Support for Businesses
The Government of Canada is taking action to mitigate the financial impact of Covid-19 on Canadian businesses. If you need help navigating these programs, my office is available to assist you.
The New Canada Emergency Response Benefit
This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.
The Canada Emergency Response Benefit is a taxable benefit of $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. This includes self-employed individuals who would not otherwise be eligible for Employment Insurance.
The Canada Emergency Response Benefit application will be accessible through a secure web portal in early April or by telephone. Read more about it here: https://www.rosemariefalk.ca/covid19_support_for_individuals
The maximum duration of the work-sharing program is being extended from 38 weeks to 76 weeks. This program is designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond their control. It provides income support to employees working a temporarily reduced work week through Employment Insurance Benefits.
Learn more and apply here: https://www.canada.ca/en/employment-social-development/services/work-sharing.html
Wage Subsidies for Small Business
A temporary wage subsidy is available to eligible small business employers allows employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency. This subsidy is equal to 10% of the renumeration paid between March 18, 2020 and June 20, 2020, up to $1,375 per employee to a maximum of $25,000 total per employer.
Of note Canada Pension Plan contributions and Employment Insurance premiums cannot be reduced.
Business Credit Availability Program
A Business Credit Availability Program has been established to provide more than $10 billion of additional support through Business Development Bank of Canada and Export Development Canada. They are working with private sector lenders to find credit solutions for Canadian businesses.
Credit Availability for Farmers
Farm Credit Canada have an additional $5 billion in lending capacity to producers, agribusinesses and food processors.
An Insured Mortgage Purchase Program
The Government of Canada will purchase up to $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation. This will help provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage marker.
Income Tax Flexibility
Canadian Businesses can defer until August 31,2020 the payment of any income tax amounts that become owing on or after March 18 and before September 2020. No interests or penalties will be accrued on these amounts during this period.