Federal Funding for Employers

For the most up to date information, or to follow new announcements, be sure to check the Government of Canada's website for Coronavirus information.

Highly Affected Sectors Credit Availability Program (HASCAP)

HASCAP provides businesses an interest-free loan to support operational cash flow for businesses and non-profits who can demonstrate a 50% or more revenue decline within the last eight months..  Government guaranteed loans for $25,000 to $1 million dollars per legal entity, are available through local financial institutions.

 

Canadian Emergency Wage Subsidy (CEWS)

CEWS provides employers a subsidy of 75% of each employee’s wages, up to a maximum of $847 per week, per employee.  Currently CEWS is currently supporting employers who are working o return workers previously laid off as a result of COVID-19.

 

Temporary Wage Subsidy for Employers (TWS)

TWS provides a three-moth measure that allows eligible employers to reduce the amount of payroll deductions they need to remit to the Canadian Review Agency (CRA).  The subsidy is equal to 10 % of remuneration an employer pays from March 18 to June 2020 up to $1,375 per employee, up to $25,000.

 

Canada Emergency Business Account (CEBA)

CEBA provides interest-free loans up to $60,000 (increased from $40,000 to $60,000 on Dec.4, 2020). Expansion available for those who applied prior to this amount. Repayment of loan on or before Dec. 31, 2022 will result in loan forgiveness of 33% (up to $20,000). Eligibility criteria updated.  Available from most financial institutions.

 

Work-Sharing Program – COVID-19

This program helps employer and employees avoid lay-offs when there is a temporary decrease in business activity beyond the control of the employer.  It provide EI benefits to eligible employees who agree to reduce their normal working hours (minimum of six weeks)  and share available work while their employer recovers.  Available from March 15, 2020 to March 14, 2021.  Expanded eligibility.

 

Canada Emergency Rent Subsidy (CERS)

CERS provides support to businesses, non-profits organizations or charities who have seen a drop in revenues or their location has been significantly affected by public health orders, due to the CVOID-19 pandemic. This subsidy will cover part of commercial ren or property expenses, staring September 27, 2020 to June 2021.

 

SME Loan and Guarantee Programs

The Economic Development Canada (EDC) and Business Development Canada (BDC) will guarantee new operating credit and cash flow through term loans through local financial institutions available to small and medium size organizations for amounts up to $6.25 million.  Visit EDC and BDC for more information.

 

Administrative Tax Measures

Deadline extensions for deferral of tax until June 1, 2020, available for businesses and charities.  Audit and debt collection services suspended.