SUPPORT FOR BUSINESSES
 
CEBA:
 
Our government announced that applications for funds through the Canada Emergency Business Account (CEBA) will open tomorrow. The CEBA will provide interest-free loans of up to $40,000 to small businesses and not-for-profits through their financial institutions. Up to 25% of the loan will be forgiven (up to $10,000) if repaid by December 31, 2022. 
 
If you are interested in accessing funds through CEBA, please connect with your financial institution to find out how you can apply.
 

CEWS:
 
Today, our government provided further details on the eligibility criteria for businesses to access the Canada Emergency Wage Subsidy(CEWS). Find more details about today’s announcement in our News Release here.
 
The proposed CEWS would apply at a rate of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week, per employee. The program would be in place for a 12-week period, from March 15 to June 6, 2020. Employers of all sizes and across all sectors of the economy would be eligible, with certain exceptions including public sector entities. An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees.
 
Our government is also proposing that employers eligible for the CEWS be entitled to receive a 100% refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund would apply to the entire amount of employer-paid contributions in respect of remuneration paid to furloughed employees in a period where the employer is eligible for the CEWS.
 
In order to address the realities faced by the not-for-profit sector, high growth companies, and new businesses, our government has proposed the following additional flexibility:

• To measure their revenue loss, we have proposed that all employers have the flexibility to compare their revenue of March, April, and May 2020 to that of the same month of 2019, or to an average of their revenue earned in January and February 2020.
• For March, we propose to make the CEWS more accessible than originally announced by reducing the 30% benchmark to 15% in recognition of the fact that many businesses did not begin to be affected by the crisis until partway through the month.
• Recognizing that the time between when revenue is earned and when it is paid could be highly variable in certain sectors of the economy, we have proposed that employers be allowed to measure revenues either on the basis of accrual accounting (as they are earned) or cash accounting (as they are received). Special rules would also be provided to address issues for corporate groups, non-arm’s length entities, and joint ventures.
• Registered charities and non-profit organizations would also be able to benefit from the additional flexibilities being provided to employers with respect to the revenue loss calculation. In addition, to recognize that different types of organizations are experiencing different types of funding pressures, it is proposed that charities and non-profit organizations be allowed to choose to include or exclude government funding in their revenues for the purpose of applying the revenue reduction test.

Find more in-depth information about the CEWS in our government’s Backgrounder.
 

WHERE TO START:
  
To get the help you need: 

1) Visit our government’s COVID-19 Economic Response Plan website for information about supporting your employees and your business. We are constantly updating it as the COVID-19 crisis evolves. 

2) Contact your local financial institution. Since we know most small businesses have an existing relationship with their local financial institution, we have worked with the financial sector to increase their lending capability to support you during this challenging time.

3) Consult the Canadian Chamber of Commerce’s pandemic preparedness guide to help prepare your business in the days and weeks to come.  


REMINDERS:
 
You can find live updates and information about Canada’s response to COVID-19 here: canada.ca/coronavirus
 
The Canadian Chamber of Commerce has established the Canadian Business Resilience Network (CBRN) in partnership with the Government of Canada to help the business community in the face of the COVID-19 pandemic: www.cbrn.ca.
 
The Canada Border Service Agency’s Border Information Service (BIS) is now accessible 24/7. For the most up-to-date information related to cross border travel and business, please call 1-800-461-9999.
 
We will continue to carefully monitor all developments relating to the COVID-19 pandemic and will continue to take further action to protect Canadians and the economy.

 
CANADA SUMMER JOBS
 
Today, we announced enhancements to support employers and youth through our Canada Summer Jobs (CSJ) program. We are adjusting the delivery of the program to better support our communities during the COVID-19 crisis. We had already dedicated $263 million in funding for this program, and we are now enhancing the program to align its funding with our government’s COVID-19 Economic Response Plan.
 
These enhancements will include:

• an increase to the wage subsidy, so that private and public sector employees can receive up to 100% of the provincial or territorial minimum hourly wage for each employee;
• extending the end date for employment to February 28, 2021;
• allowing employers to adapt their projects and job activities to support essential services; and
• allowing employers to hire staff on a part-time basis.

 
With these enhancements, we believe the CSJ program can play an important role in supporting employers and young workers during this difficult period. Our goal is to keep youth working while keeping them safe. Their safety and the safety of employers is a top priority.

 
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