Information About Canadian Government COVID-19 Business Relief
The article contains essential information about COVID-19 business relief to help Canadian businesses survive the current coronavirus-caused global epidemic.
No human is an island, and we all need to cooperate to survive. There is hope, and Canadians are committed to finding a way through the pandemic together. Fortunately, the Canadian government also believes it necessary to invest in our businesses as well. Companies drive the economy, and many will not survive without some kind of support.
Here are the basics of what you need to know about Canadian Government support for businesses during the COVID-19 pandemic.
Five Things To Understand About COVID-19 Business Relief In Canada
Information You Can Trust
Most people looking for business support are probably thinking about financial assistance. However, when people can potentially die from misinformation, there is value to information support. While sources like the World Health Organization provide excellent myth-busting guides for individuals, the Canadian government can be an excellent place for information relevant to businesses. For example, the risk assessment tool can provide a comprehensive source of factors for companies to consider before deciding when to close. The page also includes mitigation mechanisms for when owners choose to stay open.
Programs To Support Your Employees
As many business owners already know, healthy employees are necessary for a successful operation. Accordingly, business owners should be very familiar with the resources available for Canadian workers coping with COVID-19. The Canada Emergency Response Benefit supports workers who lost income by providing up to $500 a week for 16 weeks. Applications will be available beginning April 6th. Also, the Canada Child Benefit is increasing by $300.
Helping your valued employees to draw income during nonworking periods can help you to retain the experienced staff you will need to continue operations once the isolation ends.
Business Loans That Must Be Repaid
If you are new to business ownership, or still attempting to build your company, you may not personally have the savings to withstand the current period. For many in this situation, your business can rapidly become a drain on the financial resources you must use to support yourself and your family. At the same time, if Canada is to restore economic health eventually, small business owners must reopen at some point. This dangerous dichotomy is why the Canadian government extends personal benefits to the entrepreneurs as well as workers.
The Canada Emergency Business Account provides loans of up to $40,000 for small businesses and nonprofit organizations. If the loans are repaid by December 31, 2022, 25% of the loan will be forgiven. The Business Credit Availability Program will render another 65 billion dollars in assistance to Canadian businesses through the Business Development Bank of Canada and Export Development Canada.
Direct Cash Assistance
For businesses receiving at least a 30% drop in revenue due to COVID-19, they can receive assistance from the Canada Emergency Wage Subsidy. The subsidy can provide up to $847 per week on the first $58,700 earned by employees. Through this assistance, the government hopes businesses can keep paying employees through the drop in cash flow.
The above mentioned Canada Emergency Response Benefit of $2000 a month is also available to entrepreneurs.
Other Administrative Changes To Understand
To reduce administrative costs and pressures on Canadian businesses, specific changes to government processes were also announced. The Canada Revenue Agency has deferred tax payments until August 31, 2020. Several other filing deadlines were also extended significantly. Visit the revenue agency for more information.
Student loan repayments for both Canada Student Loans and Canada Apprentice Loans are suspended until September 30, 2020.
Your Guide Through Troubled Waters
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