FEDERAL BENEFITS:
Canada Emergency Response Benefit (CERB)
The CERB supports Canadians by providing financial support to employed and self-employed Canadians who are directly affected by COVID-19.
It provides a payment of $2,000 for a 4-week period (the same as $500 a week) for up to 16 weeks.
After you apply, you should get your payment in 3 business days if you signed up for direct deposit. If you haven’t, you should get it in about 10 business days.
further details on how to apply and eligibility are on the link below.
canada.ca/…nefits/apply-for-cerb-with-cra
https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html
Wage Subsidies for Small Businesses
To support businesses that are facing revenue losses and to help prevent lay-offs, the Federal Government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 75% of remuneration paid during that period, Businesses will benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. We are still waiting for more details on this benefit and will update this information as it arrives.
Interest Free Loan
The federal government is launching a special emergency business account for small businesses that will see banks offer $40,000 government-guaranteed loans interest-free for the first year. If certain conditions are met, the first $10,000 will be forgiven.
It’s a $40,000 loan to help eligible businesses pay for operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity
Until December 31, 2020, the Canada Emergency Business Account will be funded as a revolving line of credit for $40,000.
No interest applies until January 1, 2023.
After December 31, 2020, any outstanding balance on the revolving $40,000 line of credit will be converted into a non‑revolving 5 year term loan maturing on December 31, 2025, at which time the balance must be paid in full.
Commencing on January 1, 2023, interest accrues on the balance of the term loan at the rate of 5% per annum, payable monthly on the last day of each month.
| If you pay 75% of the balance of the term loan (as at January 1, 2021), on or before December 31, 2022, the remaining balance of your term loan will be forgiven. For example, if your balance is $40,000 on January 1, 2021 and you repay $30,000 on or before December 31, 2022, the remaining $10,000 will be forgiven.
If you do not repay 75% of the balance of the term loan (as at January 1, 2021) on or before December 31, 2022, the full loan balance and all accrued and unpaid interest will be due and payable on December 31, 2025. |
GST:
As well, an additional $12.5 billion is being made available through federal programs, to help with “operational cash flow requirements,” and HST and GST payments are being deferred until June, giving businesses more time to make their payments.GST payments deferred until June
Deferral of Business Filing Taxes
The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as installment, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
Extended Work-Sharing Program
The work-sharing program is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for EI benefits who work a temporarily reduced work week while their employer recovers.
Business Credit Availability Program
On March 13, 2020, the Federal government established a Business Credit Availability Program (BCAP) to support financing in the private sector through Business Development Bank of Canada (BDC) and Export Development Canada (EDC). This will allow BDC and EDC to provide more than $10 billion of additional support to businesses through coordination of financing and credit insurance solutions for Canadian businesses. These include:
- Small business loans| BDC
- Working capital loans| BDC
- Purchase Order Financing| BDC
BRITISH COLUMBIA BENEFITS:
British Columbians affected by the COVID-19 pandemic will benefit
A new B.C. Emergency Benefit for Workers will provide a tax-free $1,000 payment to British Columbians whose ability to work has been affected by the outbreak. The benefit will be a one-time payment for British Columbians who receive federal Employment Insurance (EI), or the new federal Emergency Care Benefit or Emergency Support Benefit as a result of COVID-19 impacts. This includes workers who have been laid-off, who are sick or quarantined, parents with sick children, parents who stay at home from work while child care centres and schools are closed, and those caring for sick family members, such as an elderly parent. The workers can be EI-eligible and non-EI eligible, such as the self-employed. The benefit will be paid to B.C. residents, in addition to their federal income supports.
The COVID-19 Action Plan takes further steps to boost income supports by increasing and expanding the B.C. Climate Action Tax Credit in July 2020. As many as 86% of British Columbians will see some extra money from this enhancement. Eligible families of four will receive up to $564 and eligible individuals will receive up to $218 in an enhanced payment. This boosts the regular climate action tax credit payment of up to $112.50 per family of four and up to $43.50 per adult.
To support non-profits, service delivery agencies and child care providers, the Province will continue to provide funding even if these agencies are closed or their regular operations have been disrupted. Licensed child care providers staying open will receive enhanced funding to keep operations going. These centres are eligible to receive seven times their average monthly operating funding from government, which is expected to cover approximately 75% of a group facility’s average monthly operating expenses.
To help people with B.C. student loans, the Province is freezing B.C. student loan payments for six months, starting March 30, 2020. Federal student loan payments are being frozen as well.
British Columbians needing more time to pay their bills can also apply to existing payment deferral programs at ICBC and BC Hydro. ICBC is extending deferrals to up to 90 days. People dealing with job loss, illness or loss of wages due to COVID-19 may also qualify for BC Hydro’s Customer Crisis Fund grant program for up to $600.
Supporting businesses
British Columbia has a strong economic foundation, but COVID-19 is having impacts across the country and around the world. Every aspect of B.C.’s economy will be touched by this pandemic. The COVID-19 Action Plan will help businesses get through the immediate crisis and lay the groundwork needed to get businesses back on their feet once the crisis is over.
Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020. Businesses with a payroll under this threshold are already exempt from the tax.
In addition to the employer health tax, the Province is extending tax filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax on short-term accommodation, tobacco tax, motor fuel tax and carbon tax until Sept. 30, 2020. The scheduled April 1 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, will be delayed and their timing will be reviewed by Sept. 30, 2020.
Business and light- and major-industry property classes will see their school tax cut in half. This will provide $500 million in immediate relief for business that own their property and allow commercial landlords to immediately pass savings on to their tenants in triple-net.
