UPDATED: April 3, 2020
We realize things are moving fast and a ton of information has been released around support initiatives and incentives. It can be tough to sift through it all, so we figured we’d try to make it a bit easier.
Below are some resources & funding, their details and current status, that are available to support local entrepreneurs, businesses and humans in the OKGNtech community.
Canada Emergency Wage Subsidy
What is it? | If you are a business (small or big, profit, not-for-profit or charity) whose revenues have decreased 30% based on your revenues from March-May 2019 due to COVID-19, you can use this program. The government will cover up to 75% of the employee salaries on the first $58,700 earned ($847 per week). Prime Minister Trudeau mentioned this will be backdated to March 15th, 2020. There will be 3 application periods which will be done through your CRA “My Business Account”. Learn more here.
What about the 10% wage subsidy previously mentioned by government? This is still available. This allows eligible employers to reduce the amount of payroll deductions required to be remitted to the CRA. This can be for up to 3 months. The subsidy will equal 10% of pay during the 3 months to a max of $1,375 per employee and $25,000 per employer.
Canada Emergency Response Benefit (aka CERB)
What is it? | Up to a $2,000 per month payment (for up to 4 months) to workers whose income drops to zero because of the pandemic. This includes those who have been furloughed by their employers but technically still have jobs. You will need to show that you have not received income over 14 days of the period. You may receive the payment anywhere from 3+ days post-application. Check out the info here.
Deferred Tax Changes
What is it? |
Tax Returns: For individuals (other than trusts) the filing date for 2019 tax returns is deferred to June 1, 2020. Dollars due are deferred until after Aug 31, 2020 (without penalties). Read more about it here.
Tax Payments for Businesses: GST and HST payments, as well as duties and taxes owed on imports, will be deferred to June as well (which according to government amounts to $30 billion in interest-free loans to businesses). More details here.
If you’re struggling to get by right now, and you have a payment due at the end of the quarter, we’re going to give you more time. It will also allow you to keep the money that you would have sent to the government and use it, instead, for your immediate needs
Justin Trudeau, Prime Minister of Canada
What about BC Tax Changes? There are several changes on a provincial level, check out the details here.
Canada Emergency Business Account |
What is it? | Last week Prime Minister Trudeau mentioned that they have developed a Small Business Account where companies can apply for up to $40,000 in government-guaranteed loans. This is a $25 billion program that provides loans that are interest-free for the first year. To qualify, organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000). Read more about the program here.
British Columbia Emergency Benefit for Workers
What is it? | A tax-free one-time payment of $1,000 payment to British Columbians whose ability to work has been affected by the outbreak. You can apply for this if you are receiving federal Employment Insurance (EI), or the new Canada Emergency Response Benefit (CERB), as a result of COVID-19 impacts. Applications for this will open soon, stay up to date here.
Increased Canada Child Benefit
What is it? | Government is providing an extra $300 per child through the CCV for 2019-2020—which is about $550 more for the average Canadian family. Learn more here!
British Columbia Rent Rebates
What is it? | The BC government announced a $500 rent rebate for anyone struggling with rent payments due to COVID-19. There is also a moratorium on evictions and a rent freeze. Learn more about it here.
BDC COVID-19 Financing Support
What is it? | BDC has working capital loans of up to $2 million with flexible repayment terms plus they are reducing rates on new eligible loans. Stay updated on their loans and initiatives here.
Export Development Canada (EDC) new loans for Exporters
What is it? | EDC is supporting export companies by offering their bank a guarantee on loans of up to $5 million. This will help companies access more cash immediately. For more details, talk to your financial institution about this opportunity and read up on it here.
Want to chat more about options available for you, your team and your family? Let’s connect! If you want to book some time to chat through our virtual concierge program, here is my calendar.