~shared with permission from Communitech
A full rundown of federal government supports for businesses can be found here, but here’s a quick(ish) overview:
- To help businesses hold on to their employees, the federal government is providing a temporary wage subsidy equal to 75% for the first $58,700 of salary, up to $847 per week. All businesses – the number of employees on the payroll doesn’t matter – that have seen revenue drop by 30% or more because of COVID-19 are eligible for the wage subsidy. This measure is retroactive to March 15. Businesses can re-hire recently let-go workers and place them on subsidized wages. The Department of Finance will release technical information (e.g. how to obtain the wage subsidy) for employers in the coming days.
- To help businesses avoid layoffs, the federal government is also enhancing the Work-Sharing Program. The program works this way: Instead of being laid off, multiple workers’ hours and pay are reduced, with the federal government making up the shortfall in the workers’ income.
- More credit is available to Canadian businesses through the new Business Credit Availability Program (BCAP). You can access the BCAP via BDC or EDC.
- Through the Canada Emergency Business Account, banks will soon offer $40,000 loans, guaranteed by the government and interest-free for the first year, to small businesses. If recipients meet certain conditions, $10,000 will be forgivable. The government will release more details in the coming days.
- More generally, the federal government is providing additional liquidity to Canadian banks. In return, the banks have committed to working with companies to help them get through COVID-19. Talk to your bank if you haven’t already done so.
- Businesses can defer, until after Aug. 31, the payment of any income tax amounts that become owing on or after March 19 and before September. In addition, GST/HST payments, as well as duties and taxes owed on imports, are deferred until June.
- In Ontario, the provincial government is helping businesses with cash flow through a number of measures: payment of most provincial taxes is deferred for five months without penalty or interest; Workplace Safety and Insurance Board (WSIB) payments are deferred for six months; municipalities will be providing property tax relief; and most businesses are not required to pay the Employer Health Tax.