On October 9, 2020, the Government of Canada announced new and extended programs aimed at helping businesses with reduced revenues and increased costs as a result of the COVID-19 pandemic operate through the end of 2020 and first half of 2021.
New legislation is expected to be introduced and passed shortly.
These new and extended measures include:
Canada Emergency Rent Subsidy
Will replace the Canada Emergency Commercial Rent Assistance (CECRA)
Will provide rent and mortgage support until June 2021
Subsidy will be provided directly to tenants, while also providing support to property owners
Businesses, charities and non-for-profit organizations that have experienced the required revenue shortfall would be eligible
Can retroactively make claim back to period commencing September 27, 2020
Up to 90% subsidy for eligible expenses for organizations that have been forced to shutdown due to mandatory public health orders
Update Regarding Canada Emergency Wage Subsidy (CEWS)
The current wage subsidy program has been extended until June 2021
The subsidy will remain at the current maximum subsidy rate of 65% for the September 27, 2020 to October 24, 2020 period
65% subsidy rate includes:
A maximum base subsidy rate of 40% if revenue is down
A maximum top-up subsidy of 25% if revenue is down
Update Regarding Canada Emergency Business Account (CEBA)
Additional $20,000 interest-free loan being offered to businesses and non-for-profits impacted by the pandemic
$10,000 of the additional $20,000 of funding would be forgivable if repaid by December 31, 2022
Application deadline for CEBA has been extended to December 31, 2020
Attestation of pandemic’s impact on business required to access additional financing
More details can be found here: https://www.canada.ca/en/department-finance/news/2020/10/government-announces-new-targeted-support-to-help-businesses-through-pandemic.html
Update on Manitoba Wage Subsidy Programs
Over the last couple of months, the Manitoba Government has developed support programs to encourage organizations to hire or re-hire employees.
The Back to Work in Manitoba Program has been updated in the following ways:
Program extended to December 31, 2020
Promotes the hiring and re-hiring of employees in the private and non-for-profit sectors
Program covers 50% of wage costs between July 16 and December 31, 2020, to a maximum of $5,000 per worker
Businesses must not have received support from other government subsidies for the same positions
Employee start date must be July 16, 2020 or later
Application deadline extended to December 1, 2020
Payments will be made as a lump sum upon proof of payment of wages
For more information: https://www.gov.mb.ca/covid19/restartmb/btwmp.html
Additional Programs
For those who do not qualify or have not received the Canada Emergency Business Account (CEBA), there is an additional loan available through the Western Economic Diversification’s Regional Relief and Recovery Fund (RRRF).
Businesses must have been impacted by pandemic
Sole proprietors and not-for-profits organizations are not eligible for this loan
Information regarding 2020 revenue and expenses is required for the application process
There are 2 categories for this loan:
Category #1
Loan of $40,000 or less
75% of the financing must be repaid (similar to CEBA)
No scheduled repayments until 2022
Category #2
Loan between $40,000 and $1,000,000
100% of the financing must be repaid
No scheduled repayments until 2022
Applications will be accepted on an ongoing basis and program will close once all funds to eligible businesses are successfully disbursed
For more information: https://www.wd-deo.gc.ca/eng/20052.asp#rrrf
More Information to Come
Over the coming weeks, Fort Group will be providing more information and guidance about:
PD27 Form & T4 Summary & slips - Additional payroll reporting will be required for businesses that have claimed the 10% Temporary Wage Subsidy and/or the Canada Emergency Wage Subsidy
Home Office expenses - What needs to be provided to employees who worked at home for part of the year due to COVID-19.
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