NTI: Government of Canada’s COVID-19 Economic Response for Businesses, Non-Profit Organizations and Employees

In response to the COVID-19 outbreak, the Government of Canada has introduced measures to help businesses, employees, non-profit organizations, individuals and communities.

The Canadian Northern Economic Development Agency (CanNor) has prepared this information sheet to summarize available resources from the Government of Canada. For additional information, please visit the official Government of Canada website, www.canada.ca.

1. Support For Businesses:
2. A) Canada Emergency Wage Subsidy

What is it?

• A temporary wage subsidy for businesses available in the next 6 weeks. It covers up to 75 per cent of the first $58,700 of an employee’s salary up to a maximum of $847 per week.
• Available for 90 days, backdated to March 15, 2020 up until June 6, 2020.
• Eligible remuneration includes salaries, wages, bonuses, or other remuneration to any number of employees. Employers will need to attest they are doing everything they can to pay the remaining 25% salary.

Who can apply?

• Open to any business that has suffered a 30-per-cent drop in gross revenues since this time last year due to the COVID-19 outbreak. Employers will have to demonstrate this drop by comparing revenues for March, April and May of last year and will need to reapply each month. (Guidance on the definition of “revenue” for non-profits and charities is still being reviewed).
• Businesses include non-publicly funded companies, individuals, charities, non-profit organizations, and partnerships.
• Have an existing business number and payroll program account with the Canada Revenue Agency (CRA) on March 18, 2020.
• Note that organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, 2020.

How to apply?

• Employers do not need to apply for the subsidy. Employers will continue to deduct income tax, CPP contributions and EI premium from salary, wages, bonuses and other remuneration paid to employees.
• The subsidy will be calculated when these amounts are remitted to the CRA.
• Once the subsidy is calculated, employers can reduce their current payroll remittance of federal, provincial, or territorial income tax that they send to the CRA by the amount of the subsidy.

Information up to date as of April 7, 2020

• Employers will be able to access more information on the Canada Emergency Wage Subsidy through a Canada Revenue Agency online portal. More details will follow shortly.

1. EI Work-Sharing program

What is it?

• Support to businesses experiencing a business downturn.
• Extends the duration of Work-Sharing agreements by 38 weeks for a total of 76 weeks.

Who can apply?

• Businesses must be year-round enterprises operational in Canada for at least one year; a private business, publicly held company or a not-for-profit organization; and have at least two employees in the Work-Sharing Unit.
• Businesses should consult the Work-Sharing Applicant Guide and provide employees with a copy of the Employee Annex before submitting an application.

How to apply?

• Employers will submit the Application for a Work-Sharing Agreement form (EMP5100) and the Work-Sharing Unit form (EMP5101).
• Employers in the territories will email their application to: WT.WS-TP.ESDC@servicecanada.gc.ca.
• For more information, call 1-800-367-5693.

1. C) Business Credit Availability Program (BCAP)

What is it?

• The BCAP established $65 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
• Provides credit solutions for individual businesses, including sectors such as oil and gas, air transportation, agri-food and tourism.
• Additional details are expected to be available by April 17, 2020, when the program is officially rolled out.

Who can apply?

• Creditworthy Canadian businesses needing financing to support operations and avoid layoffs.

How to apply?

• Businesses can apply through their primary financial institution, which will assess their client’s request for the program.

BCAP includes the following:

Canada Emergency Business Account

What is it?

•    Loans for eligible small businesses.

•    Banks will offer business loans of up to $40,000 guaranteed by the Government of Canada and interest free to qualifying businesses.

Information up to date as of April 7, 2020

• Up to $10,000 will be eligible for forgiveness if $30,000 is fully repaid on or before December 31, 2022.

Who can apply?

• To qualify, businesses will need to show that they paid between $50,000 to $1 million in total payroll in 2019.
• This program will roll out in mid-April, and interested businesses should work with their current financial institutions to apply.

Loan Guarantees for Small and Medium Enterprises

What is it?

• Support for small and medium-sized enterprises (SMEs).
• Export Development Canada (EDC) will fund financial institutions so that they can issue new operating credit and cash flow term loans to SMEs for up to $6.25 million.

Who can apply?

• Businesses directly or indirectly impacted by the pandemic and which were financially viable prior to the COVID-19 outbreak.

How to apply?

• Businesses can apply through their primary financial institution.

Co-lending program for Small and Medium Enterprises

What is it?

• Business Development Bank of Canada (BDC) and financial institutions will co-lend term loans to businesses for their operational cash flow requirements.
• Eligible businesses can obtain incremental credit amounts up to $6.25 million.

Who can apply?

• Businesses directly or indirectly impacted by the pandemic and which were financially viable prior to COVID-19 outbreak.

How to apply?

• Businesses will apply through their primary financial institution.

Support for Farmers

What is it?

• Farm Credit Canada (FCC) will provide an additional $5 billion in lending capacity to producers, agribusinesses and food processors.
• Initial focus is on addressing cash flow challenges.

Who can apply?

• Producers, agribusinesses and food producers.

How to apply?

• Businesses can contact the FCC customer service centre at 1-888-332-3301.

Information up to date as of April 7, 2020

1. D) Extended period to pay income and sales taxes

What is it?

• Ability to file and pay taxes later than the normal dates with no interest or penalties incurred until September 1, 2020.

How does it work?

• All self-employed and spouses will have until June 1, 2020, to file their taxes.
• All businesses to defer, until September 1, 2020, the payment of tax balances, including installments.
• Deferral of Sales Tax Remittance and Customs Duty Payments by businesses, including self-employed individuals, to June 30, 2020. Applies to remittances for February, March and April 2020.

2. Support for Non-Profit Organizations:

The Canada Emergency Wage Subsidy and the Canada Emergency Business Account are available to not-for-profit organizations. See above.

3. Support for Employees:
4. Employment Insurance

What is it?

• The one-week waiting period and requirement for a medical certificate for employment insurance (EI) sickness benefits will be waived for claimants in

How to apply?

• Apply online through Employment and Social Development Canada’s website.
• For individuals who have already applied for EI sickness benefits, to request to have the one-week waiting period waived, call 1-833-381-2725.

1. Canada Emergency Response Benefit (CERB)

What is it?

• A taxable benefit of $500 per week for up to 12 weeks for workers who lost their income due to the COVID-19 outbreak.

Who can apply?

• Canadian residents who are at least 15 years old and who have stopped working because of COVID-19 or are ineligible for Employment Insurance;
• Had an income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and
• Who expect to be without income for at least 14 consecutive days in the initial four week period.
• Individuals who have applied for Employment Insurance (EI) will automatically be processed through the CERB if they are eligible.

Information up to date as of April 7, 2020

How to apply?

• Applications will be accepted starting on April 6, 2020.
• There are two ways to apply: online through Canada Revenue Agency My Account or by telephone at 1-800-959-2019 or 1-800-959-2041.
• You will need to apply and confirm your eligibility for the Canada Emergency Response Benefit every 4 weeks.

1. Extended period to pay income and sales taxes

What is it?

• Ability to file and pay taxes later than the normal dates with no interest or penalties incurred until September 1, 2020.

How does it work?

• All taxpayers will have until June 1, 2020, to file their taxes.
• All taxpayers may defer, until September 1, 2020, the payment of tax balances with no interest or penalties incurred.

1. Canada Child Benefit

What is it?

• Canada Child Benefit (CCB) payments are increased to ensure working families have enough money to support their children.
• Increases the maximum annual CCB payment amounts for the 2019-2020 benefit year by $300 per child.

Who can apply?

• To be eligible, individuals must meet all of the following conditions: o Must live with a child who is under 18 years of age

o You are primarily responsible for the care and upbringing of the child o You are a resident of Canada for tax purposes

o You or your spouse or common-law partner must be either: a Canadian citizen, permanent resident, a protected person, a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19^th month; or an Indigenous person who meets the definition of “Indian” under the Indian Act.

• Existing recipients of the CCB will receive the credit automatically.
• If individuals do not already receive the CCB, they can apply by registering the birth of their newborn by mail or online.

o  The eligibility requirements for the CCB have not changed.

How to apply?

• Existing recipients of the CCB will receive the credit automatically.
• There are several ways to apply:
• when you register the birth of your newborn;
• online through your Canada Revenue Agency My Account; o by mailing completed forms to your local tax centre;
•  by calling 1-800-387-1193; or for Yukon, Northwest Territories or Nunavut: 1-866-426-1527.

Information up to date as of April 7, 2020

1. Goods and Services Tax credit

What is it?

• A one-time special payment available by early May for low and modest-income working families.
• The average benefit will be close to $400 for single individuals and close to $600 for couples.

How to apply?

• There is no need to apply for this payment. If you are eligible, you are enrolled automatically if you have filed your taxes for 2018.
• You don’t have to file your 2019 taxes to receive the Goods and Services Tax credit amount, as the payment will be based on your 2018 taxes. Individuals who have filed their taxes for 2018 will receive payment by direct deposit or a cheque in the mail.
• Taxes for 2019 must be filed to continue benefits and credits for the July 2020 to June 2021 benefit year.

Please consult the COVID-19 pages on the Canada.ca website for the latest information on the measures outlined above.

The Canadian Northern Economic Development Agency (CanNor) can be reached:

By email: cannor.operations.cannor@canada.ca

By telephone:

Nunavut: (867) 975-3725

Northwest Territories: (867) 669-2591

Yukon (867) 667-3238

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