SUPPORTS FOR SMALL BUSINESSES
New programs and measures were announced by the government on March 18.
We will update this page with links once the details become available.
I HAVE A SMALL BUSINESS SO HOW ARE THESE ANNOUNCED SUBSIDIES GOING TO HELP ME?
Photo by Tim Mossholder on Unsplash
On March 13, 2020 the federal government announced that the government is establishing a Business Credit Availability Program (BCAP) to support financing in the private sector through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
- Here are the current options available:
- Small Business Loan: Up to $100,000 can be obtained online.
- Working capital loan: For loans over $100,000 and can support everyday operations.
- Purchase Order Financing: Loans to fulfill domestic or international orders.
If you have specific questions about applying for funding, BDC can be reached at the toll-free number: 1-877-232-2269 Monday to Friday, from 7:30 a.m. to 8:00 p.m. (Eastern Time) and Saturday and Sunday from 9:00 a.m. to 5:00 p.m. (Eastern Time). They also have an online assessment tool.
MORE INFORMATION:
SMALL BUSINESS WAGE SUBSIDY
The government will provide a 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll. All businesses seeing 30% drop in revenue due to pandemic will be eligible for 75% wage subsidies.
For those companies experiencing a decrease in revenues of at least 30 per cent, the government will cover up to 75 per cent of a salary on the first $58,700, which could mean payments of up to $847 a week.
More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month (March 2020).
Businesses must show 30 per cent decline in revenue. The revenue decline is measured against the same month last year.
The benefit offers a maximum of $847 per week per employee.
More information: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html
https://www.canada.ca/en/department-finance/news/2020/04/government-announces-details-of-the-canada-emergency-wage-subsidy-to-help-businesses-keep-canadians-in-their-jobs.html
ACCESS TO BUSINESS CREDIT
The government has established a Business Credit Availability Program (BCAP) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism.
As a first step, businesses in need of credit support should contact their financial institution.
More info here: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html