The federal government has recently announced updates on four major programs for businesses impacted by the COVID-19 pandemic.
1. Canada Emergency Business Account (CEBA)
This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
2. Canada Emergency Commercial Rent Assistance Program (CECRA)
This program provides relief for small businesses experiencing financial hardship due to COVID-19. It is a program that property owners and tenants must work together on to access the funds.
The government is saying this will be the final extension of the rent assistance program and has also indicated it will “explore options to support small businesses as they face ongoing challenges of the COVID-19 pandemic – including the challenges of fixed costs at a time when health concerns and
precautions prevent many businesses from operating at full capacity."
The Canadian Chamber of Commerce says, “Main street businesses need to know what comes next, and they need to know now, as patios close and foot traffic diminishes with cooler weather. Businesses need to know what help will be available to get them through this period of reduced revenues amid continued government restrictions.”
3. Business Credit Availability Program (BCAP)
Up to $12.5 million for your operational cash flow requirements, co-financed by BDC and your primary
financial institution. The focus is on commercial loans and flexible terms if required.
4. Canada Emergency Wage Subsidy (CEWS)
As a Canadian employer who has seen a drop in revenue due to COVID-19, you may be eligible for a subsidy to cover part of your employee wages, retroactive to March 15. This subsidy will enable you to re-hire workers, help prevent further job losses, and ease you back into normal operations.