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.