Update - Government Relief Programs

Business – Employees/Taxes/Rent Mortgage

Federal | Provincial| Local

Personal - Wages /EI/Taxes/Rent/Mortgage

Federal | Provincial | Local


COVID-19 Resource Hub Federal Government Programs.

Business – Employees/Taxes/Rent/Mortgage

Federal 

Updated July 13, 2020

The Canada Emergency Wage Subsidy is extended to December 31st, 2020.

updated April 17, 2020 Federal COVID-19 Economic Response Plan: New Support to Protect Canadian Jobs 

From: Department of Finance Canada 

The Government of Canada is taking immediate action through Canada’s COVID-19 Economic Response Plan to support Canadians and businesses facing hardship as a result of the global COVID-19 outbreak.  

The government is working in close consultation with all impacted sectors across the economy to take action where it is required, and is prepared to take further targeted action as needed to ensure that Canada is well-positioned for a strong recovery from the impacts of COVID-19 across all sectors of the economy. 

Refer to the complete plan outline on the Government of Canada website

Support for Business

  • Allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. 
  • Increase the credit available to small, medium, and large Canadian businesses. As announced on March 13, a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada. The Government is ready to provide more capital through these financial Crown corporations.

Update April 16th

  • · As of April 16, 2020 expanded the Canada Emergency Business Account (CEBA) to businesses that paid between $20,000 and $1.5 million in total payroll in 2019. This new range will replace the previous one of between $50,000 and $1 million, and will help address the challenges faced by small businesses to cover non-deferrable operating costs. Since the launch of the CEBA on April 9, 2020, more than 195,000 loans have been approved by financial institutions, extending more than $7.5 billion in credit to small businesses.
  • · April 16, 2020 announced its intent to introduce the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June. Implementation of the program will require a partnership between the federal government and provincial and territorial governments, which are responsible for property owner-tenant relationships. The federal government is working with the provinces and territories to increase rent support for businesses that are most impacted by the pandemic and will have more details to share soon.
  • Expand Export Development Canada’s ability to provide support to domestic businesses.
  • Provide flexibility on the Canada Account limit, to allow the Government to provide additional support to Canadian businesses, when deemed to be in the national interest, to deal with exceptional circumstances.
  • Augment credit available to farmers and the agri-food sector through Farm Credit Canada.
  • Launch an Insured Mortgage Purchase Program to purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). As announced on March 16, this will provide stable funding to banks and mortgage lenders and support continued lending to Canadian businesses and consumers. The Government will enable these measures by raising CMHC’s legislative limits to guarantee securities and insure mortgages by $150 billion each.

Helping Businesses Keep their Workers 

Updated April 8, 2020

Government of Canada’s Emergency Wage Subsidy eligibility parameters and details were announced:

  • Businesses that can show that their revenues have decreased at least 15 per cent in March, and 30 per cent in April and May will be eligible for the 75% wage subsidy. The subsidy would cover 75 per cent of an employee’s wages – up to $847 per week - for employers of all sizes and across all sectors.

An upcoming piece of legislation includes new criteria that is as follows:

  • Companies will still need to demonstrate a decline in revenue, but companies are now allowed to:
    • Compare their revenue of March, April and May 2020 to (a) that of the same month of 2019, or to (b) an average of their revenue earned in January and February 2020.
    • Demonstrate only a 15% gross revenue decline in March (30% for April and May will remain).
    • Choose between cash and accrual accounting to measure the revenue decline
  • The assessment of the 30% revenue drop will be done after the fact. If the drop was actually not this low, the company will have to repay.
  • The number of employees a company has will not determine eligibility.
  • The subsidy will apply to non-profit and charities, as well as companies that are both big and small (no cap).
  • The government will cover up to 75% of the first $58,700 that employees earn up to approximately $847 a week, backdated to March 15.
  • The subsidy will be a direct payment to the company so they can pay employees.
  • Employers eligible for the CEWS be entitled to receive a 100-per-cent refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund would apply to the entire amount of employer-paid contributions in respect of remuneration paid to furloughed employees in a period where the employer is eligible for the CEWS.

Any businesses that seek to take advantage of the new program will face strict consequences. The Prime Minister stated that should employers be able to cover the additional 25% of salaries not covered by the subsidy, they should pay their employees that difference.

Supportive Tax Measures

  • All businesses can defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020.  This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
  • The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
  • The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.

Ensuring Businesses Have Access to Credit

The Business Credit Availability Program (BCAP) will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses. This will be an effective tool for helping viable Canadian businesses remain resilient during these very uncertain times. BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism. The near term credit available to farmers and the agri-food sector will also be increased through Farm Credit Canada.

The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.

The Bank of Canada also took a series of actions to support the Canadian economy during this period of economic stress, enhance the resilience of the Canadian financial system, and help ensure that financial institutions can continue to extend credit to both households and businesses. This included cutting the interest rate to 0.75% as a proactive measure in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices

April 21, 2020 

The Prime Minister announced an investment of $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need. 

COVID-19 is having a disproportionate impact on those most vulnerable, creating a greater need for community-based organizations. To help these Canadians, the Government of Canada will provide additional support to charities and non-profit organizations through the Emergency Community Support Fund. 

The investment will flow through national organizations that have the ability to get funds quickly to local organizations that serve vulnerable populations. It will support a variety of activities, such as: 

  • Increasing volunteer-based home deliveries of groceries and medications 

  • Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments 

  • Scaling up help lines that provide information and support 

  • Helping vulnerable Canadians access government benefits 

  • Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response 

  • Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet 

The Emergency Community Support Fund will provide funding to national intermediaries with networks across the country, including United Way Canada, the Canadian Red Cross, and the Community Foundations of Canada. 

These partners will disburse funds to local community-based organizations working with vulnerable populations, including seniors, persons with disabilities, members of LGBTQ2 communities, veterans, newcomers, women, children and youth, and members of Indigenous communities and racialized communities, such as Black Canadians. 

Charities and non-profit organizations are also able to apply for the 75 per cent wage subsidy that the government announced on March 27, 2020. 

Other (Vulnerable Groups)

  • Reduce the minimum withdrawals from RRIFs by 25% for 2020.
  • Implement a six-moth, interest-free, moratorium on Canada Student Loan payments.
  • Provide $305 million for a new distinctions-based Indigenous Community Support Fund, to address immediate needs in First Natons, Inuit and Metis Nation communities.
  • $50 million to women’s shelters and sexual assault centers.

Federal - link to all measures can be found here

Provincial

Friday, May 1, 2020
Ontario defers Global Adjustment Charge for Electricity

Electricity Costs: Through an emergency order passed May 1, Ontario is taking steps to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan for the period starting from April 2020. This initiative is intended to provide companies with temporary immediate relief on their monthly electricity bills in April, May and June 2020.
The government intends to keep this emergency order in place until May 31, 2020, and subsequent regulatory amendments would, if approved, provide for the deferral of these charges for June 2020 as well.

This relief will prevent a marked increase (at least 15%) in GA charges due to the low electricity demand caused by the COVID-19 outbreak, holding GA rates in line with pre-COVID-19 levels.
 

Ontario Provides Urgent Relief for Small Businesses and Landlords 

Rent Assistance in Addition to Billions in Measures to Support Business During the COVID-19 Outbreak 

April 24, 2020 

The Ontario government is partnering with the federal government to provide urgent relief for small businesses and landlords affected by the COVID-19 outbreak. The province is committing $241 million through the new Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA). The total amount of provincial-federal relief is more than $900 million, helping to ensure small businesses are ready to reopen their doors when the emergency measures are lifted. 

 

The OCECRA will provide forgivable loans to eligible commercial property owners experiencing potential rent shortfalls because their small business tenants have been impacted by the COVID-19 crisis. To receive the loan, property owners will be required to reduce the rental costs of small business tenants for April to June 2020 by at least 75 per cent and commit to a moratorium on evictions for three months. 

Partnering with the federal government on the OCECRA builds on the provincial government's approach to supporting business during COVID-19. As part of Ontario's Action Plan: Responding to COVID-19, the government has implemented a series of cash flow supports amounting to $10 billion to help support jobs and the economy, including: 

  • Doubling the Employer Health Tax exemption for 2020, cutting taxes by $355 million, benefiting roughly 57,000 employers; 

  • Eliminating penalties and interest to businesses who miss filing or remittance deadlines for various provincially administered taxes for five months starting April 1, 2020, providing up to $6 billion in cashflow for about 100,000 Ontario businesses; 

  • Postponing the planned property tax reassessment for 2021, providing stability for Ontario's property taxpayers; 

  • Deferring the upcoming quarterly (June 30) remittance of education property tax to school boards by 90 days, providing municipalities with the flexibility to, in turn, provide property tax deferrals of over $1.8 billion to local residents and businesses; 

  • Implementing the new Regional Opportunities Investment Tax Credit for businesses that make eligible capital investments in designated regions of the province where employment growth has significantly lagged behind below the provincial average. 

Ontario has also suspended time-of-use electricity rates for eligible small businesses, as well as residential and farm time-of-use customers, holding electricity prices to the off-peak rate of 10.1 cents-per-kilowatt-hour, for 24 hours per day, seven days a week for 45 days, for all time-of-use customers, who make up the majority of electricity consumers in the province. By switching to a fixed off-peak rate, time-of-use customers will see rate reductions of over 50 per cent compared to on-peak rates. 

The Ontario government has also worked with the federal government to develop the Small and Medium-sized Enterprise Loan that will enable up to $40 billion in lending, supported through Export Development Canada and the Business Development Bank. This program will help businesses meet cash flow requirements through guaranteed loans. 

"In the months ahead, small businesses will be critical to Ontario's economic recovery. Together with our federal partners, we are ensuring we support our small businesses today, so that they can continue to create opportunities for hardworking Ontario families tomorrow," said Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction. "With rents coming due, it's extremely important that the federal government move quickly to implement this program and get small businesses and property owners the support they urgently need." 

Quick Facts 

  • The Province’s $241 million investment in OCECRA is part of the $17 billion Ontario’s Action Plan: Responding to COVID-19. 

  • The government has retroactively, to January 1, 2020, raised the Employer Health Tax (EHT) exemption to $1 million from $490,000 for 2020, providing additional EHT relief of up to $9,945 per eligible employer. 

  • Starting January 1, 2020, Ontario reduced the small business Corporate Income Tax rate from 3.5 per cent to 3.2 per cent. 

Background Information 

Additional Resources 

  • Finance Minister Rod Phillips announced that March 25th he would present a fiscal update instead of the 2020 Budget.  link  
  • Premier Ford announced that the government would introduce legislation that would provide job protection for employees unable to work, ensure employee would not be required to provide a medical note – retroactive January 25, 2020 and review access and eligibility to emergency assistance available through Ontario Works (OW) to support those impacted by the virus. link  
  • March 19 – Ontario is providing job-protected leave for employees who are in isolation or quarantine due to COVID-19, or those who need to be away from work to care for children because of school or day care closures or to care for other relatives. link
  • March 19 - Ontario will ensure that for the near future, the delivery of goods to Ontario's businesses and consumers isn't impacted by municipal noise by-laws that may unintentionally be impeding such deliveries when they are most urgently needed. The legislation also gives municipalities the ability to fully conduct Council, local board and committee meetings electronically when faced with local and province-wide emergencies, empowering the government's municipal partners to respond quickly when in-person meetings cannot be held. link

Local

Check your municipal/regional government, eg Barrie

https://www.barrie.ca/Doing%20Business/Business-Development/Pages/support-for-business.aspx?fbclid=IwAR0LO1bhXGixm_isZtQU2mX9MNhOfBwyCrrHdCDT_BlKtz8-Snh5mN6bfWA

City of Toronto Updates

Mayor John Tory announced that the city would extend the grace period for tax and other City of Toronto payments for 30 days. He also announced the City would protect city employees affected by closures and layoffs, establish a substantial contingency fund to support businesses and affected groups, facilitate entry into the EI system for those impacted by the pandemic and expand the City’s small business advisory services to help them plan to recover from impacts. link

Mortgages

The six largest financial institutions in Canada have made a commitment to work with personal and small business banking customers on a case-by-case basis. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.

Personal – Wages /EI/Taxes/Rent/Mortgage

Federal

 Support for Workers

  • Provide additional assistance to families with children by temporarily boosting Canada Child Benefit payments. This measure would deliver almost $2 billion in extra support.
  • Introduce an Emergency Care Benefit of up to $900 bi-weekly for up to 15 weeks to provide income support to workers who must stay home and do not have access to paid sick leave. This measure could provide up to $10 billion to Canadians, and includes:
    • Workers, including the self-employed, who are sick, quarantined, or who have been directed to self-isolate but do not qualify for Employment Insurance (EI) sickness benefits.
    • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent or other dependents who are sick, but do not qualify for EI sickness benefits.
    • EI-eligible and non EI-eligible working parents who must stay home without pay because of children who are sick or who need additional care because of school closures.
  • Introduce an Emergency Support Benefit delivered through the Canada Revenue Agency to provide up to $5 billion in support to workers who are not eligible for EI and who are facing unemployment.

CERB – Canada Emergency Response Benefit

A taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.

The CERB is available to workers who meet all of the following conditions:

  • live in Canada and are at least 15 years old
  • stopped working because of COVID-19 or are eligible for EI regular or sickness benefits
  • have not voluntarily quit their job
  • had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application.

On April 15, changes to the eligibility rules were announced to:

  • Allow people to earn up to $1,000 per month while collecting the CERB.
  • Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
  • Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19. Updated April 15, 2020
  • Provide additional assistance to individuals and families with low and modest incomes with a special top-up payment under the Goods and Services Tax (GST) credit. 
  • Waive, for a minimum of six months, the mandatory one-week waiting period for EI sickness benefits for workers in imposed quarantine or who have been directed to self-isolate, as announced on March 11.
  • Waive the requirement for a medical certificate to access EI sickness benefits.
  • Provide eligible small businesses a 10 per cent wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Employers benefiting from this measure would include corporations eligible for the small business deduction, as well as not-for-profit organisations and charities.  This will help employers keep people on their payroll and help Canadians keep their jobs.
  • Provide increased flexibility to lenders to defer mortgage payments on homeowner government-insured mortgage loans to borrowers who may be experiencing financial difficulties related to the outbreak. Insurers will permit lenders to allow payment deferral beginning immediately.

STUDENTS AND RECENT GRADUATES 

April 22, 2020 The Federal government announced comprehensive support of nearly $9 billion for post-secondary students and recent graduates. These measures include launching: 

  • the proposed Canada Emergency Student Benefit, which would provide support to students and new graduates who are not eligible for the Canada Emergency Response Benefit. This benefit would provide $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities. The benefit would be available from May to August 2020. 

  • the new Canada Student Service Grant, which will help students gain valuable work experience and skills while they help their communities during the COVID19 pandemic. For students who choose to do national service and serve their communities, the new Canada Student Service Grant will provide up to $5,000 for their education in the fall.  

The Government of Canada will expand existing federal employment, skills development, and youth programming to create up to 116,000 jobs, placements, and other training. In addition, to help students continue their studies in the fall, the government will: 

  • double the Canada Student Grants for all eligible full-time students to up to $6,000 and up to $3,600 for part-time students in 2020-21. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependents would also be doubled. 

  • broaden eligibility for student financial assistance by removing the expected student’s and spouse’s contributions in 2020-21, in recognition that many students and families will struggle to save for school this year. 

  • enhance the Canada Student Loans Program by raising the maximum weekly amount that can be provided to a student in 2020-21 from $210 to $350. 

  • increase existing distinctions-based support for First Nations, Inuit, and Métis Nation students pursuing post-secondary education by providing an additional $75.2 million in 2020-21. 

  • extend expiring federal graduate research scholarships and postdoctoral fellowships, and supplement existing federal research grants, to support students and post-doctoral fellows, by providing $291.6 million to the federal granting councils. In addition, the government intends to enhance work opportunities for graduate students and post-doctoral fellows through the National Research Council of Canada. 

Supportive Tax Measures

  • Extend the tax filing deadline for individuals to June 1, and allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18th  and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.  No interest or penalties will accumulate on these amounts during this period. This measure will result in households having more money available during this period.

Other (Vulnerable Groups)

  • Reduce the minimum withdrawals from RRIFs by 25% for 2020.
  • Implement a six-moth, interest-free, moratorium on Canada Student Loan payments.
  • Provide $305 million for a new distinctions-based Indigenous Community Support Fund, to address immediate needs in First Nations, Inuit and Metis Nation communities.
  • 50 million to women’s shelters and sexual assault centers.

Federal - link to all measures can be found here

Provincial

  • Ontario will introduce legislation that would provide job protection for employees unable to work, ensure employee would not be required to provide a medical note – retroactive January 25, 2020 and review access and eligibility to emergency assistance available through Ontario Works (OW) to support those impacted by the virus. link  
  • Tribunals Ontario is reviewing pending eviction matters in light of the rapidly evolving circumstances related to COVID-19 and no new eviction orders will be issued until further notice.
  • Ontario extending validation periods for driver, vehicle and carrier products, services and health cards. link
  • March 19 – Ontario is providing job-protected leave for employees who are in isolation or quarantine due to COVID-19, or those who need to be away from work to care for children because of school or day care closures or to care for other relatives. link

Local

Check your municipal/regional government

City of Toronto Updates

  • Mayor John Tory announced that the city would extend the grace period for tax and other City of Toronto payments for 30 days. He also announced the City would protect city employees affected by closures and layoffs, establish a substantial contingency fund to support businesses and affected groups, facilitate entry into the EI system for those impacted by the pandemic and expand the City’s small business advisory services to help them plan to recover from impacts. link

The six largest financial institutions in Canada have made a commitment to work with personal and small business banking customers on a case-by-case basis. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.

Community Resources – 211 Ontario

https://211ontario.ca/ or by phone 211

211 Ontario aggregates all community and social programs in one place. It is a great tool to refer vulnerable clients to health, housing, emergency food and funds. 211 is trying to update their information to reflect agency service changes due to the COVID-19 virus.