Update on COVID-19 Relief Measures

As governments at all levels continue to adapt and respond to the challenges of supporting our economy while minimizing the impact of COVID-19, the following additional relief measures were announced last week: 

March 25, 2020 – Department of Finance Canada Introduces Canada Emergency Response Benefit (“CERB”) The following is an excerpt from the Department of Finance’s release:
 
To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
 
To view the full release, please click the following link:
https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html 

Eligibility
A worker is eligible for income support payments, whether employed or self-employed, if they cease working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they are applying for payment.
 
Amount of support
The income support payment can be received for a maximum of 16 weeks and the maximum amount that can be received is $2,000 per four-week period.
 
Application process
A worker may apply for an income support payment for any four-week period falling between March 15, 2020 and October 3, 2020.  Payments are expected to be received within 10 days of application. Further details of the application process are expected to be announced in the first week of April, 2020.
 
March 25, 2020 – Ministry of Finance Introduces Ontario’s Action Plan:  Responding to COVID-19 
The following is an excerpt from the Ministry of Finance’s release:
 
The government's action plan is a first step in its response to COVID-19 and includes $7 billion in additional resources for the health care system and direct support for people and jobs. It also will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets.
 
To view the full release, please click the following link:
 
https://news.ontario.ca/mof/en/2020/03/ontarios-action-plan-responding-to-covid-19.html 

Highlights:

  • A one-time payment of $200 per child under 13 years of age ($250 for children with special needs) will be made to assist families with costs associated with school and daycare closures.

  • Electricity prices will be set at the off-peak price for a period of 45 days and eligibility for the Low-Income Energy Assistance Program will be expanded.

  • Employers with payroll of more than $490,000 and less then $5 million will benefit from a proposed temporary increase to the Employer Health Tax exemption.

  • Additional funding of $148 million will be made available to charitable and non-profit social services organizations.

  • Student loans administered under OSAP will receive loan and interest accrual relief for six months.

  • Introduction of the Regional Opportunities Investment Tax Credit to support capital investments in regions lagging in employment growth.  The following chart shows the eligible regions in Southern Ontario:

  • Municipalities may have the flexibility to provide property tax deferrals to local residents and businesses.

  • WSIB payments will be able to be deferred for up to 6 months.

 
March 27, 2020 – Prime Minister Announces Additional Support for Small Businesses Facing Impacts of COVID-19 
The following is an excerpt from the Prime Minister’s release:
 
The Prime Minister, Justin Trudeau, today 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.
 
To view the full release, please click the following link:
 
https://pm.gc.ca/en/news/news-releases/2020/03/27/prime-minister-announces-support-small-businesses-facing-impacts 

Highlights:

  • A 75% wage subsidy will be announced for qualifying businesses.

  • Businesses and self-employed individuals will be able to defer all GST/HST payments until June.

  • The proposed Canada Emergency Business Account program will provide $25 billion of funding to eligible financial institutions to allow them to provide interest-free loans to small businesses.  Businesses with annual payrolls of less than $1 million will be eligible for lines of credit up to $40,000, of which 25% may be eligible for complete forgiveness.

  • The proposed Small and Medium-Sized Enterprise Loan and Guarantee program will provide $40 billion of funding to enable Export Development Canada and the Business Development Bank of Canada to provide guarantees to financial institutions to allow them to issue new operating credit and cash flow term loans to small and medium sized businesses.

 
Please stay tuned for additional updates as more information becomes available with respect to these proposed measures.