* This article has been updated to include new changes as of May 25, 2020.
The COVID-19 pandemic is without doubt the biggest crisis in modern history since World War II. The lockdown and physical distancing measures it has forced into place have dealt a savage blow to the world economy.
To help out businesses, the Canadian government has introduced several economic programs since the crisis began early this year. This is a challenging and chaotic time, especially if you are a small business owner. It is important to know what relief measures can help you endure the current crisis and how and when to apply for them. Whether you are trying to maintain cash flow or need advice on updating your staff policies at this time, you can download our free resources for pandemic HR advice.
Here is a timeline of how the COVID-19 pandemic unfolded in Canada, and the financial relief measures the federal government has implemented in response.
January 25: Canada confirms its first case of COVID-19 related to travel in Wuhan, China.
March 9: Canada records its first COVID-19 death.
March 11: The World Health Organization declares the COVID-19 global outbreak to be a pandemic. The Canadian government introduces changes to the Work-Sharing program to support businesses. Under this scheme, employees continue to get income support while they work reduced hours. The special measures will stay in effect from March 15, 2020, to March 14, 2021 and include extending the duration of the work-sharing agreement from 38 weeks to 76 weeks.
March 13: The government announces a new Business Credit Availability Program. The initiative will provide more than $10 billion of additional support to businesses facing cash flow issues through the Business Development Bank of Canada and Export Development Canada.
March 18: The Canadian government rolls out the COVID-19 Economic Response Plan to support Canadians and businesses affected by the pandemic. It also permits businesses to defer, until after August 31, 2020, payment of income tax amounts owing on or after March 18, 2020, and before September 2020.
March 25: Canada passes Bill-C-13, the government brings in a Temporary Wage Subsidy (TWS) for eligible employers. Under this subsidy, you can reduce the amount of payroll deduction to be paid to the Canada Revenue Agency. The subsidy is equal to 10% of the salary you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.
March 27: The government announces a number of measures under the COVID-19 Economic Response Plan. These include the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Business Account (CEBA) loan, EDC and BDC loans under the Business Credit Availability Program (BCAP), and deferral of sales tax remittance and customs duty payments until June 2020.
April 8: The government issues a statement that it would be making temporary changes to the Canada Summer Jobs program. The temporary measures would help small businesses hire summer staff and provide employment to Canadian youth.
April 9: The government launches the Canada Emergency Business Account (CEBA) loan. Under this program, small businesses can apply for an interest-free loan of up to $40,000 to meet costs such as payroll, utilities, rent and property tax, insurance or debt service.
April 16: The government notifies it would be introducing the Canada Emergency Commercial Rent Assistance (CECRA) to provide rent relief to small businesses by reducing their monthly rent by 75%. It also widens the scope of the CEBA loan to include businesses that paid between $20,000 and $1.5 million in total payroll in 2019.
April 24: The government introduces the Canada Emergency Commercial Rent Assistance Program in partnership with the provincial and territorial governments. The government says under this program it will give forgivable loans to eligible commercial property owners to cover 50% of the monthly rent to be paid by eligible small business tenants for April, May and June.
April 27: Applications open for the Canada Emergency Wage Subsidy.
May 15: The Government of Canada announces it will extend Canada Emergency Wage Subsidy (CEWS) by an additional 12 weeks to August 29, 2020.
May 25: The Canada Emergency Commercial Rent Assistance program opens for applications. Eligible commercial property owners can apply to this program through the Canada Mortgage and Housing Corporation website.
Need support navigating business issues related to the COVID-19 pandemic?
Download our free resources on pandemic HR advice for business owners. For advice on how to maintain your business during the COVID-19 pandemic, call our experts today: 1 (833) 247-3652
