Last Updated: November 24, 2020
Full list of federal supports for businesses
For a full list of supports for businesses including:
Avoiding layoffs, rehiring employees and creating new jobs
Taxes and tariffs
Financial support, loans and access to credit
Support for self-employed individuals
Supporting financial stability
Go to the Canadian government website here under the heading "support for businesses"
Canada Emergency Wage Subsidy (CEWS)
The Canadian Government is covering a portion of an employee's wages for eligible employers. The CEWS will allow you to re-hire your employees and avoid layoffs as the economy continues to safely reopen.
They have also announced the extension of the Canada Emergency Wage Subsidy (CEWS) until June 2021. The current subsidy rate, up to a maximum of 65% of eligible wages, will remain the same until December 19, 2020
Apply for CEWS here.
Canada Emergency Business Account (CEBA)
The Canada Emergency Business Account (CEBA) provides 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. This program has been implemented by banks and credit unions in collaboration with Export Development Canada. Business owners can apply for support from CEBA through their banks and credit unions. There are currently 232 financial institutions participating in the CEBA program. Check here to see the list.
This $25 billion program provides 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, due to the economic impacts of the COVID-19 virus. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
NEW: CEBA will be expanded to include access to an interest-free loan of up to $20,000, on top of the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. The application deadline for CEBA has been extended to December 31, 2020. More details to be announced.
Eligibility requirements for CEBA:
- The Borrower is a Canadian operating business in operation as of March 1, 2020.
- The Borrower has a federal tax registration.
- The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
- The Borrower has an active business chequing/operating account with the Lender, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020.
- The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
- The Borrower acknowledges its intention to continue to operate its business or to resume operations.
- The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.
Restrictions for how to use the CEBA:
The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
Canada Emergency Rent Subsidy (CERS)
The Canada Emergency Rent Subsidy (CERS), which replaced the federal government's Canada Emergency Commercial Rent Assistance (CECRA) program, opened November 23rd, 2020. This subsidy is provided directly to tenants, and supports businesses, charities, and nonprofits that have suffered a revenue drop. Organizations that have seen a decline of 70% or more in their revenues because of the pandemic are eligible for a 65% rent subsidy. The subsidy rate declines gradually for organizations that have seen declines below 70%. Organizations are able to make claims retroactively for the period that began September 27th.
Despite being called a rent subsidy, CERS allows organizations to claim support for eligible expenses that go beyond rent, such as property taxes, school taxes, municipal taxes, property insurance, and commercial mortgage interest.
Qualifying organizations that have been significantly restricted by a mandatory public health order issued by a qualifying public health authority can receive an additional 25% of rent support through the Lockdown Support. The combined effect of the rent subsidy and the Lockdown Support is that hard-hit businesses, non-profits, and charities subject to a lockdown can receive rent support of up to 90%.
CERS and the Lockdown Support are available until June 2021.