Purpose: Help businesses keep and return workers to their payroll.
Clientele: Corporations, individuals, registered charities, NPOs and partnerships.
Eligibility: 15% revenue drop for March 2020 and 30% drop for April and May 2020.
Amount: Subject to a formula. No cap per eligible entity.
Period covered: 6 four-week periods starting on March 15, 2020 and ending on August 29, 2020.
Availability of funds: Since April 27, 2020, the CRA platform is live. Processing time of an application is between 7 and 10 business days.
Purpose: Help businesses cover their operating costs during a period where their revenues have been temporarily reduced
Clientele: CCPCs eligible to the small business deduction, individuals, registered charities, NPOs and partnerships
Eligibility: Having a payroll account with CRA as of March 18, 2020
Amount: 10% of remuneration subject to caps; up to $1,375 per employee (to a maximum of $25,000 per entity), for Canadian employees
Period covered: March 18 to June 19, 2020
Availability of funds: Reduction of Federal income tax deduction at source remittances due for period covered.
Purpose: Help small business tenants meet non-deferrable expenses.
Clientele: Corporations and NPOs
Eligibility: 2019 payroll between $20,000 and $1,5M based on 2019 T4SUM summary of remuneration paid. Eligibility expanded to include applicant with remuneration under $20,000 under certain conditions. Having a business operating account with a financial institution.
Amount: Up to $40 000 in the form of a line of credit
Tenor and interest rate: Interest- free for the first year, government-guaranteed; Repayment incentive / forgiveness of 25% of loan up to $10,000 if balance repaid by or on December 31, 2022.
Availability of funds: Apply with your financial institution
Purpose: To fund operational cash flow needs (including regularly scheduled principal and interest payments on existing debt).
Clientele: Canadian qualifying SMEs.
Amount: New additional credit up to $6,25M (Co-lender BDC 80% and financial institution 20%).
Tenor and interest rate: Commercial interest rate applies; 10-year repayment period.
Availability of funds: Available with most financial institutions until September 30, 2020.
Purpose: To finance operations and liquidity needs of the business only.
Clientele: Domestic businesses and Export-oriented Canadian businesses.
Eligibility: May be subject to conditions per your financial institution.
Amount: EDC guarantee of up to $80M (financial institution 100%).
Tenor and interest rate: Interest rate and repayment period to be determined by lending financial institution.
Availability of funds: TBD in cooperation with the applicant’s financial institution.
Purpose: To cover operational liquidity needs and business continuity.
Clientele: Domestic businesses and Export-oriented Canadian businesses.
Eligibility: May be subject to conditions per your financial institution.
Amount: New additional credit up to $60M.
Tenor and interest rate: Interest rate and repayment period to be determined by your financial institution.
Availability of funds: TBD in cooperation with the applicant’s financial institution.
Purpose: Help small business tenants meet operating expenses.
Clientele: Tenants whose have incurred a revenue drop of 70%.
Eligibility: Tenants must have a monthly gross rent under $50,000 $ and generate annual revenues under $20M. Landlords are not compelled to opt in.
Period covered: April, May and June 2020.
Amount: Tenant to only pay 25% of base rent. Landlord to receive 50% of based rent under the form of a forgivable loan – essentially absorbing the remaining 25%.
Availability of Funds: Government will deploy on May 25, 2020.
Purpose: Provides bridge financing to large businesses whose needs are not met through conventional financing and to keep their operations going.
Clientele: Large corporations with the exception of those in the financial sector with annual revenues over $300M, as well as certain not-for-profit businesses.
Eligibility: Applicant will have to demonstrate how they intend to preserve employment and investment activities as well as collective bargaining agreements and commit to protect workers’ pensions.
Period covered: TBD in cooperation with the applicant’s financial institution.
Amount: Minimum of $60M.
Availability of Funds: Government is in the final stages of establishing the program and further information will be provided shortly.
The COVID-19 pandemic has resulted in several large retail operations seeking insolvency protection both under the Companies Creditors Arrangement Act (CCAA) in Canada and under its US equivalent, Chapter 11. In Canada, this list includes retail giants Aldo Group and Reitmans Group. In the United…
The Canada Emergency Commercial Rent Assistance (CECRA) program was created by a partnership between the governments of Quebec and Canada to provide rent relief and assistance to small businesses. Navigating the world according to CECRA is complicated – contracts and enrollment necessitate understanding of how…
Just as small businesses across the country, Not-for-profit organisations (NPOs) and Registered Charities have been severely impacted by the COVID-19 pandemic. To help your organisation survive the storm, several relief measures and deferrals specific to your sector have been put in place.
On Saturday April 11, 2020 The House of Commons held a special assembly to obtain royal assent for Bill C-14, a second Act regarding certain measures in response to COVID-19 . Many of the details surrounding the Canada Emergency Wage Subsidy (CEWS) program were already…
Canadian companies have not made much use of the Bankruptcy and Insolvency Act over the past 10 years1 likely due to years of growth spurred by abundant capital and easy access to credit. Unfortunately, 2020 will likely see a reverse of this trend. The COVID-19…
COVID -19 M&A Considerations: our professionals highlight the important points that stakeholders in a transaction should consider.
COVID-19 | Summary of economic measures announces by governments to help stabilize the economy during this challenging period.
