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, May and June 2020. Any revenue drop from July 2020 to May 2021 qualifies for the subsidy.
Amount: Subject to a formula for March to June 2020. No cap per eligible entity. From July on, the basic subsidy is based on the amount of revenue drop and an additional top-up subsidy for employers whose revenues are down 50% or more. Maximum subsidy of 75% for periods 11 to 16.
Period covered: Covers remuneration from March 15, 2020 to to June 5, 2021.
Deadline to file a claim: For the 1st to 5th claiming period: January 31, 2021
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 businesses meet operating expenses.
Clientele: Corporations and NPOs
Eligibility: 2019 payroll between $20,000 and $1,5M based on 2019 T4SUM summary of remuneration paid (payroll stream). Eligibility expanded to include applicant with remuneration under $20,000 if applicant has non deferrable expenses between $40,000 and $1,500,000 in 2020 (Non deferrable expenses stream).
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: Application deadline with your financial institution is December 31, 2020
Extension: An extra 20,000 $ (of which 10,000 $ will be forgiven is repaid by December 2022). More details will be available shortly.
Other specifics: An attestation of the impact of the COVID-19 pandemic will be required to obtain the extra financing.
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: Provide financial support to businesses that have been hardest hit by the pandemic.
Clientele: Same as CEWS or CERS
Eligibility: 50% revenue decline year over year for 3 months within 8 months prior filing an application and have filed a claim under the CEWS or CERS
Amount : Between $25,000 and $6,250,000
Tenor and interest rate: 10 years at low-interest rate
Availability of funds: Applications can be made starting February 1, 2021
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: Businesses, charities and NPOs that have suffered a revenue decline.
Support quantum:
Eligible expenses:
Duration: October 2020 to June 2021. Proposed changes to cover up to March 2021.
Availability of funds: Since November 30, 2020, the CRA platform is live. Processing time of an application is between 7 and 10 business days.
Other specifics: Support provided directly to tenant while also providing support to property owners.
Purpose: Providing emergency financing for businesses whose liquidity are impacted by COVID-19.
Clientele: Businesses must show that their financial structure offers realistic prospects for profitability.
Eligibility: All industries except without limitation, weapons manufacturing, production of tobacco and drugs, other activity that may offend public morals. Businesses cannot be under the protection of the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
Amount: Minimum of 50,000 $ loan and/or loan guarantee.
Specific conditions for the tourism industry:
CECRA Quebec Top Up – 12.5% Subsidy : Property owners of a commercial property located in the Province of Quebec will receive an additional 12.5%. That amount equals to 25% of the total CECRA funding already obtained. No additional information is required. Deadline to apply is December 18, 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.
Eligibility: Businesses, located in a red zone, forced to cease their operations between October 1 and October 28, 2020 because of the pandemic. Includes namely restaurants (even restaurants opened for pick up and delivery), bars and museums. To be eligible, the business must have been closed following a government decree for at least 10 days during October 2020.
Quantum of forgivable component: 80% of eligible fixed expenses incurred, up to 15,000 $.
Eligible fixed expenses include:
Period covered: October 1 to October 28, 2020.
Availability: Through Investissement Quebec and/or your RCM on loans already granted or to be granted.
Like for all other business operations, the COVID-19 pandemic is changing how nonprofit organizations execute their fundraising activities. Many nonprofits have switched to virtual activities to keep donors engaged and to encourage giving.
It is important to note that the CEBA debt forgiveness amount is calculated on the highest amount drawn from your CEBA at any time up to and including a date to be determined by your financial institutions. You should discuss with your account manager at…
Over the last several months many of us have received government aid, whether directly through CERB payments, forgivable loans, wage subsidies, rent subsidies and other payments. Are these payments taxable, and if so, how?
Because of the COVID-19 crisis, both the federal and Quebec governments have put in place simplified procedures to be able to claim home office expenses.
Canada Revenue Agency (CRA) has recently announced additional reporting requirements for employers for fiscal year 2020 related to COVID-19 relief measures. There may be important action for you to be taken.
Since November 30, 2020, the CRA’s online platform, allowing claims to be filed under the CERS is available. Our decision tree will provide insights as to your eligibility and subsidy quantum you may get from the program.
On November 30, 2020, Canada’s Minister of Finance, Chrystia Freeland, released the “Supporting Canadians an Fighting COVID-19 : Fall Economic Statement 2020” plan. This plan includes proposed changes that have yet to receive approval by the House of Commons and Royal Sanction from the Senate.…
Sometimes a business is forced to shut down temporarily as is the case because of sanitary measures enforced by the government in relation to COVID-19. In these cases, some insurance coverage deemed as “business interruption” might apply.
As most employees in Quebec started working from home in mid-March, many of them have been working from home for six months, and there is a prospect of claiming home office expenses for the 2020 tax season.
On July 17, 2020, Canada’s Minister of Finance, Bill Morneau, announced the most anticipated proposed changes to the Canada Emergency Wage Subsidy (CEWS) program. These are proposed changes that have yet to receive approval by the House of Commons and Royal Sanction from the Senate.…
By law, non-profit organizations (NPOs) are required to hold an annual general meeting (AGM) for its members. Given the implications of the COVID-19 pandemic, NPOs will now find themselves in a position where it is not feasible
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.
