Government Support Relief for COVID-19

July 08, 2020

While COVID-19 continues to impact the world, many businesses and people are looking for support to help them through the crisis. As the situation continues to change, it can be difficult to keep track of all the programs and decide which one is most appropriate for you. This infographic will help guide you through the various programs.

Support for businesses – Federal

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Benefit

  • Subsidy will be equal to a maximum of 10% of remuneration paid during the eligible period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
  • Allows eligible employers to reduce payroll deductions (income tax amounts only) required to be remitted to CRA. It is not a payment to employers.
  • Assistance received will be taxable to the recipient employer and will reduce the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration.
  • If eligible for both the 75% CEWS and the 10% TWS, the amount paid under the 75% CEWS amount must be reduced by an amount credited under the 10% TWS in respect of remuneration paid in the same time period.

Who should apply?

  • Employers looking to increase cash flow by reducing the amount of income tax they must remit to the government for payroll.

Eligibility

  • An eligible employer can be an eligible CCPC, an individual (other than a trust), a partnership (all of the members of which are individuals, eligible CCPCs, registered charities or other eligible partnerships), a not-for-profit, or a registered charity.
  • Businesses must have had an existing business number and payroll account with the CRA on March 18, 2020. This means that it will not be possible for a new corporation to be established, or an existing corporation to apply for a payroll account after March 18, 2020 to take advantage of this subsidy.
  • The eligibility of a CCPC to claim the 10% TWS is directly linked to the business limit claimed in the previous year. A CCPC must have a business limit of more than nil for the last taxation year that ended before March 18, 2020. If the CCPC does not have a taxation year that ended before March 18, 2020, this condition is to be applied as if its taxation year ended immediately before March 18, 2020.
  • The eligibility of a CCPC will depend on whether the taxable capital of an associated group of which it is a member is less than $15 million, and whether the CCPC had a small business limit in the previous year. Associated CCPCs will not be required to share the maximum 10% TWS of $25,000 per employer.

Timeline

  • The eligible period begins on March 18, 2020 and ends on June 19, 2020.
  • With the release of the regulations to support the TWS on May 15, 2020, and clarifying comments in the updated FAQs for the CEWS on May 19, 2020, one key aspect of the TWS program was changed. It is now possible for employers to elect the wage subsidy rate to be 10% or a lower percentage.

Useful links

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Benefit

  • Subsidy of 75% of the first $58,700 of eligible remuneration normally paid to employees, up to max of $847 per week, per employee. Keeping in mind the per-employee limits, there will be no overall limit on the subsidy amount that an eligible employer may claim.
  • It is proposed that a second base-line remuneration period be added for measuring average weekly remuneration in the period from March 1 - May 31, 2019. This will benefit seasonal workers and those without baseline remuneration in the period January 1 – March 15, 2020.
  • Note that the determination of the amount of the subsidy will take into account pre-crisis weekly remuneration. The pre-crisis remuneration for a given employee would be based on the average weekly remuneration paid between January 1 and March 15 inclusively, excluding any seven-day periods in respect of which the employee did not receive remuneration.
  • A 100% refund will be available for certain employer-paid contributions to EI, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. Where the employer is eligible to claim the 75% CEWS for an eligible employee, this refund will cover the full amount of employer-paid contributions for the employee for each week throughout which the employee is on leave with pay. There will be no overall limit on the refund amount that an eligible employer may claim. Note that the refund of employer contributions to these plans is only available in respect of employees on leave only.
  • Assistance received will be taxable to the recipient employer and will reduce the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration. If eligible for both the 75% CEWS and the 10% TWS, the amount paid under the 75% CEWS amount will generally be reduced by amount paid under the 10% TWS in respect of remuneration paid in the same time period.
  • On May 15, the government announced regulations to extend the CEWS to the following groups:
    • Partnerships that are up to 50% owned by non-eligible members;
    • Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers;
    • Registered Canadian Amateur Athletic Associations;
    • Registered Journalism Organizations; and
    • Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.

Who should apply?

  • Employers that have had a downturn in gross revenues due to COVID-19 and need support to avoid laying off or looking to hire back employees.

Eligibility

  • Eligible employers will be able to access the subsidy if they have suffered a drop in gross revenues of at least 15% in March 2020, 30% in April 2020, 30% in May of 2020, and/or 30% in June 2020. Rates of decline for revenues in July and August 2020 will be announced.
  • Eligible employers will include: individuals, taxable corporations, partnerships consisting of eligible employers, taxable corporations, NPOs and registered charities.
  • Public sector entities, such as governments, schools, and hospitals, are not eligible for the CEWS.
  • Two benchmarks are being provided to measure the revenue decline. First, as a general year-over-year approach, the revenue decline can be measured by comparing the applicable month in 2020 to the same month in 2019. For example, comparing March 2020 to March 2019. Alternatively, the revenue of the applicable month in 2020 can be compared to the average of January and February 2020 revenue.
  • Specific rules are provided in the legislation with respect to the computation of the employer's qualifying revenue.
  • Eligibility for the CEWS of an employee's remuneration will be limited to employees that have not been without remuneration for more than 14 consecutive days in the eligibility period, i.e., from March 15 to April 11, from April 12 to May 9, and from May 10 to June 6.
  • Entitlement to this subsidy will be based entirely on the salary or wages actually paid to employees. Therefore, employers will need to pay the salary or wages to their employees, and if eligible, will be repaid for those salaries or wages by the government through this subsidy program.
  • Eligible employers will have to re-apply for the subsidy each month and attest to the decline in revenue when they apply.
  • Eligible employers will be able to access the subsidy by applying through the CRA's My Business Account portal as well as a web-based application.
  • The CEWS program opened for applications on April 27.
  • All employers will be expected to at least make best efforts to top up salaries to pre-crisis levels.
  • On May 15, the government indicated that proposed amendments will be forthcoming to: provide flexibility for employers of existing employees who were not regularly employed in early 2020 (such as seasonal employees); ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations; and better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility.
  • Draft legislation tabled June 10 proposes to allow eligible entities using a payroll service provider to access the wage subsidy under defined conditions. Such access will not be allowed until such time as the proposed changes become law.

Timeline

  • Originally, the program was to be in place for a 12-week period, from March 15 to June 6, 2020. However, on May 15, 2020, the Prime Minister announced a three-month extension of the program to August 29, 2020.

Useful links

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Benefit

  • Open to large for-profit businesses – with the exception of those in the financial sector – as well as certain not-for-profit businesses, such as airports, with annual revenues generally in the order of $300 million or higher.
  • Delivered by the Canada Development Investment Corporation (CDEV), in cooperation with Innovation, Science and Economic Development Canada (ISED) and the Department of Finance.
  • Program provides bridge financing to Canada's largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.
  • The LEEFF program will use key guiding principles in providing support including protections of taxpayers and workers, fairness and timeliness.

Who should apply?

  • Eligible businesses that are seeking financing of about $60 million or more, have significant operations or workforce in Canada, and not involved in active insolvency proceedings.

Eligibility

  • Companies seeking support must demonstrate how they intend to preserve employment and maintain investment activities.
  • Recipients will need to commit to respect collective bargaining agreements and protect workers' pensions.
  • The LEEFF program will require strict limits to dividends, share buy-backs, and executive pay.

Timeline

  • Applications for this program opened on May 20.

Useful links

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Benefit

  • The BCAP will support access to financing for Canadian businesses in all sectors and regions.
  • The BCAP the EDC and the BDC will provide $65 billion in direct lending and other types of financial support at market rates to businesses with viable business models whose access to financing would otherwise be restricted.
  • BCAP includes the following programs (see details of programs below):
    • Canada Emergency Business Account (CEBA).
    • Loan Guarantee for Small and Medium Size Businesses (i.e. Guarantees on Loans for SMEs and Co-lending Program for SME's).
  • By working in close cooperation with financial institutions, this program will fill gaps in market access and leverage additional lending by private sector institutions.
  • The government announced on May 11, 2020 that the BCAP will extended to mid-sized companies with larger financing needs. Support for mid-market businesses will include loans of up to $60 million per company, and guarantees of up to $80 million.

Who should apply?

  • Eligible businesses.

Timeline

  • Currently available and taking applications. Contact financial institution/BDC Advisor.

Useful links

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Benefit

  • This $25 billion program 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.
  • Applications should be made on-line at a financial institution.

Who should apply?

  • Small businesses and NPO's that need help covering operating costs.

Eligibility

  • To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.
  • On May 19, an extension of the eligibility criteria for the CEBA was announced to include many owner-operated small businesses. To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:
    • a business operating account at a participating financial institution
    • a CRA business number, and to have filed a 2018 or 2019 tax return
    • eligible non-deferrable expenses between $40,000 and $1.5 million.
  • Eligible non-deferrable expenses categories include:
    • Wages and other employment expenses to independent (arm's length) third parties;
    • Rent or lease payments for real estate used for business purposes;
    • Rent or lease payments for capital equipment used for business purposes;
    • Payments incurred for insurance related costs;
    • Payments incurred for property taxes;
    • Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
    • Payments for regularly scheduled debt service;
    • Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
  • Businesses with payroll lower than $20,000 are able to apply under the expanded eligibility rules starting on June 26, 2020. The expanded CEBA is being made available gradually by more than 230 financial institutions across the country, starting with the larger banks. Other participating financial institutions will start offering the program over the coming weeks.
  • Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions.

Timeline

  • Repaying the balance of the loan on or before Dec 31, 2022 will result in loan forgiveness of 25% (up to $10,000).
  • Enrollments became available the week of April 6th.

Useful links

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Benefit

  • EDC will guarantee new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million.
  • Program cap is a total of $20 billion.

Who should apply?

  • Export and domestic companies that need access to financing.

Eligibility

  • Details on application and qualifications are still to follow, however these funds will be made available through the applicant's primary financial institution.

Useful links

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Benefit

  • The BDC, together with financial institutions, will co-lend term loans to SMEs for their operational cash flow requirements.
  • Eligible businesses may obtain incremental credit amounts up to $6.25 million.
  • BDC's portion of this program is up to $5 million maximum per loan.
  • The potential for lending for this program will be $20 billion.

Who should apply?

  • Eligible businesses.

Eligibility

  • Eligible financial institutions will conduct the underwriting and manage the interface with their customers.
  • Details on application and qualifications are still to follow, however these funds will be made available through the applicant's primary financial institution.

Useful links

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Benefit

  • Work sharing is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer.
  • The program provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers.

Who should apply?

  • Work-Sharing is a three-party agreement involving employers, employees and Service Canada.
  • Employees on a Work-Sharing agreement must agree to a reduced schedule of work and to share the available work over a specified period of time.

Eligibility

  • The employer and the employees (and the union, if applicable) must agree to participate in a Work-Sharing agreement and must apply together.

Timeline

  • Reduction in hours by employee can be from half day to 3 days.
  • Maximum duration is 76 weeks, minimum duration is 6 weeks.
  • An application for a Work-Sharing agreement must be submitted a minimum of 10 days prior to the requested start date.

Useful links

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Benefit

  • This program will lower rent by 75% for small businesses that have been affected by COVID-19.
  • The program will provide forgivable loans to qualifying commercial property owners to cover up to 50% of gross rent for April, May, and June 2020 rent payments payable by eligible small business tenants experiencing financial hardship as a direct result of COVID-19.
  • The loans will be forgiven on December 31, 2020, if the property owner fulfills all applicable program terms and conditions, including compliance with the rent reduction agreement and ensuring that all attestations and supporting documentation submitted with the application is accurate and truthful. If the property owner files for bankruptcy, restructures, reorganizes or dissolves their business then loans will be need to be repaid.
  • CECRA for small businesses is administered undifferentiated for properties with mortgages, other forms of debt or no mortgages at all.
  • The small business tenant would be required to cover the remainder of the gross rent payments, up to a maximum of 25%.
  • The federal government has indicated that it has reached an agreement in principle with the provinces and territories to support the CECRA.
  • The federal government and the provincial and territorial governments have agreed to divide the 50% of the rent covered by the CECRA equally between them.
  • On June 29, the federal government announced its intention to extend the CECRA program by one month through the end of July 2020.
  • Those who qualified for the program based on existing parameters for April, May and June are eligible for the July extension. Participation in the July extension is voluntary.
  • New applicants are able to apply for the July rate reduction as well.
  • If a business had an average revenue decline of 70% or more in April, May and June, they are deemed eligible for the additional month of rent relief. However, not all tenants in the original application need to be included for the July extension.
  • CMHC will be accepting applications until August 31, 2020, however property owners who have already applied for the program will have until September 14, 2020 to apply for the July extension.
  • Sales taxes are excluded from determining the gross rent amount. The monthly rent amounts are before applicable sales taxes.
  • The forgivable loan amount (for property owners) is exempt from GST/HST.
  • Property owners are not required to collect GST/HST with respect to payments that they have received from CMHC under the CECRA for small businesses program.

Who should apply?

  • Qualifying commercial property owners with eligible small business tenants requiring assistance with commercial rents for April, May, June and July 2020.

Eligibility

  • The CECRA for small businesses is applicable to commercial property owners with commercial real property. Commercial real property is defined as a commercial property with small business tenants. Commercial properties with a residential component and multi-unit residential mixed-use properties would equally be eligible with respect to their small business tenants.
  • A commercial property owners that is and is controlled by an individual holding federal or provincial political office is not eligible.
  • On May 19, the government announced the CECRA for small businesses doesn't apply to any properties owned by the federal, provincial, or municipal governments. There are certain exceptions noted by CMHC.
  • Small businesses that opened on or after March 1, 2020 are not eligible for the CECRA.
  • Property owners will need to complete specific documentation that includes attestations and agreements to support their application in order to be eligible for the program.
  • Eligible small business tenants who are in sub-tenancy arrangements are also eligible, if these lease structures meet program criteria.

Timeline

  • Canada Mortgage and Housing Corporation (CMHC) will administer the CECRA to small businesses. CMHC has engaged MCAP and First Canadian Title (FCT) to deliver CECRA for small businesses. Applicants may be contacted either MCAP or FCT throughout the applicant validation and funding processes.

Useful links

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Benefit

  • The program provides wage subsidies to employers such as not-for-profit organizations, the public-sector, and private sector organizations with 50 or fewer full-time employees, to create quality summer work experiences for young people aged 15 to 30 years.
  • Not-for-profit employers are eligible to receive funding for up to 100% of the provincial or territorial minimum hourly wage. Public and private sector employers are eligible to receive funding for up to 50% of the provincial or territorial minimum hourly wage.
  • Temporary changes have been made to the program to allow employers to:
    • Increase the wage subsidy for this year only so that private and public sector employers can also receive up to 100% of the provincial or territorial minimum hourly wage for each employee;
    • Adapt their projects and job activities;
    • Hire staff on a part-time basis.

Who should apply?

  • Employers participating in the Canada Summer Jobs Program for 2020 (application deadline was February 28, 2020).

Timeline

  • Temporary changes have been made to the program to allow employers to:
    • Extend the end date for employment to February 28, 2021 (from August 31, 2020);

Useful links

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Benefit

  • Deferral of the corporate income tax filing deadline and balance owing.

Timeline

  • The filing deadline for all businesses with T2 corporation income tax returns otherwise due in June, July or August is deferred to September 1, 2020.
  • Any payment of Part I tax normally due after March 17, 2020 is extended to September 1, 2020.
  • Note that by specifically referencing Part 1 tax, the CRA is not extending Part IV tax. As well there are no extensions for remittances of employer payroll withholdings and there has been no extension of time to withholding tax under Part XIII.

Useful links

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Benefit

  • Deferral of GST/HST remittance.

Timeline

  • GST/HST remittances have been extended to June 30, 2020, to the extent that they would be due after March 18, and before June 30, 2020. In general, this means that the following remittances are extended until June 30, 2020:
    • Monthly filers remittance amounts collected for the February, March and April 2020 reporting periods;
    • Quarterly filers remittance amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
    • Annual filers, whose GST/HST return or instalments are due in March, April or May 2020.
  • GST/HST return filings have not been extended however the CRA won't impose penalties where a return is filed late provided that it is filed by June 30, 2020.

Useful links

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Benefit

  • Deferral of Customs, Duties and HST for Imports.

Timeline

  • Payments owing for customs, duties, and the GST on imports that would otherwise be due in respect of the months of March, April and May are deferred to June 30, 2020. Deferral to June 30, 2020 of payments due for statements of account for March, April and May.

Useful links

Support for businesses – Ontario

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Benefit

  • Measure allows employers to defer WSIB payments for up to six months.
  • Schedule 1 employers with premiums owed to the WSIB will be allowed to defer reporting and payments until August 31, 2020.
  • The deferral will also apply to Schedule 2 businesses that pay WSIB for the cost related to their workplace injury and illness claims.
  • No interest will be accrued on outstanding premium payments and no penalties will be charged during this six-month deferral period.

Who should apply?

  • All employers covered by the WSIB workplace insurance are automatically eligible for the relief.
  • The premium deferral impacts businesses who report and pay monthly, quarterly or annually based on their insurable earnings.

Useful links

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Benefit

  • The measure will raise the EHT exemption from $490,000 to $1 million for 2020.
  • Another measure will also provide a five month relief period for Ontario businesses who are unable to file or remit their EHT on time due to the special circumstances caused by the COVID19.

Who should apply?

  • EHT is a payroll tax paid by employers based on their total annual Ontario remuneration.
  • Private-sector employers (except registered charities) with total annual Ontario remuneration over $5 million, and public-sector employers are not eligible for the exemption.

Useful links

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Benefit

  • Beginning April 1, 2020, penalties and interest will not apply to Ontario's businesses that miss any filing or remittance deadlines under select provincially administered taxes.
  • This will continue for a period of five months, up until August 31, 2020, under the following provincially administered tax programs:
    • Employer Health Tax
    • Tobacco Tax
    • Fuel Tax
    • Gas Tax
    • Beer, Wine and Spirits Taxes
    • Mining Tax
    • Insurance Premium Tax
    • International Fuel Tax Agreement
    • Retail Sales Tax on Insurance Contracts and Benefit Plans
    • Race Tracks Tax

Who should apply?

  • The interest and penalty relief period is available to all Ontario businesses that are required to file returns and make remittances under these tax programs.
  • Businesses will not be required to provide any documentation supporting their reasons for late filing or payments and they will not be required to advise the Ontario Ministry of Finance of their inability to meet their deadline(s).

Useful links

Support for businesses – British Columbia

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Benefit

  • Extension of tax filing and payment deadlines for the PST, municipal and regional district tax, tobacco tax, motor fuel tax and carbon tax until Sept. 30, 2020.
  • The scheduled April 1 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, will be delayed and their timing will be reviewed by Sept. 30, 2020.

Who should apply?

  • Eligible businesses.

Useful links

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Benefit

  • Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020. Businesses with a payroll under this threshold are already exempt from the tax.

Who should apply?

  • Eligible businesses

Useful links

Support for businesses – Alberta

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Benefit

  • The scheduled reduction of the general income tax rate on businesses from 10% to 9% was to become effective January 1, 2021, with a further decrease to 8% effective January 1, 2022. On June 30, 2020, as part of Alberta's Recovery Plan, it was announced that the Job Creation Tax Cut will be accelerated in order to decrease the general income tax rate on businesses from 10% to 8% effective July 1, 2020.
  • To maintain the small business tax rate, the specified percentage for the Alberta small business deduction that may be claimed by a CCPC on its qualifying amount will be reduced from 8% to 6%, effective July 1, 2020.
  • For a corporation whose taxation year includes days both before and after the effective date of July 1, 2020, the relevant tax rates or specified percentages are to be pro-rated based on the number of days in the corporation's taxation year that are before and after the effective date.

Who should apply?

  • Eligible businesses

Useful links

Support for businesses – Manitoba

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Benefit

  • Retail sales tax (RST) returns for small and medium-sized businesses with monthly RST remittances of no more than $10,000 per month that would normally be due on April 20 and May 20 will now be due on June 20, 2020.
  • Businesses that file on a quarterly basis that have a due date of April 20, 2020 will now have the due date extended to June 22, 2020.
  • Businesses that qualify for the above filing extension that were not able to file and remit their February sales tax return by the March 20th due date will not be assessed a late filing penalty and interest will not be applied until after June 22, 2020.
  • Interest will continue to apply on all outstanding tax debts prior to the March remittance deadlines.
  • Businesses will still receive paper returns in the mail or web notice reminders by email for return periods March and April.

Who should apply?

  • Eligible small and medium-sized business.

Useful links

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Benefit

  • This program will provide small and medium-sized businesses a non-interest bearing forgivable loan of $6,000 to businesses that do not qualify under federal programs.
  • Total available funds of up to $120 million.
  • Loan forgiven on December 31, 2020, if recipient attests the business has not received any major non-repayable COVID-19 federal support, as well as sector-specific grant federal programs specifically in response to the pandemic.
  • If the applicant received benefits under a federal COVID-19 program, this loan will be added to the recipient's 2020 tax bill.

Who should apply?

  • Eligible small and medium-sized business.

Eligibility

  • To be eligible for the MGPP funding, a business must:
    • Have been operational on March 20, 2020, the date the Manitoba government declared a province-wide state of emergency under The Emergency Measures Act because of COVID-19;
    • Have temporarily ceased or curtailed operations as a result of a COVID-19 public health order and have been harmed by the health order;
    • Be registered and in good standing with the Manitoba Business and Corporate Registry;
    • Have not qualified for federal government COVID-19 grant support; and
    • Have an email address and a bank account.

Useful links

Note: Due to mounting financial pressures associated with COVID-19, Manitoba Premier Brian Pallister stated on March 26, 2020 that the province will not be proceeding with the proposed cut to the provincial retail sales tax rate and introduction of the Manitoba Green Levy.

Support for businesses – Québec

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Benefit

  • Financial assistance which is granted to essential workers during the pandemic period.
  • Aims to compensate for the difference between essential workers' wages and the CERB.
  • Eligible workers will be able to apply for this assistance online starting May 19 and will receive $100 for each eligible work week, retroactive to March 15, 2020, for a maximum of 16 weeks.
  • Eligible workers could obtain, in addition to their salary, a taxable sum of $400 per month, up to a maximum of $ 1,600 for a period of 16 weeks.

Who should apply?

  • Essential workers during the pandemic period that earn wages of $550 or less per week.

Eligibility

  • To be eligible, must:
    • Work part-time or full-time in one of the essential service sectors during the program period
    • Receive gross wages of $550 or less per week
    • Have an annual employment income of at least $5,000 and no more than $28,600 for 2020
    • Be at least 15 years old, and
    • Have been resident in Québec on December 31, 2019, and plan to reside in Québec throughout 2020
  • For each eligible work week, an individual must not have received any sum relating to the ECP or the Temporary Worker Assistance Program (PATT COVID-19). Note that an individual is eligible even if the business that they work for receives federal government assistance related to wages paid by businesses.

Timeline

  • The first payment is scheduled for May 27, 2020. The payments will then be made every two weeks.

Useful links

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Benefit

  • Businesses operating in Québec, including cooperatives and other social economy enterprises with commercial activities.
  • Loan guarantee is the preferred form of financing. Financing can also take form of a loan from Investissement Québec.

Who should apply?

  • Eligible businesses that carry on business in Quebec and that find themselves in a precarious situation and temporary difficulty as a result of COVID-19.
  • Specific industries are excepted.

Eligibility

  • Must show that their financial structure offers realistic prospects for profitability and cannot be under the protection of the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
  • Must show that cash flow issues are temporary and that liquidity shortage stems from:
    • A problem involving the supply of raw materials or products (goods and services).
    • An ability or substantially decreased ability to deliver goods, products or services
  • Intended to shore up the business's working capital.
  • Minimum funding is $50,000.
  • Refinancing is prohibited.
  • Line of credit guarantee only applicable to: new lines of credit; increases to existing lines of credit.

Useful links

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Benefit

  • $4 billion to support Quebec companies temporarily impacted by COVID-19.
  • This envelope is complementary to other programs announced by many financial institutions and other investors, and is for companies of all sizes and in all industries from across Québec.

Who should apply?

  • Eligible companies.

Eligibility

  • To be considered for financing, companies must meet the following initial criteria:
    • Be profitable before the start of the COVID-19 crisis.
    • Have a promising growth outlook in their sector.
    • Seek financing of $5 million or more.
  • Form to be filed on website.

Useful links

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Benefit

  • Aims to support, for a limited period, eligible businesses who are experiencing financial difficulties due to COVID-19 and who need cash in the amount of less than $ 50,000.
  • The assistance will take the form of a loan or loan guarantee of up to $50,000.

Who should apply?

  • Eligible businesses.

Eligibility

  • Eligible businesses include companies from all sectors of activity; social economy enterprises, including cooperatives and non-profit organizations carrying out commercial activities.
  • To be eligible, the business must:
    • Have been active in Quebec for at least one year.
    • Be temporarily closed, likely to close or show warning signs of closure.
    • Be in a context of maintaining, consolidating or reviving its activities.
    • Demonstrate a direct link between their financial or operational problems and COVID-19.

Useful links

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Benefit

  • Six-month moratorium for repayment (capital and interest) of loans already granted through the FLI.
  • Interest accrued during this period will be added to the loan balance.
  • This measure is in addition to the moratorium already in place under most of the investmentpolicies in force in regional county municipalities (MRCs), which can reach twelve months.

Who should apply?

  • Eligible businesses with existing loans under the FLI.

Useful links

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Benefit

  • Aims to provide direct support to businesses experiencing a reduction in their activities, due to the effects of the COVID-19 pandemic, including the self-employed, in particular through collective promoters recognized by the Commission for Labor Market Partners (CPMT), that is, organizations whose actions affect several companies and people in employment.
  • This program can be combined with and complemented all other measures announced by the federal or provincial government during the period covered.
  • This program is made up of two components, a component aimed at businesses and a component aimed at collective promoters.
  • Reimburse up to a maximum of $25/hour for employees in training (portion not covered by other subsidies) and up to $150/hour for trainers.
  • Reimbursement of eligible expenses:
    • 100% of expenses $100,000 or less.
    • 50% of expenses between $100,000 to $500,000.
  • Retroactive to March 15, 2020.

Who should apply?

  • Eligible businesses.

Eligibility

  • Usual business activities must have been affected by the COVID-19 pandemic, whether by suspension, decline, increase or diversification of activity.
  • The activities eligible for the program concern training and human resources management.

Timeline

  • Projects are accepted until September 30, 2020 or until the budget envelope of $100 million has been used up.

Useful links

Support for individuals – Federal

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Benefit

  • The CERB is a taxable benefit of $500 per week for a period of up to 16 weeks for workers who must stop working due to COVID-19 and do not have access to paid leave or other income support.
  • If eligible for the CERB, individuals will receive $2,000 every four weeks.
  • Income tax will not be deducted at source, the CERB must be reported as income on the recipient's income tax return for the 2020 tax year.
  • An individual may be required to repay the CERB if they returned to work earlier than expected, including being paid retroactively, or if they applied for the CERB and later realized that they were ineligible, or if they applied for and received the CERB from both the CRA and Service Canada in respect of the same eligibility period.
  • As part of the CEWS, the CRA will be comparing employers' payroll records with information provided by CERB claimants to ensure that individuals who have returned to work and who have therefore become ineligible for the CERB repay those amounts.
  • The options available for returning or repaying the CERB payment may depend on whether the individual has the original CERB cheque or if the individual was paid by direct deposit.
  • On June 16, the Prime Minister announced that the eligibility period for the CERB will be extended for an additional 8 weeks, for a total of 24 weeks (or six periods).

Who should apply?

  • Workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
  • Working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
  • Workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
  • Wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance (EI).

Eligibility

  • The CERB will be available to workers:
    • Residing in Canada, who are at least 15 years old;
    • Who have stopped working because of COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular benefits between December 29, 2019 and October 3, 2020;
    • Who have not voluntarily quit their job;
    • Who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and
    • Who are or expect to be without more than $1,000 employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no more than $1,000 employment or self-employment income.
  • When determining the $5,000 income from employment and/or self-employment eligibility requirement and the $1,000 of allowable employment and/or self-employment income, the following amounts are also included: tips earned while working; non-eligible dividends; honoraria (e.g. nominal amounts paid to emergency service volunteers); and royalties (e.g. paid to artists) received. Pensions, student loans and bursaries are not employment income and therefore, should not be included in these amounts.
  • Applicants will have to confirm their continued eligibility for the CERB by reapplying for the benefit every four weeks, for a maximum of 16 weeks (or four periods).

Timeline

  • Each payment of the CERB covers a four-week period from March 15, 2020 to October 3, 2020
  • Canadians are expected to begin receiving their CERB payments within 10 days of making an application. However, those who elect for direct deposit of the CERB will receive their payments within three business days
  • Payments will be retroactive to the recipient's eligibility date
  • Applications for the CERB will be accepted up to December 2, 2020
  • Beginning May 11, the CRA will also allow taxpayers to repay the CERB using My Account
  • Must be repaid by December 31, 2020

Useful links

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Benefit

  • The government is providing an extra $300 per child through CCB program for the 2019-20 period.
  • This benefit will be delivered as part of the scheduled CCB payment in May.
  • On May 15, the Prime Minister announced that CCB benefits will not be cut off if recipients fail to meet the June 1 deadline for filing their 2019 income tax return. Benefits will continue until the end of September to allow for more time to file.

Who should apply?

  • Families who already receive the Canada Child Benefit do not need to re-apply.

Useful links

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Benefit

  • Provide support to students and new graduates who are not be eligible for the Canada Emergency Response Benefit or Employment Insurance or unable to work due to COVID-19.
  • Provide $1,250 per 4-week period for eligible students or $2,000 per 4-week period for eligible students with dependents or disabilities.
  • Benefit would be available for 16 weeks, from May 10 to August 29, 2020.
  • To be eligible, student must:
    • Be a Canadian citizen, registered Indian, permanent resident, or a protected person.
    • Be studying in Canada or abroad.
    • Not apply, receive, nor qualify, for the CERB or EI benefits for the same eligibility period.
    • One of the following applies:
      • Enrolled in a post-secondary educational program (at least 12 weeks in duration) that leads to a degree, diploma, or certificate.
      • Completed or ended their post-secondary studies in December 2019 or later.
      • Completed or expect to complete high school, or received, or expect to receive their high school equivalency in 2020, and have applied for a post-secondary educational program that starts before February 1, 2021.
    • One of the following applies:
      • Unable to work due to COVID-19 Looking for, but cannot find work due to COVID-19. Currently working during the COVID-19 pandemic, but their income from employment and self-employment has been $1,000 or less (before taxes) during the 4-week period they are applying for.
  • To be eligible for an additional $750 (for a total of $2,000) per 4-week period, at least one of the following must apply:
    • The student has a disability as defined for this benefit, and/or
    • They have at least one child under the age of 12 or other dependents
  • Applications opened on May 15.
  • All applications for this benefit must be submitted before September 30, 2020.
  • Students must re-apply for another 4-week eligibility period.
  • The CRA may ask applicants to provide information later to verify that they have been looking for work during the eligibility period(s) they have applied for and is advising that students register with the Government of Canada Job Bank to demonstrate that they are looking for work.
  • CESB is taxable and must be reported on student's 2020 income tax return.
  • The benefit must be repaid if: able to find work and are earning more than $1,000 (before taxes) during an eligibility period applied for; applied for CESB and later found that they are not eligible; received more than what they are entitled to.
  • The options available for returning or repaying the CESB payment may depend on whether the individual has the original CESB cheque or if the individual was paid by direct deposit.

Who should apply?

  • Students enrolled in a post-secondary education program, students who have graduated from or left their post-secondary studies no earlier than December 2019; or students who have completed, or will complete, high school in 2020 and have applied for a post-secondary educational program that begins before February 1, 2021.

Useful links

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Benefit

  • The CSSG is a one-time payment available at five levels, ranging from $1,000 to $5,000.
  • The amount will vary based on the number of hours each volunteer completes, with $1,000 provided for each 100 hours completed, up to a maximum of $5,000 for 500 hours.
  • To help find not-for-profit organizations looking for help during the pandemic, post-secondary students and recent graduates can use the new "I Want to Help" platform.

Who should apply?

  • Post-secondary students and recent graduates.

Eligibility

  • In order to be eligible for the grant, participants must be 30 years of age or younger, a Canadian citizen, permanent resident, or a student with a refugee status, and either:
    • enrolled in and attending post-secondary education during the spring, summer, or fall 2020 semesters;
    • recent post-secondary graduates (no earlier than December 2019); or
    • studying abroad and currently residing in Canada.

Timeline

  • Post-secondary students and recent graduates must register no later than August 21, 2020, to be eligible to receive the grant.
  • Completed applications for the CSSG must be submitted no later than November 6, 2020, and participants will only be able to count hours accumulated from June 25 to October 31, 2020.

Useful links

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Benefit

  • The government is providing a one-time special payment starting April 9 through the GST/HST credit for low-and modest-income families.
  • The one-time payment will be calculated based on information from your 2018 tax return.
  • The maximum amounts for the 2019-2020 benefit year will increase from:
    • $443 to $886 for those that are single;
    • $580 to $1,160 for those that are married or living common-law;
    • $153 to $306 for each child under the age of 19 (excluding the first eligible child of a single parent);
    • $290 to $580 for the first eligible child of a single parent.

Who should apply?

  • In most cases, all you have to do to receive the GST/HST credit each year is file your taxes, even if you have no income to report.

Useful links

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Benefit

  • Reducing required minimum withdrawals from RRIFs by 25% for 2020.
  • Similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.

Who should apply?

  • This will provide flexibility to seniors that are concerned that they may be required to liquidate their RRIF assets to meet minimum withdrawal requirements.

Useful links

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Benefit

  • One-time tax-free payment of $300 for seniors eligible for the Old Age Security (OAS) pension, with an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS).
  • Measure will give a total of $500 to individuals who are eligible to receive both the OAS and the GIS.
  • The Prime Minister announced on June 4 that seniors eligible for the OAS pension and the GIS will receive their special one-time, tax-free payment during the week of July 6.

Who should apply?

  • Eligible seniors.

Useful links

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Benefit

  • To support student and apprentice loan borrowers the following measures are in place from March 30 to September 30, 2020:
      • Suspension of repayments of Canada Student Loans and Canada Apprentice Loans
      • No payments are required on student and apprentice loans during this time.
      • Pre-authorized debits will be stopped.
    • No interest will accrue on student and apprentice loans.

Who should apply?

  • Students do not need to apply for the repayment pause.

Useful links

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Benefit

  • On June 5, the Prime Minister announced a special one-time, tax-free payment to individuals who are certificate holders of the Disability Tax Credit (DTC) as of June 1, 2020, as follows:
    • $600 for Canadians with a valid DTC certificate.
    • $300 for Canadians with a valid DTC certificate and who are eligible for the Old Age Security (OAS) pension.
    • $100 for Canadians with a valid DTC certificate and who are eligible for the OAS pension and the Guaranteed Income Supplement (GIS).
  • Combined with the special payments of $300 for Canadians who are eligible for the OAS pension and the additional $200 for those eligible for the GIS, all seniors with a valid DTC certificate will receive a total of $600 in special payment.

Eligibility

  • People who are eligible for this special payment will receive it automatically.

Who should apply?

  • Canadians who have a valid Disability Tax Certificate will automatically receive this payment.

Useful links

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Benefit

  • The tax filing deadline for individuals is June 1, extended from April 30.
  • No change has been made to the tax filing deadline for self-employed individuals and their spouse (remains June 15).
  • For individuals, the payment of any tax balance owing for 2019 that would have been due on April 30 has been extended until September 1.
  • Penalties and interest will not be charged if payments are made by the extended deadlines of September 1, 2020. This includes the late-filing penalty as long as the return is filed by September 1, 2020.

Useful links


The information in this publication is current as of July 8, 2020.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.

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