COVID-19 Relief Programs For Entrepreneurs

 

While this article is current, as of October 25, 2020.

The list of COVID-19 Relief Programs is changing rapidly and appropriateness and qualification varies along with the circumstances of each individual or business.  For assistance applying for programs, please contact us.

Here are some of the programs to assist individuals and business impacted by COVID shutdowns.

 

Self Employed Individuals

Canada Recovery Benefit (CRB) And Canada Emergency Response Benefit (CERB) For Individuals – Provides 500 per week for up to 26 weeks for people who are self employed and don’t qualify for Employment Insurance.  Go to CRA’s “my account”  through Canada.ca, or call 1-800-959-2019 or 1-800-959-2041.

 

Businesses

Canada Emergency Wage Subsidy (CEWS) - A Canadian employer who has seen a drop in revenue due to COVID-19 is eligible for a 75% wage subsidy of up to $847 per week per employee, retroactive to March 15.  The CEWS prevents further job losses, encourages employers to re-hire workers previously laid off as a result of COVID-19, and help better position Canadian companies and other employers to more easily resume normal operations following the crisis.  The Canada Emergency Wage Subsidy (CEWS) can be accessed in the "my business account login", under the Payroll (RP) activity menu.  For a link to a webinar about the CEW click here.

The 10% Temporary Wage Subsidy (TWS) - is a three-month measure that allows eligible employers to reduce the amount of federal, provincial, or territorial income tax they have to remit to the Canada Revenue Agency (CRA). The subsidy is equal to 10% (or a lower percentage the employer elects to claim) on the remuneration paid from March 18 to June 19, 2020, up to $1,375 for each eligible employee. The maximum for each employer is $25,000.

If you are an eligible employer that has more than one payroll program (RP) account, you must submit all payroll information on separate web forms. You must submit all those web forms together, making sure that the total is not more than the maximum subsidy per employee and/or maximum subsidy per employer. If you have not reduced your payroll remittances during the year, you can still calculate the TWS on remuneration paid during the identified period and submit the application form(s) at the end of the year.

For the TWS, you are considered to have remitted an amount to the CRA that is equal to the amount of the subsidy. Since this amount forms part of your payroll remittance, the CRA will use the information on this form to reconcile the subsidy on your payroll program account. This will ensure that you do not receive a discrepancy notice.

Canada Emergency Business Account (CEBA) - On October 9, 2020 the interest-free loan available to businesses and not-for-profits was increased from $40,000 to $60,000, and a portion of this is forgivable if repaid by December 31, 2022.  The application deadline is December 31, 2020.  Business owners can apply for support from CEBA through their banks and credit unions.

Other Programs Available To Entrepreneurs:

  • Loan Guarantee for Small and Medium-Sized Enterprises
  • Canada Emergency Commercial Rent Assistance (CECRA)
  • Canada Emergency Rent Subsidy (CERS) (Announced October 9, 2020)
  • Support for Black-led or black-owned businesses through the National Ecosystem Fund, the Black Entrepreneurship Loan Fund
  • Support for Young Entrepreneurs through Futurpreneur Canada
  • Support for Women entrepreneurs through the Women Entrepreneurship Strategy.

Each of these programs require special attention and care, to qualify and apply.  For assistance please contact us.