrepreneurs with these three options. You can either reach them at their financing request page or through their toll-free contact number at 1-877-232-2269 (Monday to Friday, from 7:30 a.m. to 8:00 p.m. Saturday and Sunday from 9:00 a.m. to 5:00 p.m.).

The Export Development Canada is designed to assist exporting companies with relief options. Email tradeadvisor-conseiller@edc.ca, call 1-800-229-0575 between 9 a.m. and 5 p.m. ET, or submit an inquiry online.

Employment Insurance

The Government of Canada has announced a monthly Canada Emergency Benefit. The Canada Emergency Response Benefit (CERB) is a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit. It is a taxable benefit:

· That provides $2,000 a month, for up to four months, for workers who lose their income as a result of the COVID-19 pandemic.

· This program is specifically aimed at workers who would not normally be eligible for EI.

· It covers Canadians who have lost their jobs, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. This also applies to self-employed workers.

Visit the government website to learn more about CERB.

Tax Assistance

Deferral of Sales Tax Remittance and Customs Duty Payments

Businesses, including self-employed individuals, can now defer the following until June 30, 2020:

· Payments of the Goods and Services Tax/Harmonized Sales Tax (GST/HST)

· Customs duties owing on their imports.

· The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers;

· The January 1, 2020 through March 31, 2020 reporting period for quarterly filers;

· For annual filers, the amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.

· For GST and customs duty payments for imported goods, the deferral will include amounts owing for March, April, and May.

Deadline Extensions

· The 2020 tax deadline has been extended to June 1st, 2020.

· Payment deadline for those who owe taxes has been deferred until after August 31, 2020.

The Government of Canada has launched a dedicated page for Canadian businesses to provide them with the information and resources to navigate the challenges of COVID19 which can be accessed here.

Provincial Update

April 1, 2020

The Government of Ontario has released their 2020 Action Plan responding to COVID-19. Some of these benefits include:

· Setting electricity prices for small business time-of-use customers at the off-peak price, 24 hours a day for 45 days.

· Cutting taxes for employers through a temporary increase to the Employer Health Tax (EHT) exemption.

· Introduction of the Regional Opportunities Investment Tax Credit, a new corporate income tax which will support regions lagging in employment growth.

· Providing five months of interest and penalty relief for businesses to file and make payments for the majority of provincially administered taxes.

· Deferring the upcoming June 30 quarterly municipal remittance of education property tax to school boards by 90 days. This will allow municipalities flexibility to provide property tax deferrals to residents and businesses.

READ THE PROVINCIAL ACTION PLAN

ADDITIONAL RESOURCES:

An Employer's Guide to COVID-19 & The Workplace

COVID-19 is forcing many Ontario businesses to consider work-from-home strategies, paid and unpaid time off for their employees, and even short term closures. As an employer, what do you need to know about COVID-19, and what are your responsibilities for keeping your workplace safe and your employees healthy?

Our advocacy partner, Minken Employment Lawyers, is making their report, an Employer’s Guide to Covid-19 & the Workplace available. Click the link to download it.

SE Telecom Assistance:

Chamber member SE Telecom is offering free disaster relief by providing their Clear Clouds business phone system to local businesses with free service until June 1, 2021, with no upfront cost or commitment. More details here.

Topping Up EI Benefits

Looking to top up EI for your employees? This guide from Chaggares & Bonhomme Chartered Professional Accountants explains how to do it. Access it HERE