The COVID-19 pandemic has had a significant impact on businesses, workers and communities across the country. We have put together a list of different subsidies, grants and loans available to help out those businesses who are in need during these trying times.
*Please note that this information is current as of May 25. 2020. Changes can and may happen. Please consult the municipal, provincial and federal website for the most updated information.
Canada Emergency Wage Subsidy (CEWS)
- CEWS provides eligible businesses, charitable or not-for-profit organizations that have experienced a drop in gross revenues with a 75% wage subsidy for up to three months
- This subsidy helps cover employees’ salaries up to $847 per week
- The program will be in place until August 29 and can be backdated to March 15, 2020
For more information and to apply visit: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
Canada Emergency Business Account (CEBA)
- CEBA provides small businesses and not-for-profits with interest-free loans of up to $40,000 to help cover operating costs during a period where their revenues have been temporarily reduced
- To be eligible businesses must have had a total payroll of between $20,000 to $1.5 million in 2019
- Businesses apply for CEBA through their banks and credit unions
- If the balance of the loan is repaid on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000)
- Life of loan is to December 31, 2025 and the interest rate as of January 1, 2023 is 5%
For more information and how to apply visit: https://ceba-cuec.ca/
Regional Relief and Recovery Fund (RRRF)
- RRRF provides businesses and organizations in sectors such as manufacturing, technology, tourism and others that are key to the regions and to local economies
- This fund is specifically targeted to those that may require additional help to recover from the COVID-19 pandemic, but have been unable to access existing support measures
For more information and how to apply: http://www.feddevontario.gc.ca/eic/site/723.nsf/eng/02583.html
Business Credit Availability Program (BCAP)
- Increases the credit available to small, medium and large Canadian businesses
- Businesses must have been generating revenues for at least 24 months
- Businesses must work with their existing financial institution to access it
- If their needs exceed the level of support the financial institution is able to provide, the financial institution will work alongside the Business Development Bank of Canada (BDC) or Export Development Canada (EDC) to access additional resources available under BCAP
- Through BCAP, BDC and EDC will provide more than $65 billion in loans and other forms of credit at market rates to businesses with viable business models
For more information on the different programs and how to apply visit – https://www.edc.ca/en/covid-19-business-resources.html & https://www.bdc.ca/en/pages/special-support.aspx
Farm Credit Canada (FCC)
- Provides additional financing for farmers, agribusinesses and food processors.
For more information visit: https://www.fcc-fac.ca/en/covid-19.html
Purchase Order Financing
- It helps cover up to 90% of the purchase order amount to ease cash flow to your suppliers.
For more information and to apply visit: https://www.bdc.ca/en/financing/busiMany businesses are being forced to rethink and reconfigure their business plans. ness-loans/pages/purchase-order-financing.aspx
Many businesses are being forced to rethink and reconfigure their business plans. If you need help sorting through your options, Keenans Accounting Service is here for you. Just give us a call at 705-526-7628 to arrange a consultation by phone or via Zoom meeting. We are practicing social distancing while working remotely and with reduced staff so please leave us a message and we will get back to you as soon as possible.