Federal Government Announces the Extension of two Pandemic Support Programs
It cannot be denied; Canadian companies are facing critical challenges. These challenges have not gone ignored. At the beginning of September, the Federal government announced the extension of two pandemic support programs for businesses. The programs have been set up to help business owners develop their resilience and find new opportunities utilizing: expert advice, insurance and simple access to cash flow.
Canadian Emergency Business Account
Originally launched on April 9, 2020, the Canadian Emergency Business Account was created to support businesses by providing financing for their expenses, as they took steps to safely navigate a period of shutdown. The goal was to help position businesses for successful re-launches when the economy re-opened.
This $55 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits.
As of June 26, 2020, businesses eligibility for CEBA changed. It now includes: owner-operated small businesses that do not have a payroll, sole proprietors receiving business income directly, as well as family-owned corporations. CEBA is not intended to provide income support, or support for variable operating expenses to businesses.
The good news! CEBA has been extended to October 31, 2020, making the program accessible longer to Canadians. If you have already applied for CEBA and have questions, please contact the new CEBA Call Centre at 1-888-324-4201 to receive a status update on your CEBA application. You can also visit them at (https://ceba-cuec.ca/).
The CEBA call centre is open Monday to Friday from 8:00 am to 9:00 pm EST and can address the following types of questions:
- What is the status of my application?
- Why was my application declined?
- Why was my submitted document rejected?
Business Credit Accessibility Program
There is more good news. Export Development Canada and the Business Development Bank are working with financial lenders to support access to capital for Canadian businesses of all sizes in all sectors.
Export Development Canada (EDC) understands that these are challenging times for Canadian companies, both internationally, and within Canada. They have partnered with financial institutions to help businesses improve their cash flow through their bank or credit union to cover: rent, payroll and other business operating costs.
EDC’s solutions have been adjusted to meet today’s needs including: deferred fees, increased risk tolerance and faster approvals. EDC’s financial solutions are now available to all qualified Canadian business owners and exporters until the end of 2021.If your business is like many others during this time, and needs access to working capital to cover operational costs as a result of the pandemic, you may be eligible for the EDC BCAP Guarantee.
We understand; talking to a financial institution about your eligibility for a lending program can be daunting. You can download this one-page BCAP Guarantee reference sheet (https://www.edc.ca/en/solutions/working-capital/bcap-guarantee.html)
and have it on-hand to help guide your conversation. It will help you explore ways that the BCAP Guarantee can help your financial institution agree to your loan request.