COVID-19 Government Financial Support Programs
Monday March 29, 2020
On Friday, March 27, 2020, the government announced additional financial measures to assist small and medium-sized businesses:
Deferral of GST/HST remittances to June 30, 2020
- for monthly filers; GST/HST collected in February, March and April 2020
- for quarterly filers: GST/HST collected January 1st to March 31, 2020
- for annual filers: for whom their annual return is due in March, April or May 2020
These deferrals will be available via your CRA remittance/return.
Canada Emergency Business Account
- Interest-free loans available for up to $40,000 for small business and not-for-profits to help cover operating costs during the period where revenues are markedly reduced due to COVID-19
- Eligible organizations will have had a payroll of between $50,000 and $1,000,000 in 2019.
- Repaying balance of a loan before December 31, 2022, will provide loan forgiveness of 25%, up to $10,000.
- Accessible through existing financial institution
In addition to this facility, a program of loan guarantees and a co-lending program will be made available to small and medium-sized businesses that are particularly vulnerable to the negative consequences of COVID-19, backed by EDC and BDC, and available through an existing financial institution. See further details Here.
Wage subsidy increased from 10% to 75%
All businesses, regardless of the number of employees they have, whose revenue has decreased by 30 percent or more due to COVID-19 will be eligible for an up to 75 percent wage subsidy. The subsidy will cover up to 75% of an employee’s first $58,700 in annual earnings which could mean payments of up to $847 a week retroactive to March 15, 2020. Charities and not-for-profit organizations will also be eligible to apply. Businesses are also encouraged to top up their employees’ wages with the remaining 25 percent of their salaries if they are able to do so. More details of the program will be unveiled shortly by Finance Minister Morneau.
Other measures were announced by CRA on March 27, 2020, applying to a deferral of customs duties and sales tax for importers to June 30th, and numerous administrative actions are also deferred to June 2020. For a complete list of these measures, you will find more at
– I will update you as further information is available. – Bruce