COVID-19: Economic Relief Measures Announced to Date

  • The Canada Emergency Commercial Rent Assistance program (CECRA) will provide forgivable loans to eligible commercial property owners experiencing rent shortfalls because their small business tenants have been heavily impacted by the COVID-19 crisis. To receive the loan, property owners will be required to: i) reduce the rental costs of small business tenants by at least 75% for the months of April, May (retroactive), and June; and ii) commit to a moratorium on evictions for three months. Tenants will still be responsible for up to 25% of the rent.
  • Application documents are now available, and the program will be opened for applications beginning on May 25.
  • For more information, see the Prime Minister of Canada’s news releases of April 24, 2020 and May 20, 2020.[13][14]

Canada Emergency Business Account (CEBA) Loans

  • The government announced a $25 billion program that will provide 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. The program will be implemented by eligible financial institutions in cooperation with EDC.
  • To qualify, small businesses will need to demonstrate they paid between $20,000 and $1,5 million in total payroll in 2019, and operating as of March 1, 2020. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000). If the loan is not repaid by then, the remaining balance will be converted to a three-year term loan at 5 per cent interest.
  • On May 19, 2020, the Government of Canada expanded[15] the eligibility criteria in order to ensure farmers without payroll can now access the CEBA. Applicants with payroll lower than $20,000 will now qualify under the CEBA if they have a business operating account at a participating financial institution, have a CRA business number, have filed a 2018 or 2019 tax return and have non-deferrable expenses between $40,000 and $1.5 million.
  • On June 15, 2020, the Government of Canada announced that as of June 19, 2020[16], applications will be accepted so that more small businesses can access the CEBA such as owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll.
  • This program is now available at various financial institutions and credit unions.
  • For more information, see the Government of Canada news release of March 27, 2020.[17]

Canadian Federal Wage Subsidies

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