COVID-19 Government Programs and Assistance

Canada Emergency Business Account Program: (CEBA)

  • $40,000 loan available to small businesses and not-for-profits
  • Interest free to December 31, 2022
  • If paid off by December 31, 2022, 25% of the loan will be forgiven
  • If not paid off by December 31, 2022 the remaining balance is converted to a 3 year term loan at 5% interest
  • The funds from this loan are only be used by the borrower to pay non-deferrable operating expenses of the borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
  • To qualify for the loan you must have
  • An operating company registered in Canada on March 1, 2020
  • Have an active business operating account with a financial institution
  • 2019 gross annual payroll of $20,000 (You will need your T4 Summary of Remuneration Paid as proof)
  • If your 2019 payroll is less than $20,000 the government expanded the eligibility requirements May 19, 2020 so that you could still qualify if the following conditions apply:
  • You have a business operating account at a participating financial institution
  • You have a Canada Revenue Agency business number, and have filed a 2018 and 2019 tax return
  • You have eligible non-deferrable expenses between $40,000 and $1.5 million.  Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities and insurance.
  • Apply at the financial institution that is the primary bank for your business.

Temporary Wage Subsidy for Employers:

  • Eligible employers include individuals, partnerships and Canadian Controlled Private Corporations
  • Employers must have an existing business number and payroll account with CRA on March 18, 2020
  • Canadian Controlled Private Corporations must have a Small Business Deduction Limit greater than nil
  • Subsidy equals 10% of the gross wages paid between March 18, 2020 and June 20, 2020
  • Per employee cap of $1,375
  • Employer cap of $25,000
  • Employer calculates their eligibility and reduces their CRA payroll remittances by amount of the subsidy
  • Can only reduce federal and provincial tax deductions, not CPP and EI deductions

  • Canadian Emergency Wage Subsidy: (CEWS)

    As a Canadian employer who has seen a drop in revenue due to COVID-19, you may be eligible for a subsidy to cover part of your employee wages, retroactive to September 30. This subsidy will enable you to re-hire workers, help prevent further job losses, and ease you back into normal operations. Changes to CEWS were announced on July 17th. Find out what the changes are.

    • Subsidy equals 75% of wage paid to employees
    • Subsidy capped at $847 per week per employee
    • To qualify a business must have a payroll account with Canada Revenue on March 15, 2020
    • To qualify a business must have had decline in gross revenue, payment is based on 3 periods
    • Period 1 - 15% decline for March 2020 compared to March 2019 or 15% decline in revenue in March 2020 compared to the average gross revenue of January and February 2020
    • Period 2 - 30% decline for April 2020 compared to April 2019, or 30% decline for April 2020 compared to the average gross revenue of January and February 2020
    • Period 3 - 30% decline for May 2020 compared to May 2019, or 30% decline for April 2020 compared to the average gross revenue of January and February 2020
    • Farmers can qualify for this subsidy if the business meets the requirements of the program including income decline. We have been advised that a farm business can use their actual cash sales for the periods mentioned above to determine eligibility
    • Special rules apply to employees who do not deal at arms-length with their employer
    • Businesses that also qualify for the Temporary Wage Subsidy will have the amount received under the Temporary Wage Subsidy deducted from this program
    • Application is made through Canada Revenue Agency's My Business Account
    • Canada Revenue has not yet released details of the application process
    • Businesses may be required to repay amounts received under this program if they do not meet eligibility requirements. Penalties, fines or even imprisonment may apply in cases of fraudulent claims
    • As there are a lot of complexities to this program we suggest you contact us for assistance if you think you qualify.

    Canadian Emergency Response Benefit (CERB)

    • Benefit available from March 15, 2020 to October 3, 2020
    • For individuals whether employed, self-employed or contract workers who:
    • During the first 4 week application period have stopped working due to COVID-19 for at least 14 consecutive days and during those days have earned less than $1,000 from employment, self-employment, certain EI benefits, royalties and non-eligible dividends
    • If situation continues you can reapply for multiple 4 week periods in the program date range
      • To qualify you cannot have earned more than $1,000 in total income for the entire 4 week period
      • Benefit is $2,000 for each 4 week period March 15 - October 3, 2020
      • Apply through My Account with Canada Revenue Agency, or over the phone with Service Canada's automated phone service numbers 1 800 959-2019 or 1 800 959-2041

      Youth Employment and Skills Program

      • A wage subsidy for employers who hire youth for agricultural jobs
      • The program offers support for 50% of wages to a maximum of $14,000
      • Will cover 100% of the costs for relocation to a maximum of $5,000 if an employee must relocate
      • Eligible employers include farmers, food processors and agribusiness
      • Eligible employees include unemployed or underemployed or students 30 years or younger who are Canadian citizens or permanent residents
      • Application forms available on Agriculture and Agri-Food Canada web site under Agricultural programs and services, Youth Employment and Skills Program (see applicant guide at this site for details)

      Canada Emergency Student Benefit (CESB)

      • Emergency financial assistance to post-secondary students who are unable to find employment or self- employment due to COVID-19 during any 4 week period between May 1 - August 31, 2020 (it is also available to those who are working but not making more than $1000 over the four-week period for which they are applying)
      • Post-secondary students must be enrolled in a program leading to a degree, diploma or certificate as well as students who graduated no earlier than December 2019.
      • Post-secondary students are eligible to receive $1,250 each month that they qualify from May to August
      • Post-secondary students with dependents or disabilities can receive up to $2,000 each month from May to August 2020
      • Students must be actively seeking for work
      • Application can be made through the Canada Revenue Agency website starting in May

      Canada Student Service Grant

      • Students who chose to volunteer their time in national and community service during the COVID-19 pandemic this summer will be eligible for $1,000 - $5,000 depending on hours spent in service

      Other Proposed Student Benefits

      • Double the Canada Student Grants for eligible full-time students up to $6,000, and for part-time students up to $3,600 in 2020-21
      • Broadened eligibility for student financial assistance by removing the expected student's and spouse's contributions in 2020-21
      • Canada Student Loans Program enhanced by raising the maximum weekly amount that can be provided to a student in 2020-21 from $210 to $350

      Saskatchewan Small Business Emergency Payment Program

      • Emergency financial assistance to small businesses in Saskatchewan that have been ordered to temporarily close or significantly curtail operations during the public emergency period due to a public health order to help control transmission of COVID-19
      • Benefit based on 15% of a business's monthly sales revenue in either April 2019 or February 2020 - to a maximum of $5,000 per business
      • Funds can be used for any purpose, including paying fixed costs or expenditures related to reopening the business following the pandemic.
      • To be eligible a business must:
      • Have been carrying on a business in Saskatchewan on February 29, 2020
      • Experienced loss of revenue due to a COVID-19 public health order
      • Plan to reopen operations following to the cancelation of the public health order
      • Have not received payments from any other sources, including insurance to replace or compensate for the loss of sales revenue other than amounts from other government assistance programs
      • Apply on or before July 31, 2020

      Canada Revenue Agency Due Date Extensions

      • 2019 Individual tax return filing date - June 1, 2020
      • Payment date for 2019 tax owing - September 1, 2020
      • June 15 installment payments for individuals who pay by installments due by - September 1, 2020
      • Corporations with filing dates after March 18 and before June 1, 2020 have had their filing date extended to June 1, 2020
      • Corporations payment due date for amounts due on or after March 18 and before September 1, 2020 is extended to September 1, 2020
      • Payroll Remittance due dates remain as normal and have not been changed
      • GST filing due dates have not changed, however CRA will allow businesses to defer, until June 30, 2020 any GST payments or remittances that become owing on or after March 27, 2020 and before June 30, 2020