Corporate Assistance Programs

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Updated: September 23, 2022

Corporate Assistance Programs

Note: Most of the programs presented have ended or are near the end of their duration. Some of these still take applications for a limited amount of time after the announced application deadline.

 

BDC - Business Development Corporation

Program Status: Ended.

Applicants who repay the balance of the loan before December 31, 2023 can receive loan forgiveness of up to $20,000.

For more information, click here.

 


 

Update: January 12, 2022 - Repayment  deadline extension - update

On January 12, 2021, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, and the Minister of Small Business, Export Promotion and International Trade, the Honourable Mary Ng, announced that the deadline for CEBA loans to qualify for partial loan forgiveness will be extended by two years from 31 December 2022 to 31 December 2023. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000). Outstanding loans would convert to two-year term loans with a 5% interest rate commencing on January 1, 2024, with the loans due by December 31, 2025.


 

September 23, 2020 expansion & extension of the CEBA


On September 23, 2020, the federal government announced the following updates to the program:

  • If half of the loan is repaid by December 31, 2022, half of the loan interest will be forgiven.
  • The loan amount increased to $60 000. An additional interest-free loan of $20 000 was added in addition to the original amount of 40 000$.
  • The deadline for an application to the CEBA is extended to December 31, 2020.


More details to follow in the coming weeks.

 


 

June 30, 2021 - the deadline has passed - update


The application period of the CEBA program ended on June 30, 2021. The deadline for participants to submit additional information until September 10, 2021. New applicants can no longer apply for a CEBA loan of $60,000 or the expansion of $20,000 at their financial institution.

 


 

March 22, 2021 - announcement of the CEBA application until June 30, 2021.


On March 22, 2021, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, and the Minister of Small Business, Export Promotion and International Trade, the Honourable Mary Ng, announced that the deadline for the new Canada Emergency Business Account (CEBA) applications is being extended from March 31 to June 30, 2021.

 


 

December 4, 2020, CEBA applications under the extended CEBA loan program are open

 

Two financing programs are available through the BCAP

  1. Canada Emergency Business Account
  2. SME Loan and Guarantee Program

Both programs are administered by private-sector financial (banking) institutions.
In order to be eligible, your business must have been impacted directly or indirectly by recent events and have been financially viable prior to the impact of COVID-19.

 

Canada Emergency Business Account (CEBA)

  • Loan up to $60 0000
  • A business operating account at a participating financial institution.
  • Applicants have until March 31, 2021, to apply for a $60 000 loan or the $20 000 expansion.
  • A Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
  • To qualify, organizations are required to demonstrate that they paid between $20,000 and $1.5 million in total payroll in 2019, based on their 2019 T4SUM Summary of Remuneration Paid.
  • Incurred eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable.
  • The applicant must have the intention to continue operations.
  • To qualify, the applicant must agree to participate in post-funding surveys conducted by the Canadian Government.
  • The deadline for an application to the CEBA program is extended to December 31, 2020.
  • Available through your primary financial institution (bank).

 

Application procedure
Both the Canada Emergency Business Account and SME Loan and Guarantee program will be administered by private-sector financial institutions (banks).


The application process contains 2 streams:

  1. The Payroll Stream (applicants who paid between $20,000 and $1.5 million in total payroll in 2019)
  2. The Non-Deferrable Expense Stream (applicants with a total income of $20,000 or less in the calendar year 2019)

 

Conditions for the Non-Deferrable Expense Stream:

  • The applicant will have to demonstrate having Non-Deferrable Expenses between $40,000 and $1.5 million in 2020.
  • For "Non-Deferrable Expenses" to be considered eligible, these should already exist and have been created in January and/or February 2020 or have been created by a legal or contractual obligation as of March 1, 2020, and cannot be avoided or postponed beyond 2020 even during shutdown due to COVID-19 and revenues have decreased.
  • Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, insurance, business utilities, schedule payments for debt service, payments for agreements with independent contractors, fees to maintain licenses, payments for materials used to produce a product, wages and other employment expenses to independent (arms’ length).
  •  Variable operating costs are not financed or supported under these criteria.

 

CEBA Specification of the Forgivable portion.
The CRA confirmed details concerning that income is included in the portion of the interest-free loan. It should be included:

  • Your business is temporarily closed
  • The part of the loan that is forgivable is included in the income of the year in which the loan is received by virtue of paragraph 12(1)(x).
  • However, as CEBA funds are to be used to pay for non-deferrable operating expenses of the business including payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, the recipient can elect to reduce the amount of outlay or expense under subsection 12(2.2) as opposed to reporting the amount as an income inclusion.
  •  If the amount is repaid, a deduction can be claimed at the time of repayment.
  • If the loan is repaid by or before December 31, 2022, the applicant can receive a 33 percent loan forgiveness (up to $20,000).

 

For more details click here.

 

Local Lockdown Program

Program Status: Ended.

Program deadline: May 7, 2022.

Claims for wage and rent subsidies after the application deadline of May 7, 2022, are no longer applicable. Some claim periods are still open until their respective deadline. For each period, you have to make sure you're eligible. Please note that this program has different eligibility conditions depending on the period of application.

  • Period 24: Dec 19, 2021 to Jan 15, 2022 - Deadline: Jul 14, 2022
  • Period 25: Jan 16 to Feb 12, 2022 - Deadline: Aug 11, 2022
  • Period 26: Feb 13 to Mar 12, 2022 - Deadline: Sept 8, 2022
  • Period 27: Mar 13, to Apr 9, 2022 - Deadline: Oct 6, 2022
  • Period 28: Apr 10 to May 7, 2022 - Deadline: Nov 3, 2022

For more information, click here.


Note: Businesses can apply for support up to 180 days after the end of the claim period for which they are applying.

 


 

On December 22, 2021, Chrystia Freeland, the federal Minister of Finance, announced the introduction of Bill C-2. Which includes the new Local Lockdown Program for businesses facing closure due to COVID-19 through the wage and rent subsidy programs. 

 

Eligible companies:

  • Your business is temporarily closed
  • If your business is subject to capacity-limiting orders at 50% or more (one or more locations)
  • If your activities that are restricted account for at least 50% of your total qualifying revenue 
  • Reduction of your current-month revenue of 25%
  • Business in all industry sectors
  • Social economy enterprises (including cooperatives and non-profit organizations that are involved in commercial activities)

 

Wage and Rent Subsidy rates under Local Lockdown Program 

Current Month Revenue Decline

 

Period 24-25: Dec 19 2021 – Feb 12, 2022

 

75% and over

75%

25 - 74% 

Revenue decline

e.g. 50% decline = 50% subsidy rate

0 - 24%

0%

 

For more information on the application process, click here. 

 

 

 

Tourism and Hospitality Recovery Program (THRP)

Program Status: Ended.

Program deadline: May 7, 2022.

Claims for wage and rent subsidies after the application deadline of May 7, 2022, are no longer applicable. Some claim periods are still open until their respective deadline. For each period, you have to make sure you're eligible.

  • Period 24: Dec 19, 2021 to Jan 15, 2022 - Deadline: Jul 14, 2022
  • Period 25: Jan 16 to Feb 12, 2022 - Deadline: Aug 11, 2022
  • Period 26: Feb 13 to Mar 12, 2022 - Deadline: Sept 8, 2022
  • Period 27: Mar 13, to Apr 9, 2022 - Deadline: Oct 6, 2022
  • Period 28: Apr 10 to May 7, 2022 - Deadline: Nov 3, 2022

For more information, click here.

 

Note: Businesses can apply for support up to 180 days after the end of the claim period for which they are applying.

 


 

On December 22, 2021, Chrystia Freeland, the federal Minister of Finance, announced the introduction of Bill C-2. The Tourism and Hospitality Recovery Program and the Hardest Business Recovery Program. This promotes support for rent and wage support. This new program is entitled to support businesses that are also not part of the tourism, hospitality, arts, entertainment, and recreation sectors. This program now offers support to the following organizations:

 

Eligibility:

  • Your business is temporarily closed
  • To business regardless of their sectors
  • If you have a claim period of at least 40% 
  • Be the subject of a Ministerial Order to close for at least 7 days in the claim period.
  • If your activities are restricted and account for at least 25% of your total eligible revenue for the claim period. 
  • Must at least have a 40% revenue drop for the current period compared to the reference period

 

For more information on the application process, click here. 

 

 

 

 

Hardest-Hit Business Recovery Program

Program Status: Ended.

Program deadline: May 7, 2022.

Claims for wage and rent subsidies after the application deadline of May 7, 2022, are no longer applicable. Some claim periods are still open until their respective deadline. For each period, you have to make sure you're eligible.

  • Period 24: Dec 19, 2021 to Jan 15, 2022 - Deadline: Jul 14, 2022
  • Period 25: Jan 16 to Feb 12, 2022 - Deadline: Aug 11, 2022
  • Period 26: Feb 13 to Mar 12, 2022 - Deadline: Sept 8, 2022
  • Period 27: Mar 13, to Apr 9, 2022 - Deadline: Oct 6, 2022
  • Period 28: Apr 10 to May 7, 2022 - Deadline: Nov 3, 2022

For more information, click here.


Note: Businesses can apply for support up to 180 days after the end of the claim period for which they are applying.

 


 

On October 21, 2021, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that for businesses that continue to face post-pandemic challenges, there are 2 streams available for support. The Tourism and Hospitality Recovery Program and the Hardest Business Recovery Program. This promotes support for rent and wage support.

 

Eligibility:

  • Canadian-controlled private corporations (CCPCs) A 50% or greater reduction in monthly revenue over the first 12 months of the Canada Emergency Wage Subsidy (12-month revenue decline).
  • A current-month revenue loss of at least 50 percent.

 

 

Period 22 - 26

Oct 24, 2021 - Mar 12, 2022 

Period 27-28

Mar 13 - May 7 2022 

Currently month revenue decline    
75% and over

 50% 

 25% 
50% - 74%

10% + (revenue decline – 50%) x 1.6

e.g., 10% + (60% revenue decline – 50%) x 1.6 = 26% subsidy rate

5% + (revenue decline – 50%) x 0.8

e.g., 5% + (60% revenue decline – 50%) x 0.8 = 13% subsidy rate

0% -49%

0%

0%

 

 

The subsidy:

  • The maximum rate is 50% from October 24, 2021, to March 12, 2022.

 

The calculation:

The subsidy rate would start at 10 percent for businesses with a 50 percent revenue decline in the current month, increasing to 50 percent for businesses with a 75 percent or higher revenue decline. The rent and subsidy rates would be reduced by half from March 13 to May 7, 2022.

Additional support will be given to municipalities and cities experiencing lockdown support.

 

For more information click here.

 

 

Canada  Recovery Hiring Program (CRHP)

Program status: Ended. 

Program deadline: May 7, 2022.

Claims for wage and rent subsidies after the application deadline of May 7, 2022, are no longer applicable. Some claim periods are still open until their respective deadline. For each period, you have to make sure you're eligible.

  • Period 24: Dec 19, 2021 to Jan 15, 2022 - Deadline: Jul 14, 2022
  • Period 25: Jan 16 to Feb 12, 2022 - Deadline: Aug 11, 2022
  • Period 26: Feb 13 to Mar 12, 2022 - Deadline: Sept 8, 2022
  • Period 27: Mar 13, to Apr 9, 2022 - Deadline: Oct 6, 2022
  • Period 28: Apr 10 to May 7, 2022 - Deadline: Nov 3, 2022

For more information, click here.


Note: Businesses can apply for support up to 180 days after the end of the claim period for which they are applying.

 


 

Nov 24, 2021: Program Update - End of CEWS Program

On November 24, Chrystia Freeland, the federal Minister of Finance, announced the proposed introduction of Bill C-2. The Canada Recovery Hiring Program (CRHP) is extended and replaces the CEWS and CERS. Support will be available through three new streams:

  1. Tourism and Hospitality Recovery Program
  2. Hardest-Hit Business Recovery Program
  3. Local Lockdown Program

 

More details to come by December 2021.

 

For more information about the announcement. Click here. 

 

Current Claim Periods:

  • Period 17: June 6, 2021 – July 3, 2021 
  • Period 18: July 4, 2021 – July 31, 2021 
  • Period 19: Aug. 1, 2021 – Aug. 28, 2021 
  • Period 20: Aug. 29, 2021 - Sept. 25, 2021 
  • Period 21: September 26, 2021 - October 23, 2021
  • Period 22: October 24, 2021 - November 20, 2021 - Not open. 

 

Deadlines for claim periods:

  • Period 17: December 30, 2021
  • Period 18: January 27, 2022
  • Period 19: February 24, 2022
  • Period 20: March 24, 2022
  • Period 21: Not open. 

 

Subsidy rates for the Periods 17 to 22:

 

 

Period 17: June 6 – July 3

 

 

Period 18: July 4 - July 31 

 

 

Period 19: August 1 - 28

 

 

Period 20: August 29 - Sept 25

 

 

Period 21: Sept 26 - October 23

 

 

Period 22: October 24 - November 20

 

Subsidy

Rate

50% 50% 50% 40% 30% 20%

 

For more information of the details of the program click here.

 

 


 

October 21, 2021 Government Update 

On 21 October 2021, Chystia Freeland, deputy prime minister and finance minister, announced the extension of the Canadian Recovery Hiring Program. The following changes will be applied: 

  • A new rate of 50% from Nov 20, 2021, to May 7, 2022, up to an extension until July 2, 2022.
  • The existing baseline period and eligibility rules remain the same.

 

For more information click here.

 

 


 

June 2, 2021 Government Update 

On June 2, 2021, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, and the Minister of Small Business, Export Promotion and International Trade, the Honourable Mary Ng, announced that the new Canada Recovery Hiring Program would be available commencing June 6, 2021. This program works similarly to the CEWS program. The government allows the participants to claim the greatest benefit according to the period.

The details about the program are the following: 

Eligible employers 

  • Canadian-controlled private corporations (CCPCs)
  • Non-profit organizations 
  • Registered Charities 
  • Certain Partnerships 
  • Must have an open account with the CRA as of March 15, 2020
  • Revenues must be decline by 10% or over 

 

Eligible employees 

  • Not available for furloughed employees 
  • Must be employed in Canada throughout a qualifying period 

 

Key Elements 

  • This program is designed similarly to the CEWS program
  • Must choose between the CRHP or CEWS for a each claim period 
  • The application must be filed no later than 180 days after the end of a qualifying period
  • The same approach (General or Alternative Approach) as CEWS must be used to calculate revenue decline
  • The applicant must meet a decline in revenue test relevant to the periods

 

The Subsidy Amount

Employers will compare the amount of money they paid to their workers in March, April, May and June of last year with the amount they paid in July, August, September and October of this year. The subsidy rate for the qualifying period is then multiplied to determine the subsidy amount.

  • The maximum remuneration is $1 129 per employee
  • For a non-arm’s length employee for a week cannot exceed the “baseline remuneration”

 

The Revenue Decline Threshold

  • Period 17: greater than 0% 
  • Period 18 - 22: greater than 10% 

 

Recovery wage subsidy rates for the Periods 17 to 20:

 

 

Period 17: June 6 – July 3

 

 

Period 18: July 4 - July 31 

 

 

Period 19: August 1 - 28

 

 

Period 20: August 29 - Sept 25

 

 

Period 21: Sept 26 - October 23

 

 

Period 22: October 24 - November 20

 

Recovery Wage Subsidy 50% 50% 50% 40% 30% 20%

 

 

For more information click here. 

 


 

April 19, 2021, Government Update

On April 19, Chrystia Freeland, the federal Minister of Finance, announced the proposed following changes in the Canadian 2021 budget. She announced the introduction of a new program called the New Canada Recovery Hiring Program (CRHP). This new proposed program is an alternative to the CEWS and, to encourage recruitment, certain employers can claim. Key features of the program are:

Eligible employers: 

  • Canadian-controlled private corporations (CCPCs)
  • Individuals 
  • Non‑profit organizations
  • Registered charities
  • Certain partnerships.

Duration: 

  •  6 periods - from June 6 and November 20, 2021

Key elements: 

  •  The incremental remuneration increases at 50 percent in the first three years, which would fall to 40 percent, 30 percent and 20 percent in the last three years.
  • Eligible weekly remuneration is limited to $1,129 per eligible employee.
  • The CEWS revenue decline test would apply to determine qualification, along with other conditions.

More details to come. 

For more information click here. 

 

 

 

Work-Sharing Program

Program duration: September 24, 2022. 

Work-Sharing is a program to avoid lay-offs when there is an uncontrollable temporary decrease in business activity. The program provides EI benefits to eligible employees who agree to reduce their normal working hours.

 

To be eligible, your business must:

  • Be a year-round business in Canada for at least 1 year
  • Be a private business, a publicly held company or a not-for-profit organization, and
  • Have at least two employees in the work-sharing unit

 

To be eligible for work-sharing benefits, your employees must:

  • Be year-round, permanent, full-time or part-time employees needed to carry out the day-to-day functions of the business (“core staff”)
  • Be eligible to receive EI benefits, and
  • Agree to reduce their normal working hours by the same percentage and to share the available work

 

 

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