COVID-19 FLEXIBILITY MEASURES / MESURES D'ASSOUPLISSEMENT

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CEBA

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

To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019 or the borrower has eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$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. 

Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.

On October 9, 2020 the government announced that it is working with Export Development Canada (EDC) and financial institutions to expand the CEBA program by providing an additional interest-free CEBA loan amount of $20,000, of which up to half will be forgivable if the balance of the loan is paid by December 31, 2022.  Businesses accessing the additional $20,000 of financing will be required to attest to need.

CECRA

We reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.

The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, June , July & August & September 2020.

The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent.

Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID revenues. This support will also be available to non-profit and charitable organizations.

Application deadline was September 30, 2020.

CEWS 

**CEWS will be extended until summer 2021. More information to come.**

The Canada Emergency Wage Subsidy (CEWS) supports employers that are hardest hit by the pandemic, and protect the jobs Canadians depend on.

The subsidy generally covers 75% of an employee's wages – up to $847 per week - for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April, May, June & July 2020.

Employers who are eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan paid in respect of employees who are on leave with pay.

The Government announced that the CEWS would be extended up to November 21, 2020. The eligibility criteria will apply for the current period (period 4). Any potential changes would commence as of periods 5 (July 5 to August 1) .

Changes to CEWS as of claim period 5:

• the subsidy rate varies, depending on how much your revenue dropped
• if your revenue drop was less than 30% you can still qualify, and keep getting the subsidy as employees return to work and your revenue recovers
• employers who were hardest hit over a period of three months get a higher amount
• employees who were unpaid for 14 or more days can now be included in your calculation
• use the current period’s revenue drop or the previous period’s, whichever works in your favour
  • for periods 5 and 6, if your revenue dropped at least 30%, your subsidy rate will be at least 75%
• even if your revenue has not dropped for the claim period, you can still qualify if your average revenue over the previous three months dropped more than 50%
• the maximum base subsidy rate is 60% in claim periods 5 and 6
• the maximum base subsidy rate will begin to decline in claim period 7, gradually reducing to 20% in period 9

For claim periods 5 to 9:

• you can use the new calculation, 
• you may also qualify for a top-up

Note: Claim periods 7 and forward must use the new calculations

FINANCIAL ASSISTANCE FOR BARS & RESTAURANTS

• Eligible businesses can have up to 80% loan forgiveness of the following eligible fixed costs: 
  • Municipal and school taxes
  • Rent or interest on mortgages 
  • Fees for public services (electricity, gas)
  • Insurance
  • Telecommunications fees
  • Fees for permits and associations
• The PME MTL network will be in charge of launching this assistance measure, which is part of the city’s emergency assistance program for small businesses.

 CERS

Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

Federal government introduces legislation for new recovery benefits

On September 24, 2020, the federal government tabled Bill C-2, An Act relating to economic recovery in response to COVID-19, which creates three new temporary recovery benefits to support Canadians who are unable to work for reasons related to COVID-19. Specifically, the legislation includes:

• A Canada Recovery Benefit (CRB) of $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support. This benefit would support Canadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50 per cent.
• A Canada Recovery Sickness Benefit (CRSB) of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.
• A Canada Recovery Caregiving Benefit (CRCB) of $500 per week for up to 26 weeks per household, for eligible Canadians unable to work because they must care for a child under the age of 12 or a family member because schools, day-cares or care facilities are closed due to COVID-19 or because the child or family member is sick and/or required to quarantine.
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As announced on August 20, temporary measures to help Canadians access EI benefits more easily are effective on September 27, 2020, for one year. These changes will also establish a minimum weekly benefit payment of $500 for all EI recipients, at the same level as the CRB.

PLEASE BE SAFE AND TAKE CARE OF YOURSELF & YOUR LOVED ONES. 

SVP VEUILLEZ ÊTRE SÉCURITAIRE ET PRENDRE SOIN DE VOUS ET VOS AMOURS.