Relief for Business

Relief for Business

*As of April 22, 2020

Wage Subsidies

Payroll

What?

How much is it worth?

Application process

10% Temporary Wage Subsidy.
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This subsidy is a 3-month measure targeting employers that are small businesses (including incorporated and unincorporated businesses), non-profit organizations and registered charities. Eligible employers will receive a wage subsidy accessible by reducing remittances of income taxes withheld as source deductions from their employees' remuneration

The subsidy is equal to 10% of the remuneration paid from March 18 to June 19, 2020, capped at the lesser of $1,375 x the number of eligible employees and $25,000.

No need to apply - the employer calculates the subsidy when they remit payroll to CRA.

75% Canada Emergency Wage Subsidy (CEWS)
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This subsidy is a 3-month measure which will permit employers experiencing a significant revenue decline (announced as 15% in March & 30% in April/May) to receive a subsidy for employee remuneration paid. This subsidy will be paid by the government to the employer. Eligible employers are to include businesses (both incorporated and unincorporated), non-profit organizations and registered charities, but not public sector entities. The program will run for a 12-week period - March 15 to June 6, 2020..

The general principal is to encourage the employer to maintain workers at their pre-COVID-19 compensation levels. In general, the subsidy is intended to cover 75% of wages paid, with the employer covering the remaining 25%.

Applications will be taken starting April 27, 2020 through CRA's My Business Account portal and a web-based application. Businesses not already registered for the My Business Account service may wish to do so to be prepared when the application process becomes available.

Employment Insurance Work-sharing Program
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This existing program provides EI benefits to workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers.

Reduce payroll costs by 10% to 60%.

Application required prior to commencing participation. Details online. Just click here.

Loans

Loans

Description

How much is it worth?

Application Process

Canada Emergency Business Account (CEBA)
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Interest-free loans to small businesses and not-for-profits to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, organizations will need to have paid between $20,000 and $1.5 million in total payroll in 2019. If payroll does not meet that threshold, or employees are paid through dividends, eligible non-deferrable expenses between $40,000 and 1.5 million are required.

Up to $40,000 loans. 25% of the loan will be forgiven where it is repaid by December 31, 2022.

Contact your lending institution.

Business Credit Availability Program (BCAP)
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Loans supported by Export Development Canada and the Business Development Bank of Canada will become available.

Up to $6.25 million in loans available from each of the two programs.

Contact your lending institution.

Deferral of Tax

Deferral of Tax

Description

How much is it worth?

Application Process

Deferral of corporate income tax

Payment of balances and instalments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, will be due on September 1, 2020. No interest will accumulate on these amounts during this period.

Variable based on outstanding tax amount.

No need to apply - done automatically.

GST/HST & customs deferral

Payment of GST/HST payments, instalments or remittances due on March 27 and up to June 2020, will be due on June 30, 2020. Custom duties and GST on imports due for March, April and May 2020, will be due on June 30, 2020. No interest will accumulate on these amounts during this period.

Variable based on outstanding tax amount.

No need to apply - done automatically.