6 On-going Supports to bolster Covid-19 Recovery Efforts
Small (new) to medium businesses in Canada are significant contributors to the economy of the country. Covid-19 has made it difficult for small to medium businesses to thrive the way they would if the economy was stronger, so the federal government has brought in various programs to nurture the growth of these businesses.
The team at Matrix Mortgage Global are well aware of the challenges that entrepreneurs are facing to keep their business afloat, so in this article we are going to provide you with six programs that could help you during this difficult time. In confronting severe economic hardship across Canada, the government has made these improvements to serve as a social safety net. If you have any questions, discover how we can help by visiting us at https://www.matrixmortgageglobal.ca/, or giving us a call at 1-855-553-8637 on our 24/7 Live Support Line.
Commercial rent assistance for small businesses
Ontario has partnered with the Government of Canada to deliver the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses and commercial landlords experiencing financial difficulties during the coronavirus (COVID-19) pandemic.
This forgivable loan allows landlords to reduce rent for their impacted small business tenants by at least 75% for the agreed upon period, so they can stay in business
On September 8, 2020, the CECRA for small businesses was extended by one month to cover September 2020 rent. Participation in the one-month extension is voluntary. Both existing and new applicants can apply for the September rent reduction.
Canada 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 March 15. This subsidy will enable you to re-hire workers, help prevent further job losses, and ease you back into normal operations.
The subsidy rate varies, depending on how much your revenue dropped, andemployers who were hardest hit over a period of three months get a higher amount.
Canadian Emergency Business Account
Originally launched on April 9, 2020, CEBA is intended to support businesses by providing financing for their expenses that cannot be avoided or deferred, helping to position businesses for success. This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profit companies. If you are able to repay the balance of the loan on or before December 31, 2022, it will result in loan forgiveness of 25 per cent (up to $10,000).
As of June 26, 2020, businesses eligible for CEBA now include: owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll. CEBA is not intended to provide income support, or support for variable operating expenses to businesses.
Relief measures for Indigenous businesses
The Government of Canada will provide up to $306.8 million in short-term, interest-free loans and non-repayable contributions for First Nations, Inuit, and Métis businesses.
This relief measure was created to support small and medium-sized Indigenous businesses that are current or former clients of an Aboriginal Financial Institution. There is now up to $40,000 available to small and medium-sized Indigenous businesses with an interest-free loan up to $30,000, and a non-repayable contribution up to $10,000.
Business Credit Availability Program
Get the cash flow you need during the COVID-19 pandemic by working with your financial institution and EDC.
Export Development Canada (EDC) has partnered with financial institutions to help businesses of all sizes, sectors and regions address the financial impacts of COVID-19. Qualified applicants can quickly improve their cash flow through their bank or credit union to cover rent, payroll and other business operating costs. Your business does not need to have export sales to qualify for this program.
Regional Relief and Recovery Fund
The Regional Relief and Recovery Fund (RRRF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic, and have been unable to access other Government of Canada measures.
The RRRF is valued at more than $962 million nationally, and is delivered by Canada’s six regional development agencies. In southern Ontario, $252.4 million is available through FedDev Ontario.
To overcome our current obstacles, it is important to stay calm, have strong determination, and work as hard and smart as possible.