Canada has a host of resources to help small businesses and individuals deal with the impact of the Coronavirus. Below is a summary of the Economic Response Plan as well as some useful links. Given the fluid nature of the evolving crisis, we will continue to update this page as information becomes available or there are are changes to note.
Economic Response Plan
In response to the economic impact of the Coronavirus pandemic on the citizens and economy of Canada, the government has taken these steps to help through the crisis.
- Extending the duration of Work-Sharing program from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.
- Providing small businesses with wage subsides of 75% of the wages up to $847 per worker per week for up up to 3 months, retroactive to March 15, 2020. An employer tops up any salary exceeding $58,700 from the business’s own funds.To be eligible a business must suffered at least a 30% decline in revenue because of the coronavirus pandemic for wages up to 58,700, for up to 3 months, retroactive to March 15, 2020.
- Establishing a Business Credit Availability Program that includes a government co-lending program with private sector financial institutions to provide small and medium-sized businesses with loans and other forms of credit amounts of up to $6.25 million, with no interest for a year, with $10,000 possible forgivable.
- Allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020
- Deferring Sales Tax Remittance and Customs Duty Payments until June 30, 2020
On March 13, 2020, the Government announced the establishment of a Business Credit Availability Program (BCAP) to help Canadian businesses obtain financing during the current period of significant uncertainty. The BCAP will support access to financing for Canadian businesses in all sectors and regions.
To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada is announcing the launch of the new Canada Emergency Business Account, which will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).
This program allows EDC to offer Canadian businesses of all sizes the credit they need during the COVID-19 pandemic. We are working in concert with the Business Development Bank of Canada (BDC) and private sector lenders to ensure Canadian companies get support during these uncertain times.
Small and medium-sized businesses are the backbone of the Canadian economy. During this extraordinary time, the Government of Canada is taking strong action to help Canadian businesses as COVID-19 is affecting them, their employees and their families. Learn more about the many resources available for Canadian businesses.