Today, the Government of Canada announced new and expanded COVID-19 support measures including:
Canada Emergency Business Account (CEBA)
An additional interest-free loan of up to $20,000 will be available (in addition to the original CEBA loan of $40,000). Half of this additional financing would be forgivable if repaid by December 31, 2022;
The application deadline for CEBA is being extended to December 31, 2020; and
Further details, including the launch date and application process, will be announced in the coming days.
An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
Canada Emergency Wage Subsidy (CEWS)
The program will be extended until June 2021; and
The subsidy would remain at the current (Period 8) subsidy rate of up to a maximum of 65% of eligible wages until December 19, 2020. The maximum was previously set to decline to 45% for period 9 (based on November wages).
Canada Emergency Rent Support (CERS)
The new Canada Emergency Rent Subsidy (CECRA has ended) provides rent and mortgage support until June 2021;
The rent subsidy would be provided directly to tenants, while also providing support to property owners;
The new rent subsidy would support businesses that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65% of eligible expenses until December 19, 2020;
Businesses would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020; and
A top-up Canada Emergency Rent Subsidy of 25% for businesses temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65% subsidy.
Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.
Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.