COVID-19 75% Employer Wage Summary

And Update on Other Business Programs

The federal government released more details on the 75% Wage Subsidy program this morning, as well as the application dates.  There are still more specifics that will come available when the online application process begins in about three weeks.  
 
Canada Emergency Wage Subsidy
Eligible Employers:

  • Proprietorships
  • Partnerships
  • Not for Profit Organizations
  • Registered Charities
  • Canadian controlled private corporations

Qualifications:

  • Loss of revenues of at least 30%
    • Measured on a monthly basis comparing the same month in 2019 to the current month
    • Available for the three months of March, April and May
    • Must re-apply for each month individually
    • Qualifications for new start-up businesses are yet to be determined.
  • Organizations that do not qualify for the Canada Wage Subsidy may qualify for the previously announced wage subsidy of 10% of remuneration paid from March 18 – June 20, 2020.

Amount of Benefit

  • Applicable to the first $58,700 of salary
  • Provides subsidy of up to $847 per week per employee
  • Employers are expected to supplement employees for the additional 25% of their salary as they are able
  • Benefits are retroactive to March 15, 2020

Registrations and Availability of Funds

  • Applications through the CRA MyAccount web portal in about three weeks
    • Businesses without MyAccount should register as soon as possible
  • Payment of qualifying funds in about six weeks
    • Business should also register for direct deposit once their MyAccount is established., to expedite payments
  • Requires monthly re-application

Other

  • Applicants are put on notice that anyone trying to use this subsidy for fraudulent purposes or those whose applications have been falsified to qualify, will be subject to severe penalties
  • Applications are made on the honor system.

Summary of Other Business Programs

Access to Credit

  • Programs will start to become available in about the third week of April
  • Businesses and Not-For Profits should work with their current financial institutions for applications

Canada Emergency Business Account

  • Loan financing administered through the Business Development Bank
  • Available through major financial institutions
  • For Businesses and Not for Profit Organizations
  • Up to $40,000 per entity
  • Interest free for first year
  • Up to $10,000 forgivable if repaid before December 31, 2022. 
    • Other criteria yet to be announced
  • Qualifying businesses must have total payroll of between $50,000 to $1 Million in 2019
  • Additional funding for import/export to be available through Export Development Canada

Loan Guarantee for Small and Medium-sized Enterprises

  • Administered by EDC through financial institutions to issue new operating credit and cash flow term loans of up to $6.25 Million

Agriculture Credit

  • $5 Billion in additional lending capacity available through Farm Credit Canada
  • For producers, agribusinesses and food processors

Deferral of GST and Customs Duty Remittances

  • All remittances whether for monthly, quarterly or annual filers, that would be due at the end of March, April or May
  • Payment that would be due for any of these periods are not due until June 30, 2020
  • Similar deferral of Customs duties until June 30, 2020

Links for more information: