Government Support Programs for Canadian Businesses During COVID-19
The Segev team is wishing you well during these challenging times.
We are working remotely, but we are still at work. We’ve compiled a list of Canadian Government relief and assistance programs available that we’d like to share with you (and please feel free to share with others!).
The following measures have been announced, though many details are still forthcoming and additional measures may be put forward by the government as the situation evolves:
- To help prevent layoffs, the government announced a measure that would provide businesses struggling with the economic impact of COVID-19 with a subsidy equal to 10 per cent of employee wages, up to $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
- The government is allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
- The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
- The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.
- A new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada.
- The government pledged to expand Export Development Canada’s ability to provide support to domestic businesses.
- There will be increased flexibility on the Canada Account limit, to allow the Government to provide additional support to Canadian businesses, when deemed to be in the national interest, to deal with exceptional circumstances.
- The government will launch an Insured Mortgage Purchase Program to purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). This will provide stable funding to banks and mortgage lenders and support continued lending to Canadian businesses and consumers. The Government will enable these measures by raising CMHC’s legislative limits to guarantee securities and insure mortgages by $150 billion each.
- The six largest financial institutions in Canada have made a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges, such as pay disruption due to COVID-19, childcare disruption due to school or daycare closures, or those suffering from COVID-19. This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
- Parliament is expected to be recalled imminently to pass the legislative approvals needed to enact the measures announced in response to this rapidly evolving health crisis.
If you have any questions or require any assistance, don’t hesitate to contact the Segev team with offices in Vancouver and St Louis (USA):
toll free: 1-800-604-1312
Business hours are Monday to Friday from 9am – 5pm