COVID-19 Information for Employers, Employees & Business Owners
Table of Contents
***NEW – INNOVATION CANADA***
Note: Many of these programs are awaiting approvals at different levels of government. We will be updating our website accordingly.
LAST UPDATED: 2020-04-16 at 1:36 PM
In response to the COVID-19 pandemic, the municipal, provincial and federal governments have put measures in place to protect the public. Thanks to Oliver Hierlihy and Waterfront BIA, a list of active and announced government programs and resources are posted below to support businesses and their workers during the COVID-19 pandemic response. We encourage members to rely on government sources to ensure that information is up-to-date and correct.
Several SCAMS links are being sent in the form of texts and emails. DO NOT click on any of these links or give out Banking/Credit Card information, Social Insurance Number or any personal information. Delete these texts and emails immediately. Members are encouraged to rely on the following three government sources to ensure that information is up-to-date and correct.
02 – UPDATED! 16/04/2020 Canada Emergency Business Account: loans of $40,000 guaranteed by the government for qualifying small businesses and not-for-profits to help cover their operating costs. These loans will be interest-free for the first year and will be offered through qualified major Canadian Banks. Businesses that repay the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
To qualify for the Canadian Emergency Business Account, businesses and not-for-profits will need to demonstrate that they have paid between $20,000 to $1.5 million in total payroll in 2019.
Small businesses and not-for-profits should contact their financial institution to apply for these loans.
More information to follow
Status: Contact your Bank
Provided by: Provided by: Federal Government via the Bank of Canada, Office of the Superintendent of Financial Institutions, Major Canadian Banks.
Beneficial to: Businesses
03 – Updated! 24/04/2020 Canada Emergency Commercial Rent Assistance (CECRA): will cover 75% of the cost of commercial rent for the months of April (retroactive), May (retroactive) and June for businesses whose rent is lower than $50,000 per month and can demonstrate a 70% loss in revenue. This program is expected to be available for application in mid-May and will be made available through the Canadian Mortgage and Housing Corporation (CMHC) in partnership with each of the provinces.
It was indicated in the Prime Minister’s announcement that additional programs will be announced for larger business tenants.
From the news release:
The program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.
Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
More information to follow Announcement: Canada Emergency Commercial Rent Assistance (CECRA)
Ontario Provides Urgent Relief for Small Businesses and Landlords
NEW! 16/04/2020 Canada Emergency Commercial Rent Assistance (CECRA): will provide some form of rent relife to small businesses for the months of April, May and June 2020. This program will be enacted in partnership with the provinces and territories.
More information to follow
Status: Coming Soon
Provided by: Federal Government in partnership with the Provincial Government
Beneficial to: Businesses
04 – UPDATED 2020/04/13 The Canadian Emergency Wage Subsidy – Temporary 75% wage subsidy.
A subsidy equal to 75% of employee remuneration paid for businesses with any number of employees that can demonstrate that their business revenues have decreased by at least 30% due to COVID-19 as compared to the prior year or compared to January and February and 15% for the month of March 2020. These subsidies will be retroactive to Saturday, March 15, 2020, and will cover up to 75% on the first $58,700 that employees earn, – $847 per week. Employers are encouraged to cover the additional 25% of employees salaries if they are able. Applications for the Canadian Emergency Wage Subsidy will be available through the Canada Revenue Agency My Business Account. This benefit received Royal Asset on April 11, 2020.
Note 1: Employees who receive the Canadian Emergency Wage Subsidy (CEWS) – 75% temporary wage subsidy will not qualify to receive the Canadain Emergency Response Benefit (CERB).
Note 2: It has been clarified that Bars, Restaurants, Charities, not for profits, and non-publically funded businesses will qualify for the Canadian Emergency Wage Subsidy
Note 3: Seasonal Businesses will be required to show that they experienced a 30% reduction of their revenue in March, April or May, when compared to the same month in 2019.
Note 4: Funds will be transferred by the CRA directly to retailer’s bank account to fund payroll; however this may take time to occur, so businesses may need to contact their financial institution to bridge-finance payroll until the funding is received ***
Note 5: The system does not require employers to pay the additional 25% of employees wages if they are unable, but are strongly encouraged to and will be required to attest that they have made their best efforts to do so ***
Note 6: The wage subsidy will be treated as revenue to businesses and as taxable income to employees. ***
Primary Source:
- Government of Canada, Department of Finance: https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html
- Government of Canada,Additional Details on the Canada Emergency Wage Subsidy: https://www.canada.ca/en/department-finance/news/2020/04/additional-details-on-the-canada-emergency-wage-subsidy0.html
Helpful Secondary Source:
- Retail Council of Canada: https://www.retailcouncil.org/community/finance-and-taxation/wage-subsidy-details-hugely-important-for-retailers-and-retail-employees/ ***
Status: Soon
Provided by: Canada Revenue Agency
Beneficial to: Businesses
05 – Important Updated 2020/04/23 Canada Emergency Response Benefit (CERB):
Are self-employed small business owners eligible for the Canada Emergency Response Benefit?
Yes provided they meet the eligibility criteria including that they stopped working due to COVID-19 and do not earn more than $1000 in a period of at least 14 consecutive days in the first benefit period and for the entire four-week benefit period of any subsequent claim.
Small Business owners can receive income from their business in different ways, including as salary, business income or dividends. In determining their eligibility for the Canada Emergency Response Benefit:
- Owners who take a salary from their business should consider their pre-tax salary;
- Owners who rely on business income should consider their net pre-tax income (gross income less expenses);
- Owners who rely on dividend income should consider this as self-employment income provided it comes from non –eligible dividends (generally, those paid out of corporate income taxed at the small business rate).
Can someone qualify for Canada Emergency Response Benefit if they still have a small amount of income coming into their business account as a sole proprietor to pay some of their business expenses (commercial rent, utility costs, etc.) as long as they are not paying themselves any income from the business?
Yes. To be eligible for the Canada Emergency Response Benefit, you must have stopped working as a result of reasons related to COVID-19 and receive less than $1,000 in employment or self-employment income for at least 14 consecutive days within the initial four-week period for which you apply. For subsequent periods, you cannot receive more than $1,000 in employment or self-employment income for the entire four-week period
https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html
Updated 2020/04/02 Canada Emergency Response Benefit (CERB): The benefit will provide $2000 / month for the next four months for workers who are not getting a paycheque because of COVID-19. To qualify the person must have received at least $5,000 in employment income and have no income form employment or self-employment for at least 14-days in a row. This includes:
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Persons who have lost their job due to COVID-19Persons who are contract workers who can no longer work due to COVID-19Persons who are Self-employed who can no longer work due to COVID-19 (such as independent small business owners)Persons who are sick or in quarantine and not receiving a salary due to COVID-19Persons who are looking after someone who is ill due to COVID-19Persons who are looking after children due to school & daycare closers caused by COVID-19Persons who are employed but are not receiving an income due to COVID-19 disruptions (Such as employees of non-essential businesses)
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Note 1: Employees who receive the Canadian Emergency Response Benefit (CERB) can not also receive the Canadian Emergency Wage Subsidy (CEWS) – temporary 75% wage subsidy.
Note 2. Early indications suggest that CERB will be an extremely flexible program to assist small businesses in maintaining their staffing – allowing employees to continue working while receiving the CERB benefit, with the opportunity for employers to top-up their workers’ compensation beyond the $2,000 that is provided to them by CERB. We will provide updates on this program as they become available. **
Note 3: Application portals are expected to be launched on April 6, 2020 through CRA MyAccount secure portal; My Service Canada Account, or by calling a toll free number equipped with an automated application process. Application dates will be staggered by birth-month in order to prevent the application system from being overwhelmed. More info. Applicants will receive funding within 10-days of applying. The CERB benefit will be paid every four weeks and will apply for the period of March 15, 2020, to October 3, 2020.
Note 4: Employees who have been laid off and have applied for Employment Insurance (EI) will automatically be move over to receive the CERB benefit first.**
More Information: https://www.canada.ca/en/services/benefits/ei/cerb-application.html
Helpful Secondary Sources:
Status: Expected For April 6, 2020
Provided by: Federal Government
Beneficial to: Workers, Business Owners
** denotes information from trusted, non-official sources
06 – NEW! 27/03/2020 SME Loan Guarantee Programs: For small and medium sized enterprises (SMEs) that need additional support can apply for guaranteed loans through their financial institutions to help them weather the impacts of COVID-19. These loans, which will be supported through the Export Development Canada (EDC) and Business Development Bank (BDC) are intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements. These two programs are outlined below:
A. BDC Co-Lending Program for Small and Medium Enterprises: The Business Development Bank of Canada, together with major financial institutions, will co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts up to $6.25 million BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers. The potential for lending for this program will be $20 billion.
B. EDC Loan Guarantees. Small and Medium Enterprises (SMEs) can apply through their financial institutions to get operating credit and cash flow term loans up to $6.25 million, which will be guaranteed by the Export Development Canada (EDC). The program cap for this new loan program will be a total of $20 billion for export sector and domestic companies.
Status: Coming Soon
Provided by: Federal Government via the Export Development Canada and the Business Development Bank of Canada
Beneficial to: Businesses
07 – NEW! 27/03/2020 Deferral of Sales Tax Remittance (HST and GST): The Federal Government will be deferring the Goods and Services Tax / Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30,2020.
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- Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
- Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
- Annual filers, whose GST/HST return or installment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.
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More information to follow
Status: Available immediately
Provided by: Federal Government via the Canadian Revenue Agency
Beneficial to: Businesses
08 – Small Business Tax Deferral: The CRA will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 19, 2020 and before September 2020.
https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Businesses
Status: Available
Provided by: Federal Government via Canada Revenue Agency
Beneficial to: Businesses
09 – NEW! 2020/03/25 Deferral of Business Education Tax Payments (Commercial Property Tax) The province announced that it will defer the quarterly municipal remittance of the business education property tax to school boards by 90 days. This will allow municipalities to also provide property tax deferrals to businesses while ensuring school boards continue to receive their funding.
https://news.ontario.ca/mof/en/2020/03/ontarios-action-plan-responding-to-covid-19.html
Status: Announced
Provided by: Provincial
Beneficial to: Businesses
10 – NEW! 2020/03/25 Provincial Tax Relief: The province announced that it will provide five months of interest and penalty relief for businesses to file and make payments for the majority of provincially administered taxes.
https://news.ontario.ca/mof/en/2020/03/ontarios-action-plan-responding-to-covid-19.html
Status: Announced
Provided by: Provincial
Beneficial to: Businesses
11 – NEW! 2020/03/30 Delay of the property tax reassessment by MPAC: The next property valuation to be completed by the Municipal Property Assessment Corporation (MPAC) in 2020 for the 2021 year has been delayed due to the COVID-19 pandemic. As a result, the assessments for the 2021 taxation year will continue to be based on the same valuation date that was in effect for the 2020 taxation year.
https://budget.ontario.ca/2020/marchupdate/annex.html#section-4
Status: Announced
Provided by: Provincial
Beneficial to: Businesses, Property Owners
12 – Grace Period for Municipal Property Taxes: The City of Toronto will provide a grace period for property tax payments and payment penalties for businesses for 60 days, starting March 16, 2020:
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- For businesses on the three-installment payment plan: the April 1 tax due date is extended to June 1, 2020;
- For property owners on the 11-instalment pre-authorized payment plan, the 2020 due dates will be extended by 60 days;
- Late payment penalties are waived for 60 days (as of March 16, 2020).
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Status: Available
Provided by: Municipal Government
Beneficial to:Businesses, Property Owners
13 – Grace Period for Municipal Utility Bills: (Water/Sewer Service and Solid Waste Management charges where applicable): The City is extending the due date for all utility bills issued to businesses by an additional 60 days in addition to the current 21 days to give utility customers an additional 60 days to make payment to take advantage of the early payment discount. https://www.toronto.ca/home/covid-19/economic-support-recovery/economic-support-recovery-for-businesses/
Status: Available
Provided by: Municipal Government
Beneficial to: Businesses, Property Owners
14 – 24-hour Retail Delivery Noise Exemption: All retail businesses are noise exempt from the City’s Noise Bylaw to facilitate after-hour deliveries. Retailers can receive deliveries 24 / 7 to ensure goods remain in stock.
https://www.toronto.ca/home/covid-19/economic-support-recovery/economic-support-recovery-for-businesses/
Status:Available
Provided by: Provincial, Municipal Government
Beneficial to: Businessesures.
15 – Employer obligations for workers infected with COVID-19: Currently under the Occupational Health and Safety Act, if an employer is advised that a worker is ill resulting from an exposure at work (including COVID-19), or a claim has been filed with the Workplace Safety and Insurance Board (WSIB) with respect to COVID-19 exposure at work, the employer must notify the Ministry of Labour, Training and Skills Development in writing within four days. The employer must also notify the workplace joint health and safety committee or a health and safety representative and trade union, if any. https://news.ontario.ca/opo/en/2020/03/employment-standards-amendment-act-infectious-disease-emergencies-2020.html
Status: Available
Provided by: Provincial, Municipal Government
Beneficial to: Businesses
16 – The Employment Standards Amendment Act 2020: Provides job-protected leave for employees who are in isolation or quarantine due to COVID-19, or those who need to be away from work to care for children because of school or daycare closures or to care for other relatives. Retroactive to January 25, 2020, and employees cannot be required to show sick notes. https://news.ontario.ca/opo/en/2020/03/employment-standards-amendment-act-infectious-disease-emergencies-2020.html
Status: Available Retroactive to January 25, 2020
Provided by: Provincial Government
Beneficial to: Workers
17 – Employment Insurance Work Sharing Program: This EI program benefits to workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers, splitting the work between two or more employees. These measures makes it easier for businesses and employees to apply for a work share agreement by extending the eligibility of such agreements to 76 weeks, easing eligibility requirements, and streamlining the application process.
Status: Available
Provided by: Federal Government via Employment Insurance
Beneficial to: Businesses, Workers
18 – Banking Solutions: The Bank of Canada has cut the interest rate to 0.75%, and the Office of the Superintendent of Financial Institutions announced the release of an additional $300 billion in lending capacity by the major banks with the expectation that they will support Canadian businesses and households.
In turn, the big six Canadian banks: Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank 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 closures; or those facing illness from COVID-19.
Status: Available, Case by Case
Provided by: Federal Government via the Bank of Canada, Office of the Superintendent of Financial Institutions, Major Canadian Banks.
Beneficial to: Businesses, Property Owners, Workers
19 – Business Development Bank Financing: Small business loans up to $100,000 that can be obtained in as little as 48 hours, working capital loans, and purchase order financing loans.
Note 1: Businesses are encouraged to seek commercially available financing first as were enabled through the measures put in place through Banking Solutions. Businesses should reference this Government of Canada flowchart prior to applying for BDC financing. http://www.waterfrontbia.com/wp-content/uploads/2020/03/Business-Flowchart-EN.pdf
Note 2: Some businesses such as pubs/ bars/ clubs and marijuana companies, and non-Canadian companies are not eligible to apply.
Status: Available, Existing Program
Provided by: Federal Government via Business Development Bank of Canada
Beneficial to: Businesses
20 – Business Credit Availability Program: Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses.
Status: Coming Soon
Provided by: Federal Government via Business Development Bank of Canada
Beneficial to: Businesses
21 – Employment Insurance (EI) – Regular Benefits: Employees who lose their job through no fault of their own, and have been without work and pay for at least seven consecutive days, and have worked for the required number of insurable hours in the last 52 weeks since their last claim.
Employees who have applied for EI due to COVID-19 related layoffs will be automatically enrolled into recently announced the Canadian Emergency Response Benefit (CERB) program, which they will receive prior to their EI benefits.
Note: individuals should apply for EI as soon as soon as they lose their job, even if their Record of Employment (ROE) is not yet available.
https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
Status: Available immediately, Existing Program
Provided by: Federal Government via Employment Insurance
Beneficial to: Workers
22 – Enhanced Canada Child Benefit: An increase to the Canada Child Benefit (CCB) for the 2019-20 benefit year, by $300 per child.
NOTE: persons who expect to receive the Enhanced Canada Child Benefit are encouraged not to delay the filing of their taxes due to the personal tax filing deferral in order to ensure that their entitlements are properly determined for 2020-21.
Status: Early May
Provided by: Federal Government via the Canada Revenue Agency
Beneficial to: Workers
23 – Enhanced GST Credit for low & modest income families: A one-time special payment to families with low to modest incomes in early May through the Goods and Services Tax Credit (GSTC) providing families with close to $400 for single individuals, and close to $600 for couples.
NOTE: persons who expect to receive the Enhanced GST Credit are encouraged not to delay the filing of their taxes due to the personal tax filing deferral in order to ensure that their entitlements are properly determined for 2020-21.
Status: Available
Provided by: Federal Government via the Canada Revenue Agency
Beneficial to: Workers
24 – Digital Main Street one-on-one support for getting businesses online: During these difficult times we are proud to be offering free digital marketing help, with the support of Digital Main Street.
How does it work?
Work one-on-one with recent Digital Marketing graduate, Michelle. She will listen to your needs and help you reach your objectives.
What can I get help with?
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- Social media
- Getting found on Google
- Website updates
- Digital branding
- Other digital related activities
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How can I learn more?
Learn more about the program here!
How do I get started?
In light of the current circumstance, Michelle is accepting virtual meetings.
Feel free to introduce yourself and book your initial consultation now! Remember, all services offered are free.
SCG BIA members can book their free consultations with Michelle Bali by calling 647-572-5493, or by email: michelle.bal@digitalmainstreet.ca
Status: Available
Provided by: Municipal Government via the Toronto Association of BIA’s
Beneficial to: Businesses
25 – Ontario Providing Electricity Relief to Small Businesses: The provincial government has suspended time-of-use hydro rates for a period of 45-days, holding electricity prices to the off-peak rate of 10.1 cents-per-kilowatt-hour. This discount will be applied automatically for all customers.
Status: Available
Provided by: Provincial Government via the Ontario Energy Board
Beneficial to: Businesses, Workers, Property Owners
26 – NEW! 2020/03/26 – Alcohol and Gaming Commission of Ontario allows for licensees to now sell liquor for takeout or delivery along with food. The AGCO will now allow bar and restaurant licensees to temporarily sell beer, wine and spirits as part of a food order for takeout or delivery. These changes are effective immediately, and last until December 31, 2020.
Status: Available
Provided by: Provincial Government via the AGCO
Beneficial to: Businesses
As a reminder – businesses are advised to check their insurance policies to see if and how they are covered by Business Disruption Insurance
27 – Additional Resources & Guides
Government Of Canada, Resources for Canadian Businesses: https://www.canada.ca/en/services/business/maintaingrowimprovebusiness/resources-for-canadian-businesses.html
NEW! Province of Ontario Business Information Phone Line: 1-888-444-3659 https://news.ontario.ca/opo/en/2020/03/stop-the-spread-business-information-line-now-open-at-1-888-444-3659.html
NEW! COVID-19 and Commercial Leases: crowdsourced advice for small businesses and landlords – Councillor Brad Bradford. http://www.waterfrontbia.com/wp-content/uploads/2020/03/COVID_Commercial_Lease_Guide_PUBLIC.pdf
City of Toronto, COVID-19: Economic Support & Recovery: https://www.toronto.ca/home/covid-19/economic-support-recovery/
Guidance from the Toronto Police Service on securing your business during temporary closures (infographic): https://pbs.twimg.com/media/ETfarkZWoAIC20t?format=jpg&name=900×900
Canadian Chamber of Commerce Pandemic Preparedness Guide: http://www.chamber.ca/resources/pandemic-preparedness/BusinessPrepGuidePanPrep2020
Institute for Catastrophic loss Reduction Small Business Guides: https://www.iclr.org/small-business/
Business Development Bank of Canada: Business continuity plan and templates for entrepreneurs: https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/pages/business-continuity-guide-templates-entrepreneurs.aspx
Business Development Bank of Canada Pre-Recorded Webinar: “How to cope with the impacts of COVID-19 on your business” March 24, 2020: https://youtu.be/ZWtYS2XwovM
April 02, 2020 – Digital Main Street Webinar: eCommerce 101: What, why, and how. https://www.eventbrite.com/e/ecommerce-101-what-why-and-how-tickets-101248663478?fbclid=IwAR369Lg2Oo6ob6WWLCk3MKPidFQa7piP9J3y63Nsw0bWTzOngfJnqQi-2lQ
28 – Business Surveys and Advocacy Efforts.
NEW! 27/03/2020 City of Toronto COVID-19 Business Survey
In recognition that the time between when revenue is earned and when it is paid could be highly variable in certain sectors of the economy, it is proposed that employers be allowed to measure revenues either on the basis of accrual accounting (as they are earned) or cash accounting (as they are received). Special rules would also be provided to address issues for corporate groups, non-arm’s length entities and joint ventures.