Blueline Point as your payment processing advisor, would like to make sure you are taking advantage of available government programs to help your business financially during this time. We have prepared a brief recap of the 5 main Government Programs to assist your business during COVID-19.
(1) Canadian Emergency Business Relief
Apply before the deadline until March 31, 2021
- Interest free loan of up to $60,000 to fund operating costs during decreased revenue periods
- If the loan is repaid prior to the end of December 31st, 2022, 33% of the loan (up to $20,000) will be forgiven
- Requires 2019 payroll of between $20,000 and $1,500,000
- More details https://ceba-cuec.ca/
(2) Temporary 10% Wage Subsidy
- Three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA) (taxable benefit) up to a maximum of $9,625
- You can start reducing payroll remittances of federal, provincial, or territorial income tax in the first remittance period that includes remuneration paid from March 18, 2020 to June 19, 2020.
Eligibility:
- individual (excluding trusts),
- partnership,
- non-profit organization,
- registered charity, or
- Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;
- have an existing business number and payroll program account with the CRA on March 18, 2020; and
- pay salary, wages, bonuses, or other remuneration to an eligible employee.
(3) Canadian Emergency Wage Subsidy
- Covers 75% of an employees wages (capped at $847/week) for employers who have suffered a drop in gross revenues of at least 15% in March and 30% in April and May
- 12 week program (applies from March 15th, 2020 to June 6th, 2020 initially but now extended beyond June 6th 2020)
- The baseline is either the same months in 2019 or the average of January and February of 2020
- Employees are eligible if they are employed by eligible employers during the qualifying periods and did not miss a period of 14 consecutive days in the period
- Employees can be retroactively rehired, providing that eligible employers rehire and retroactively pay according to the claim
- More details https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
(4) Canadian Emergency Commercial Rent Assistance
- Qualifying commercial owners can apply for loans of 50% of the rent charged to eligible small businesses for April, May and June
- The loans will be forgiven if the owners agree to reduce rent by 75% for those periods and agree not to evict
- Small businesses would cover the remaining 25% for those months
- This may not apply to GHS or its landlords, but more details to come on this in the next few weeks
(5) Deferral of Income Taxes & GST
- Income Tax amounts owing between March 18th, 2020 and before September 2020 can be deferred interest free until after August 31st, 2020
- GST/HST amounts owing from March 27th, 2020 until the end of May 2020 can be deferred until the end of June
- All info can be found at https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses