1. The Government of Canada published Canada’s COVID-19 Economic Response Plan and offers a number of reliefs for Canadian Small Business. The full information is published on Government of Canada website at https://www.canada.ca/en/department-finance/economic-response-plan.html. Here are some programs that we tested.
2. Business Development Canada (BDC) offers loans for small business. For a loan up to $100,000.00 you can apply online. We were advised that the underwriting requirements are not very stringent. Loans over $100K are also available but the underwriting process is more formalized and the business owner would have to work with BDC representative. Our firm tested the loan application process online applying for a $100,000.00 loan and we confirm that the application process is fairlystraightforward.
3. Canada Emergency Business Account of $40K – this is the new program. It is so new that currently there is no information about how to apply but the program will be processed through the banks. You need to keep on following up with your banker on this. The information about the program is under https://www.canada.ca/en/department-finance/economic-response-plan.html. We are monitoring the site and will update our blog as soon as new information is available.
4. Business Credit Line Availability. This is a credit facility program that BDC is creating with the banks to provide the business owners with much needed liquidity during the crises. The program information is also posted on the Government of Canada website, as above. The program is scheduled to launch 3 week after March 27, 2020. We are monitoring the website and will provide new information as soon as it is available. In the meaning keep on checking with your bank representative.
5. The wages subsidies program, for wages paid from March 18 to June 20. The website is the same as above is also posted on https://www.canada.ca/en/department-finance/economic-response-plan.html. The application process is still not available yet but so far it seems that the details of the program are quite complex. We are monitoring the informantion and will keep you posted as the new information becomes available online.
6. Tax reductions/tax deferral programs. CRA allows more time for filing and paying the income tax. The business returns may be filed up to August 31, 2020, without penalties or interests. The HST remittance and payment is deferred to June 30, 2020. The full details of the program are posted on the Government of Canada website, as above. We will post new information, if these dates change.
If you have information about other programs to assist the small business community, please do not heisted to contact us through our website and we will post the information.
Be safe and keep healthy,