The new Canada Emergency Wage Subsidy, according to Department of Finance Canada, will "provide a 75 per cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020. This wage subsidy aims to prevent further job losses, encourage 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. While the Government has designed the proposed wage subsidy to provide generous and timely financial support to employers, it was done with the expectation that employers will do their part by using the subsidy in a manner that supports the health and well-being of their employees."
Individuals, and all sizes of for-profit companies and partnerships and non-profit organizations/charities are eligible if they "see a drop of at least 30 per cent of their revenue" and can attest as such.
According to a press release, "An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered."
More details, including eligibility, revenues covered and process for application, are at this DFC website.
The Canadian government is also:
- Deferring "Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020";
- Suspending audits, and collections on new debt;
- Launching the new Canada Emergency Business Account, a "$25 billion program will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus";
- Guaranteeing new operating credit for small and medium businesses wth a new locan program; and
- Setting up a new co-lending program "to provide additional liquidity support for Canadian businesses."
Royal Bank of Canada is getting customers ready for the new CEBA loans.
The Canadian Chamber of Commerce is building a "business resiliance" website to assist companies.
The Business Development Bank of Canada suggests "7 steps to sustain your business through the disruption" and RSM suggests "How business owners can help weather the fallout of COVID-19."
A new report from Innovation Policy Lab "assesses the perspective of Canadian technology scale-ups: what is their top economic concern and what do they think about the federal support being offered? Further, what do they think about the government response overall? Is there anything more that the government should do to support scale-ups?"
This information is not intended and should not be construed as or substituted for legal advice. It is provided for informational purposes only. It is advisable to consult with private counsel on the precise scope and interpretation of any laws/regulation/legislation and their impact on your particular business.