More small businesses can soon access the Canada Emergency Business Account

June 15, 2020 - The Government of Canada is taking immediate, significant and decisive action through Canada’s COVID-19 Economic Response Plan to support Canadians and businesses facing difficult challenges as a result of the global COVID-19 outbreak. Small businesses in particular continue to face economic hardship and uncertainty during the COVID-19 pandemic. 


Today, Minister of Finance Bill Morneau announced that as of Friday, June 19, 2020, applications will be accepted so that more small businesses can access the Canada Emergency Business Account (CEBA). This means that owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible this week.  

 To qualify under the expanded eligibility rules, CEBA applicants with payroll lower than $20,000 will need:  

  • A business operating account at a participating financial institution;
  • A Canada Revenue Agency business number; 
  • A 2018 or 2019 tax return; and  
  • Eligible non-deferrable expenses of between $40,000 and $1.5 million. 

Eligible businesses will qualify for financing of up to $40,000, with 25 per cent of this being forgivable based on the current terms of CEBA loans. Businesses can contact their primary financial institution for more information or to apply directly for CEBA. More information on the expanded CEBA can be found on the program’s website.

CEBA is part of the Government of Canada’s COVID-19 Economic Response Plan, which is helping Canadians and businesses deal with the economic impacts of the pandemic. The measures under this plan will help businesses protect the jobs that Canadians depend on, keep their doors open, keep their employees on payroll, and recover quickly when the time comes.

The government continues to assess and respond to the impacts of COVID-19. It stands ready to take additional actions as needed to stabilize the economy and mitigate the impacts of the pandemic.

 

Prime Minister announces expansion of support for workers and small businesses

May 19, 2020 - Throughout the pandemic, the Government of Canada has focused on keeping Canadians safe and healthy and helping families pay their bills. That’s why we have introduced strong measures to protect middle class jobs and support businesses, so they can keep Canadians on the payroll during this challenging time.

The Prime Minister, Justin Trudeau, today announced an expansion to the eligibility criteria for the Canada Emergency Business Account (CEBA) to include many owner-operated small businesses. This extended measure will help small businesses protect the jobs that Canadians rely on.

The changes to the CEBA will allow more Canadian small businesses to access interest free loans that will help cover operating costs during a period when revenues have been reduced, due to the pandemic.

The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.

To qualify under the expanded eligibility criteria, applicants with payroll lower than $20,000 would need:

  • a business operating account at a participating financial institution
  • a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return.
  • eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

Expenses will be subject to verification and audit by the Government of Canada. Funding will be delivered in partnership with financial institutions. More details, including the launch date for applications under the new criteria, will follow in the days to come. To date, over 600,000 small businesses have accessed the CEBA, and the government will work on potential solutions to help business owners and entrepreneurs who operate through their personal bank account, as opposed to a business account, or have yet to file a tax return, such as newly created businesses.

This measure is part of the Government of Canada’s COVID-19 Economic Response Plan, which is putting Canadians and the protection of middle class jobs first. We will continue to help all Canadians, and together we will get through this crisis.

more support for women entrepreneurs

May 16, 2020 - Canadian women entrepreneurs are key to our economic success as a country, and they make invaluable contributions to our communities. However, women still face unique and systemic barriers to starting and growing a business, and they remain underrepresented in our economy.

The COVID-19 pandemic has disproportionately impacted women entrepreneurs. It has severely affected sectors such as retail, hospitality and food services—sectors where women entrepreneurs are most present. On top of typically operating smaller businesses and having less access to capital, many women business owners also still bear a disproportionate share of domestic work, caregiving and childcare.

To address these realities, and in keeping with our commitment to advance the economic empowerment of women, our government is taking action.

Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced that the Government of Canada will provide $15 million in additional funding to support women entrepreneurs through the Women Entrepreneurship Strategy (WES). This money will go directly to select organizations that are currently WES Ecosystem Fund recipients and will help women entrepreneurs through the COVID-19 pandemic.

In the coming weeks, this investment will help thousands of women entrepreneurs and business owners navigate this crisis. It will help ensure women across the country—whether they're a restaurant owner in Campbellton, New Brunswick, a manufacturer in Prince George, British Columbia, or a retailer in Rankin Inlet, Nunavut—get the support they need through things like business workshops, mentorship and skills training to adapt to a digital marketplace.

This investment builds on a wide range of federal supports that have been brought in to help small business owners retain their employees and keep up with their operating costs. This includes the 75% wage subsidy, lending supports, help with commercial rent and deferred tax payments, as well as dedicated funding for innovators, entrepreneurs in rural and northern communities and Indigenous-owned businesses.

The government is also boosting the Canada Child Benefit for parents, increasing funding to address gender-based violence and giving a monthly $2,000 Canada Emergency Response Benefit to Canadians who make under $1,000 a month—including entrepreneurs, workers and business owners.

Empowering women-owned businesses across Canada remains a key priority, and the government will continue working hard to ensure women entrepreneurs are supported through the pandemic and into the economic recovery.

Government of Canada launches applications for the Canada Emergency Wage Subsidy

April 27, 2020 - To help employers keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic, the Government has implemented the Canada Emergency Wage Subsidy (CEWS). This important economic measure provides a subsidy of 75% of an eligible employee's weekly earnings, to a maximum of $847 per employee per week, to eligible employers, for up to 12 weeks. Retroactive to March 15, 2020, the CEWS will prevent further job losses and encourage employers to re-hire workers previously laid off as a result of COVID-19. The Canada Revenue Agency (CRA) is administering the CEWS on behalf of the Government.

Today, the Honourable Diane Lebouthillier, Minister of National Revenue, launched the application process for the CEWS . As of today, employers can apply for the CEWS through My Business Account  or through the CRA’s online application portal , and their representatives can apply through Represent a Client .

All claims that are approved through the CRA’s automated verification process will be sent for payment on May 5, so that payments being made through direct deposit should begin to appear in employers’ accounts as of May 7. Some applications will require a secondary verification, done manually, and in these cases the CRA may contact employers to verify information. It is expected that these secondary verifications will take no more than 72 hours in the vast majority of cases.

The CRA has again partnered with financial institutions to enroll Canadian employers for direct deposit, and employers can now register business payroll accounts for direct deposit with the CRA through their bank portals.

Signing up for direct deposit will enable employers whose applications are approved to receive their CEWS payments quickly and securely. Employers can sign up for direct deposit with their financial institutions even after applying for the CEWS.

The CRA recognizes and appreciates the important role that stakeholder organizations are playing in providing feedback on how the CEWS program will operate. We look forward to continuing to work closely with employers and their representative organizations as we deliver the CEWS program.

Backgrounder

 

DETAILS OF THE CANADA EMERGENCY WAGE SUBSIDY TO HELP BUSINESSES KEEP CANADIANS IN THEIR JOBS

April 1, 2020 - Department of Finance Canada
The Government of Canada is taking immediate, significant and decisive action to support Canadians and businesses facing hardship as a result of the global COVID-19 outbreak.

To help Canadians and businesses get through these tough economic times, the Prime Minister, Justin Trudeau, announced that the Government is proposing to introduce a wage subsidy of 75 per cent for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.

This measure, which is a part of the Government of Canada’s COVID-19 Economic Response Plan , would support businesses that are hardest hit by the COVID-19 pandemic and would help protect the jobs Canadians depend on during these difficult times.

Today, Finance Minister Bill Morneau, the Minister of Small Business, Export Promotion and International Trade, Mary Ng, and the Minister of Innovation, Science and Industry, Navdeep Bains, announced the details of the proposed Canada Emergency Wage Subsidy:
  • The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
  • Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.
  • Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
  • For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
  • An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
    The Canada Emergency Wage Subsidy is a key measure to ensure that workers are able to count on a source of income through this difficult time. It will enable employers to re-hire workers previously laid off, and to keep those who are already on payroll, so that Canada’s workforce and supply chains are able to return from this crisis in a strong position.


Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details regarding how to apply for the program will follow. Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

The government will continue to carefully monitor all developments relating to the COVID-19 outbreak and will continue to take further action to protect Canadians and the economy.

The Canada Emergency Wage Subsidy - Backgrounder
 
Subvention salariale d’urgence du Canada - Document d'information

For more information, visit the Government of Canada website .

 

Prime Minister announces new support to protect Canadian jobs

April 17, 2020 - The Government of Canada is taking action to help Canadian businesses and organizations keep their doors open, keep their employees on the payroll, and recover quickly when Canada bounces back from this crisis.

The Prime Minister, Justin Trudeau, today announced new actions to protect Canadian jobs and provide more support to businesses and organizations dealing with the economic impacts of COVID-19. The Government of Canada will provide over $1.7 billion for targeted measures.

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Prime Minister announces additional support for small businesses

April 16, 2020 - The Prime Minister, Justin Trudeau, today announced new measures  to support Canadian businesses so they can keep their doors open and their employees on the job.

The Government of Canada is:
  • Expanding 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.
  • Announcing 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. We are working with the provinces and territories to increase rent support for businesses that are most impacted by the pandemic and we will have more details to share soon.

More information​

Prime Minister announces support for small businesses facing impacts of COVID 19

March 27, 2020 - The Prime Minister, Justin Trudeau, announced additional new measures to support small businesses dealing with the economic impacts of the pandemic. These measures will help Canadian businesses protect the jobs that Canadians depend on and pay their workers and bills during these difficult times.

The announcement is a part of the government’s COVID-19 Economic Response Plan, which already commits $107 billion in support to Canadians so they can buy groceries, pay rent, and care for their loved ones, and also supports businesses through this difficult time.

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GOVERNMENT OF CANADA RESOURCES FOR CANADIAN SMALL BUSINESSES

Small and medium-sized businesses are the backbone of the Canadian economy. During this extraordinary time, the Government of Canada is taking strong action to help Canadian businesses as COVID-19 is affecting them, their employees and their families. For more information on how Canada is supporting small businesses, visit the Government of Canada website .