We know that clients have questions about the Federal government’s economic response plan, we have included a summary of the information below for business owners, employees and other support that’s available. Please don’t hesitate to contact us. We’re here for you.
For Business Owners
Wage Subsidy: To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. Eligible for those with payroll under $1M.
BDC Loan Expansion Facility– Details and contact information on tapping into the expanded credit. You must have been in business for at least two years; You must have more than $100,000 in annual gross revenues and should be profitable under normal operating conditions; Owners and/or business should have good credit history; The program enables business owners to apply for a Loan or Line of Credit with BDC for up to $100,000 to be repaid within five years. The interest rate is set today at 3.3%, which is very low for a business loan. The application is done on-line, and applicants would need to have various financial documents available to upload to complete the application. The processing time is about 2-3 weeks at present.
Facebook announces $100M grant program for small businesses– Facebook announced yesterday that it’s creating a $100 million grant program for small businesses. Applications aren’t open yet, but the company says this will include both ad credits and cash grants that can be spent on operational costs like paying workers and paying rent. It will be available to up to 30,000 businesses in the 30-plus countries where Facebook operates. Facebook has also created a Business Hub with tips and resources for businesses trying to survive during the outbreak.
Employment Insurance Information– Dedicated Covid-19 EI phone number 1-833-381-2725- The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim
Extending the tax filing deadline to June 1
Allowing taxpayers to defer tax payments until after August 31 (for amounts that are due after today and before September)
Temporarily boosting of the Canada Child Benefit payments
Banks deferring mortgage payments for up to 6 months- RBC, TD, BMO, CIBC, Scotiabank & National Bank.
Emergency Care Benefit” which offers up to $900 biweekly (for up to 15 weeks) to provide income support to workers who have to stay home and don’t have access to paid sick leave.
Six-month, interest-free reprieve on student loan payments.