COVID-19 Government relief for business

Summary of key government relief options. While we update this information regularly, we recommend you refer to their websites for the most up-to-date information. Updated June 15, 2020.

Federal Government of Canada

Highlights and Eligibility

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

To qualify, your business must:

  • Have been registered and operational as of March 1, 2020
  • Be able to demonstrate you have paid between $20,000 to $1.5 million in total payroll in 2019.
  • For applicants with $20,000 or less in total employment income paid in the 2019 calendar year your business: a) must have a Canada Revenue Agency business number and have filed a 2018 or 2019 tax return, and b) have eligible non-deferrable expenses between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. Expenses will be subject to verification and audit by the Government of Canada.

Update: The Government of Canada has extended the application deadline to October 31, 2020. 

Learn more about CEBA



Highlights and Eligibility

The Canada Emergency Wage Subsidy has been updated so that eligible businesses can now qualify for a base subsidy. The subsidy amount is based on the businesses revenue drop and can be calculted here. Employers who were hardest hit over a period of three months get a higher amount. The program will be in place from Mar 15 to November 21, 2020 and is in place to help get employees back to work.

For more information visit https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html


How to Apply (if applicable)

Eligible employers will be able to apply through the Canada Revenue Agency’s My Business Account portal as well as a web-based application.

For more information on how to apply visit the Government of Canada's page.

Highlights and Eligibility

The federal government has announced plans to introduce the Canada Emergency Commercial Rent Assistance (CECRA) program for small businesses in order to provide loans and/or forgivable loans to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, June, July and August. This is designed to provide meaningful relief for businesses that can’t afford to pay their landlords at a time when their operations are shut down due to the COVID-19 pandemic

CECRA will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments payable by eligible small business tenants experiencing financial hardship during qualifying months. The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a pledge not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.

Affected small business tenants are those paying less than $50,000 per month in rent and who have temporarily ceased operations, or have experienced at least a 70-per-cent drop in pre-COVID-19 revenues.

The federal Canada Mortgage and Housing Corp. will administer and deliver the program.

How to apply (if applicable)

If you haven’t yet submitted an application, you must apply by August 31, 2020. If you have been previously approved, you must opt in for the July and August extensions by September 14, 2020.

Highlights and Eligibility

The BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. This program will provide term loans for operational and liquidity needs of businesses, which could include interest payments on existing debt and will be available to businesses that were financially viable and revenue-generating prior to the COVID-19 outbreak.

The program is designed in three segments to target support to different business sizes and will provide loans up to:

  • $312,500 to businesses with revenues of less than $1 million;
  • $3.125 million for businesses with revenues between $1 million and $50 ; and
  • $6.25 million for businesses with revenues in excess of $50 million

Loans will be interest-only for the first 12 months, with a 10-year repayment period.

Update: the deadline to apply has been extended until June 30, 2021.

How to apply (if applicable)

For more information on how to apply and repayment, visit the BDC page.

Highlights

The EDC Business Credit Availability Program (BCAP) Guarantee is a new partnership between EDC and financial institutions across Canada to support businesses financially impacted by the COVID-19 pandemic. It allows financial institutions to issue cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.

The EDC BCAP is intended to help with short-term liquidity and working capital needs over the next 12 months (e.g., recurring operating expenses, buying inventory, meeting accounts payable, covering delayed receivables or other needs due to cyclical cash flow).

It is not intended for debt repayment ( outside of normal monthly payments), refinancing, dividend payments or long-term asset purchases.

Learn more about the EDC BCAP term loan available to ATB medium to large-sized business customers.

Update: the deadline to apply has been extended until June 30, 2021.

How to apply (if applicable)

If you’re an ATB business customer and are interested in applying for the EDC BCAP, please contact the team member you typically deal with, email us or call 1-800-332-8383.

Highlights and Eligibility

Through the Business Credit Availability Program, the Business Development Canada’s (BDC) Mid-Market Financing Program will provide commercial loans ranging between $12.5 million and $60 million to medium-sized businesses whose credit needs exceed what is already available through the Business Credit Availability Program and other measures.

Qualifying businesses have annual revenues in excess of about $100 million to $500 million, from any sector or industry. 

Update: the deadline to apply has been extended until June 30, 2021.

How to apply (if applicable)

For more information on how to apply and repayment, visit the BDC page. 

 

Highlights and Eligibility

Through the Business Credit Availability Program, EDC’s Mid-Market Guarantee and Financing Program will bring liquidity to companies who have approximate revenues of $50 million to $300 million. EDC will continue to work with Canadian financial institutions to guarantee 75 % of new operating credit and cash-flow loans – ranging in size from $16.75 million to a maximum of $80 million.

These expanded guarantees are available to exporters, international investors and businesses that sell their products or services within Canada.

How to apply (if applicable)

More details will be made available soon.

 

Highlights and Eligibility

The federal government is establishing the Large Employer Emergency Financing Facility (LEEFF) to provide 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.

LEEFF is open to large Canadian employers who (a) have a significant impact on Canada’s economy, as demonstrated by (i) having significant operations in Canada or (ii) supporting a significant workforce in Canada; (b) can generally demonstrate approximately $300 million or more in annual revenues; and (c) require a minimum loan size of about $60 million.

More information is available from the Canada Development Investment Corporation.

 

How to apply (if applicable)

To apply, send an email to leeff-cuge@cdev.gc.ca with either a completed online enquiry form OR with the following information:

  1. Name of business
  2. Headquarters address
  3. Description of business
  4. Business annual revenues (FY19 results)
  5. Number of employees
  6. Stock exchange symbol (if publicly listed)
  7. Name of contact
  8. Title of contact
  9. Email of the contact (must be from the enterprise's corporate domain)
  10. Phone number of contact

Please note: only emails from the enterprise's corporate domain will be accepted.

Highlights and Eligibility

Western Economic Diversification Canada (WD) will provide eligible small- and medium-sized enterprises (SMEs) with an interest-free repayable contribution of up to $1,000,000 to help alleviate financial hardship resulting from COVID-19. The objective of this program is to assist western Canadian SMEs that do not qualify for other government relief programs.

Eligibility criteria for those seeking funding up to $40,000 is here.
Eligibility criteria for those seeking funding of more than $40,000 is here.

 

How to apply (if applicable)

Apply online now

Highlights and Eligibility

The maximum duration of the Work-Sharing program has been extended from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.

How to Apply (if applicable)

For more information and to apply online, employers can visit www.canada.ca/en/employment-social-development/services/work-sharing/apply.html

Highlights and Eligibility

The federal government has extended the time period for temporary layoffs by up to six months in the Canada Labour Standards Regulations to allow employers more time to recall laid-off employees.

Highlights and Eligibility

On July 27, 2020, a further extension was announced such that current year federal corporate income tax balances and instalments have been extended to September 30, 2020. No interest or penalties will accumulate on these amounts during this period.

COVID-19

Our latest update on COVID-19, including customer relief programs and branch closures.

Provincial Government of Alberta

Highlights & Eligibity

The Small and Medium Enterprise Relaunch Grant is available to eligible small- and medium-sized businesses, cooperatives and non-profits. It offers $5,000 in funding to offset a portion of their relaunch costs.

Businesses and non-profits can use these funds for things such as physical barriers, purchasing personal protective equipment and disinfecting supplies, paying rent and employee wages, replacing inventory and more.

How to apply (if applicable)

Apply here. Application intake will remain open until August 31 or for 4 weeks following the start of Phase 3 of Alberta’s Relaunch Strategy – whichever is later.

Highlights & Eligibity

The act and regulation protects eligible commercial tenants from having their leases terminated if they can’t pay rent as a result of the COVID-19 pandemic and prevents landlords from raising rent and charging late fees and penalties on missed rent. If a landlord imposed late fees, penalties or rent increases on a commercial time between March 17,2020 and August 31, 2020, they would need to be reimbursed.

How to apply (if applicable)

The act's protections apply from March 17, 2020 to August 31, 2020. Eligibility details can be found here.

Highlights & Eligibity

Alberta corporate income tax balances owing on or after March 18, 2020, or instalments due between March 18, 2020 and September 30, 2020, may be deferred until September 30, 2020 to increase access to cash so employers can pay employees, address debts and continue operations.

Due dates for filing corporate income tax returns have been extended to:

  • June 1, 2020: for returns due after March 18, 2020 and before June 1, 2020
  • September 1, 2020: for returns due in July, July or August 2020

Highlights & Eligibity

Small, medium and large private sector employers can defer WCB premium payments until 2021.

For small and medium businesses, the government will cover 50% of the 2020 premium when it is due in 2021 - saving businesses $350 million.

Large employers will have their 2020 WCB premium payments deferred until 2021, at which time their premiums will be due.

Employers who have already paid WCB premiums in 2020 are eligible for a rebate or credit.

Highlights & eligibity

Residential, farm and small commercial customers can defer electricity and natural gas bill payments for the next 90 days to ensure no one will be cut off, regardless of the service provider.

This program is available to Albertans who are experiencing financial hardship as a direct result of COVID-19. For example, those who have lost employment or had to leave work to take care of an ill family member.

This program came into effect on Mar 18, 2020 and will run through Jun 18, 2020.

How to apply (if applicable)

Call your utility provider directly to arrange for a 90-day deferral on all payments.

Highlights & eligibity

Hotels and other lodging providers are permitted to keep tourism levy amounts collected between March 1 and December 31, 2020. Providers that have already remitted amounts collected after March 1, 2020 are entitled to a refund. A deferral of tourism levy remittances remains in place until August 31, 2020 for unpaid amounts that became due to the government on or after March 27, 2020, but are not eligible for the additional assistance described above.

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