This year has been a difficult one for many businesses. The Federal and Provincial Governments have created a number of different programs to help businesses survive during COVID 19. Below is a very general overview of the programs available. If you have questions, please call me and we can work together to find out which one(s) you may qualify for.
Canadian Wage Subsidy (CEWS) (Open)
Extended to June 2021
Claim by January 31, 2021 or 180 days after qualifying 4-week period (whichever is later)
Must have wages to qualify for this support. Compares revenue to prior periods (there are several options) and if there is a decrease (Different rules throughout the period from March to December); a portion of the wages is provided as a subsidy cheque. The subsidy is taxable in the period that wages relate to. This subsidy interacts with CEBA, 10% wage subsidy and CERS. You must file for each four-week period that the company qualifies to claim. There are many special rules applicable to this program.
Wage Subsidy 10% (Open)
Eligible wages from March 18, 2020 to June 19, 2020
10% of wages paid from March 18th to June 19th, 2020 as a credit against source deduction or refund from payroll account in 2021. Several filings need to be done to report properly. Can result in PIER review (Payroll) if not filed properly.
Canadian Emergency Business Account (CEBA) (Open)
Repayment Date: December 31, 2022 for loan forgiveness up to $20,000 (depending on type of loan received)
On the surface appears to be a standard no-interest loan with a forgivable portion. The main issue with this program is the rules related to what the loan can be used for are very restrictive. If do not have commercial rent, arms-length employee wages, or regular loan payments (started before March) likely this account will have limited benefit. The first Loan was 40K with 25% forgivable, updated to 60K total with an additional 10K forgivable. The qualifying portion of the expenses loan can be used for is offset by other government subsidies. Significant limitations to what the loan can be used for.
Canada Emergency Rent Subsidy (CERS) (Open)
September 27, 2020 – June 2021
New rent subsidy that applies for the period from September 27, 2020, to June 2021. Direct payment to qualifying tenant. Tenant applies based on revenue decrease for prior periods similar to CEWS calculations.
Regional Relief and Recovery Fund (RRRF)
Loan for businesses that do not qualify under other federal programs or require additional funding. The majority of loans are up to 40K but there is an additional provision that can provide additional funding (up to 1,000,000). Loans are no interest but require full repayment (no forgivable portion). Repayment starts in January 2023. (3-year term)
Hiring Tax Incentive (BC) (Open)
For hiring new/additional employees between October 1st and December 31st, 2020
Tax credit at 15% of payroll increase compared to September 2020 quarter. Maximum weekly remuneration is $ 1,129.33 per employee.
PST rebate machines and equipment (BC)
For purchasing qualifying equipment.
September 17, 2020, to September 30, 2021 – Most equipment qualifies. The first application starts on April 1, 2021. Only applies to incorporated businesses.
Business Recovery Grant (BC)
Open to March 31, 2021 or until funds are fully allocated
$10,000 to $30,00 grants available to BC business with additional funds for eligible Tourism-related business. Grants must be used for specific qualifying expenses detailed in the program.
InBc (Financing) (Future)
BC small and medium businesses (Spring 2021) – 500K total to be invested in BC business.
BC Employer Training Grant (ETG)
Reimbursement of between 60-100% of training costs to a maximum of $300,000 per fiscal year (April 1st to March 31st) or a max of $10,000 per employee. There are 6 different training streams that businesses can apply under.
Canadian Emergency Rent Assistance (CECRA) (Closed)
First rent subsidy for business. Required landlord to apply structured in form of a fully refundable loan. The refundable portion of the loan taxable.
This program had significant effects on qualification under other programs.
PST deferral (Closed) – Ability to defer PST, EHT, Logging Tax to September 30, 2020.
WCB Deferral (Closed) – Deferral of payment for quarter 1 & 2 to October 20, 2020