May 5, 2020
In light of the COVID-19 pandemic, the federal and provincial government have developed numerous programs and made various amendments to existing programs, to assist in bringing relief and support to affected businesses and individuals.
To make the process even easier for those seeking assistance, we’ve prepared a brief summary of the funding sources available to tech and video game companies including information on how to access these sources.
Government Funding for Canadian Businesses
- Available to all businesses, non-profits and charities who have experienced a 30% decline or more in revenue due to the COVID-19 pandemic.
- Covers up to 75% of a salary on the first $58,700, or as much as $847 a week, retroactive to March 15.
- The 75% subsidy does not replace the 10% wage subsidy originally introduced a few of weeks ago. Small businesses concerned they do not meet the criteria for the 75% are still able to apply for the 10% subsidy.
- Click here for more information on the CEWS.
- The federal government is providing rent relief to businesses that can’t afford to pay their landlords at a time when their operations are seriously curtailed or shut down due to the COVID-19 pandemic.
- The CECRA program lowers rent by 75% for affected small businesses and will be provided in partnership with the provinces and territories,
- Affected small business tenants are those paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues.
- The program is also available to charities and non-profit organization
- Click here for more information on the CECRA.
- Small businesses that have been forced to close due to COVID-19 may be eligible to have their business’ electricity use charges waived for up to three months.
- Businesses that are not eligible for the relief fund but have been otherwise affected by COVID-19 may be eligible for interest-free bill deferrals and payment plans.
- Call 1-800-BC-HYDRO for more information.
- The CRA will allow business to defer certain GST/HST payments until the end of June 2020, with no penalties.
- Click here for more information on CRA payment deferrals and deadlines.
- More than $10 billion will be available to Canadian businesses for financing and credit insurance solutions through Export Development Canada and the Business Development Bank of Canada.
- Click here for Export Development Canada.
- Click here for Business Development Bank of Canada.
- Prime Minister Trudeau announced the federal government would cover 100% of wages for students hired via this program.
- The announcement also includes an extension to the employment end date, and changes to allow adaptations to support essential services and part-time employees.
- Click here for more details.
- Loans of up to $40,000 are available for eligible small businesses and not-for-profits, interest-free for one year.
- Businesses interested in the CEBA program should inquire through their current financial institutions.
Segev LLP is a full-solutions business law firm recognized worldwide as a leading online gaming and betting law firm, and having an expertise in technology, commercial, regulatory, compliance, finance and securities law. If you have any questions or would like more information regarding any of the above, feel free to reach out to technology and esports lawyer Marius Adomnica at [email protected]
The above blog post is provided for informational purposes only and has not been tailored to your specific circumstances. This blog post does not constitute legal advice or other professional advice and may not be relied upon as such. If you require legal advice, you should contact a qualified lawyer.